From Survival to Resilience: Resolving the Weakness of New Rural Hotels Through EO—An Empirical Study Based on Dynamic Adjustment Mechanisms

New rural hotels in China face a critical challenge, with an annual failure rate of 42%. This high rate is attributed to their “Newness Weakness (NW),” characterized by a lack of legitimacy, fragmented resources, and poor adaptability. Drawing on data from 67 Chinese rural hotels under 5 years old, this study investigates how Entrepreneurial Orientation (EO) drives performance within this constrained context. The results confirm a significant positive overall effect of EO on firm performance (β = .43, p < .01). However, this impact is primarily driven by Innovation Frequency (β = .41) and Strategic Proactiveness (β = .35), while the effect of Risk-Taking is weaker (β = .15) due to resource limitations. Crucially, the dimensions of NW function as pivotal moderators. A high legitimacy deficit significantly weakens the profit conversion of a risk-taking orientation (β = −.23), whereas resource fragmentation paradoxically strengthens the revenue growth effect of an innovation orientation (β = .27). The study further uncovers synchronous regulatory effects; for example, a strong brand image buffers the negative impact of new entrant threats on innovation performance (β = −.31). This research contributes a “Dynamic EO” model, develops localized measurement instruments, and constructs an actionable “resource assembly” implementation framework, offering a strategic pathway for nascent rural hotels to transition from survival to sustainable resilience.

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Publication Details

Journal
SAGE Open
Published
2025-10-01
DOI
https://doi.org/10.1177/21582440251407373
Primary Topic
Diverse Aspects of Tourism Research
Type
article
Field-Weighted Citation Impact
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article

From Survival to Resilience: Resolving the Weakness of New Rural Hotels Through EO—An Empirical Study Based on Dynamic Adjustment Mechanisms

Min Zhong, Tian Zhou, Fox Z.Y. Hu, Zhonghong Cao
SAGE Open
Diverse Aspects of Tourism Research
article

From Survival to Resilience: Resolving the Weakness of New Rural Hotels Through EO—An Empirical Study Based on Dynamic Adjustment Mechanisms

Min Zhong, Tian Zhou, Fox Z.Y. Hu, Zhonghong Cao
article en

Abstract

New rural hotels in China face a critical challenge, with an annual failure rate of 42%. This high rate is attributed to their “Newness Weakness (NW),” characterized by a lack of legitimacy, fragmented resources, and poor adaptability. Drawing on data from 67 Chinese rural hotels under 5 years old, this study investigates how Entrepreneurial Orientation (EO) drives performance within this constrained context. The results confirm a significant positive overall effect of EO on firm performance (β = .43, p < .01). However, this impact is primarily driven by Innovation Frequency (β = .41) and Strategic Proactiveness (β = .35), while the effect of Risk-Taking is weaker (β = .15) due to resource limitations. Crucially, the dimensions of NW function as pivotal moderators. A high legitimacy deficit significantly weakens the profit conversion of a risk-taking orientation (β = −.23), whereas resource fragmentation paradoxically strengthens the revenue growth effect of an innovation orientation (β = .27). The study further uncovers synchronous regulatory effects; for example, a strong brand image buffers the negative impact of new entrant threats on innovation performance (β = −.31). This research contributes a “Dynamic EO” model, develops localized measurement instruments, and constructs an actionable “resource assembly” implementation framework, offering a strategic pathway for nascent rural hotels to transition from survival to sustainable resilience.

SAGE OpenVol. 15(4)
Hunan University of Science and Engineering (CN), Hubei University (CN)
Openalex Percentile: Top 50%
Diverse Aspects of Tourism Research
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