Tourism Firms’ Vulnerability to Risk: The Role of Organizational Slack in Performance and Failure | Zendy

Chen Zheng | Zendy; Zezeng Li | Zendy; Jialin Wu | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Tourism Firms’ Vulnerability to Risk: The Role of Organizational Slack in Performance and Failure

Author(s) -

Chen Zheng,

Zezeng Li,

Jialin Wu

Publication year - 2021

Publication title -

journal of travel research

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 3.403

H-Index - 132

eISSN - 1552-6763

pISSN - 0047-2875

DOI - 10.1177/00472875211014956

Subject(s) - tourism , business failure , vulnerability (computing) , business , political risk , politics , business risks , sustainability , psychological resilience , industrial organization , marketing , finance , risk analysis (engineering) , psychology , ecology , computer security , political science , computer science , law , psychotherapist , biology

This study explores the influence of political risk on firms in the tourism industry. It addresses a research gap regarding the impact of political risk on firm-level performance and failure and uncovers the role of organizational slack in this relationship. Firm-level political risk is estimated from 2002 to 2019 financial data for firms across six tourism sectors in a developed economy, the United States. Such risk is found to be significantly associated with firm performance and business failure. From the perspectives of the resource-based view and the threat-rigidity hypothesis, the results support the moderating effects of absorbed and unabsorbed slack on links between risk, performance, and business failure. Given that the COVID-19 pandemic has highlighted the tourism industry’s vulnerability, this study will be of interest to tourism firms seeking to improve business sustainability and resilience.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research