The effect of using nonfinancial performance measures in improving hotel performance : using balanced-scorecard perspectives empirical evidence from Egypt

الملخص EN

The number of international tourist arrivals to Egypt has increased significantly.

With such increasing number of tourists, the hotel industry has made a vital contribution to the country's economy by creating large high numbers of employment and large revenues.

It is argued that hotel managers require financial and nonfinancial performance measures to monitor how well hotels perform on their critical success factors, i.

e.

customer satisfaction, service quality, asset utilization, and employee capability.

Once the managers obtain response, they are able to take corrective actions to improve hotel performance.

However, research on the impacts of hotel managers' use of financial and nonfinancial performance measures on hotel performance is still limited, especially in Egypt.

This study examines the relationships between (1) the use of financial performance measures and hotel performance; and (2) the use of non-financial performance measures and hotel performance.

Data for this study were collected from 205 departmental managers of medium to large-sized hotels in Egypt, using a survey questionnaire.

The results indicate that the relationship between the use of financial performance measures and hotel performance is positively and significantly.

The results also disclose that increased use of nonfinancial performance measures in each perspective: (a) customer perspective; (b) internal business process perspective; and (c) learning and growth perspective, is associated with improved hotel performance