Nghiên cứu ảnh hưởng của các nhân tố phi tài chính đến hiệu quả tài chính trong các doanh nghiệp kinh doanh khách sạn việt nam tt tiếng anh

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2

CHAPTER 1:

both domestic and international tourists. Thus, more theoretical and

INTRODUCTION

empirical research are necessary for managers of Vietnam hospitality
businesses to improve their operating performance.

1.1. Rationale of the study:
From the mid-1980s, there has been a revolution about the increase
in the use of non-financial factor to replace the measures based on
traditional accounting. That comes from a number of reasons as follows.
The non-financial factor is a better prediction of company failure
compared with financial measures; at the same time the non-financial
factors are motivation which leads to the financial performance ratios in
the future.

The above reasons demonstrate a necessity of a study of the nonfinancial factors and their effects on the financial performance of
Vietnam hospitality businesses. A number of questions have been stated
and needed answering. Therefore, the author selected to conduct a study
of the effects of non-financial factors on the financial performance of
Vietnam hospitality businesses with the aim of contributing a small
puzzle piece in research gaps on this issue.
1.2. Research objectives
The objectives of the research are (i) Identify non-financial factors

The hospitality industry is one of the rapidly developed tertiary
industries in recent times. Along with the international economic

affecting the financial performance of hospitality businesses; (ii) Inspect

integration and increasingly fierce domestic competition, hospitality

relationship and the influence level of non-financial factors on the

businesses have to confront a number of strong foreign opponents right
on their traditional territories. The level of researchers’ interest in

financial performance of Vietnam hospitality businesses; (iii) Making

assessing the effects of the non-financial factors on the financial
performance of the hospitality businesses has not solved adequately and

research results. The thesis also states research questions to achieve the

recommendations to Vietnam hospitality enterprises thanks to the
research objectives as well as methods for answer of these questions.

thoroughly. Previous studies have examined the impact of non-financial

1.3. Research subject and scope

factors on financial performance, but they have been carried out in
different country contexts, industries, and methods. Each study which is

1.3.1. Research subject:

The research subject of the thesis is the effects of the non-financial

just fragmented pictures of effects of some non-financial factors on the
performance of hospitality industry, has not considered the influence of

factors affecting the financial performance of Vietnam hospitality

other various factors.

business.

According to reports of the World Tourism Organization, Vietnam
ranks sixth in the list of the world’s fastest-growing tourist destination
and the Asia’s fastest- growing one. With the development of Vietnam
tourism over the past few years, the hospitality is an industry needed to
take into consideration for development in order to satisfy the needs of

1.3.2. Research scope:
* Spatial scope:
The study is empirically conducted in three - to five - star Vietnam
hospitality businesses which has been operated for more than 3 years
(does not include the new businesses established since 2016; foreign


3

enterprises

in

Vietnam

and

Vietnam

4

enterprises

in

which

accommodation service is not the only type of business.)
* Temporal scope:
The research is carried out from May 2017 to April 2018
1.4. Research methodology
Qualitative and quantitative research are two primary methods
applied in the study. Qualitative research method is conducted by gathering
documents and expert interview meanwhile quantitative research method
uses survey technique and quantitative data analysis with SPSS and AMOS
software.
1.5. Thesis contributions
The thesis aims at the following theoretical contributions:
i). The thesis identifies, classifies and develops non-financial
factors in order to consider the impact of those factors on the financial
performance; determines how to measure the financial performance
under the traditional view in measuring business financial performance,
combines with performance measurement which is a typical character

of Vietnam hospitality enterprises, in particular, the author proposed
forty-five observable variables for six dimensions (five independent
variables and one dependent variable).
ii). Research provides the basis confirming the relationship and
impact direction of the non-financial factors on the financial
performance of the hospitality businesses. Besides pointing out the
direct relationship, the thesis also demonstrates some indirect ones
which are meaningful in research model.
iii). The study verifies the effects of factors on the financial

Besides the theoretical contributions, the research also contributes
practical values as follows:
i). Through the surveys and data analysis, the study provides
significant and meaningful information relating to the non-financial
factors and the financial performance of the hospitality businesses,
which help describe and evaluate the current status of the financial
performance and non-financial factors in Vietnam hospitality
enterprises.
ii). Research identifies forty-five observable variables meeting the
appropriateness and reliability to measure non-financial factors and
financial performance. Research results showed which of the nonfinancial factors has positive influence (directly or indirectly) on the
financial performance, and the impact direction (positively or inversely)
of those factors. From that, managers in the hospitality businesses have
basis for considering, comparing within their businesses to take
appropriate measures for improvement.
iii). On the basis of determining the influence level of every nonfinancial factor on the financial performance, the study laid out the
recommendations proposed for business executives (managers) to
enhance the financial performance for Vietnam hospitality businesses.
1.6. Thesis structure
The thesis is presented in six chapters:

Chapter 1: Introduction
Chapter 2: Literature review.
Chapter 3: Theoretical basis and research framework.
Chapter 4: Research methodology

performance in terms of both aspects of profitability and special

Chapter 5: Research results

financial ratios of hospitality industry.

Chapter 6: Discussions and recommendations


5

CHAPTER 2:
LITERATURE REVIEW

6

2.2.1. The financial performance in the studies on operating
performance evaluation model of hospitality business.
The studies on the operating performance evaluation model of the

2.1. Global literature review of the non-financial factors affecting
the financial performance of hospitality business.
2.1.1. External non-financial factors.
The line of research on the external factors among research of the
hospitality is relatively few. The variables have been used namely

macro-economic forces (Barrows and Naka, 1994; Chen et al.
2005; Chen, M.H., 2007; Tang and Jang, 2009); the shocks as the ninth

hospitality businesses have been mainly empirical studies. The theoretical
foundation used in the majority of the studies is the balanced scorecard
model (BSC). The main results of the research showed that managers of
the hospitality businesses are interested in the non-financial factors rather
than waiting for the impact of the financial ratios. However, the studies
which have been mostly into the analysis of the features of the
performance evaluation system within a small sample of businesses, have

of November (Enz and Canina, 2002) or a serious plague of respiration

not examined the influence of the non-financial factors on the financial
performance of the businesses.

(Chen et al. 2007); etc. The studies of the external non-financial factors

2.2.2. Literature review of the scales of measurement of the

influencing on the financial performance of hospitality businesses have

financial performance in hospitality business.

been limited because of the complexity of the external factors and at the

The studies have focused on the financial performance

same time, it is difficult for enterprises to impact or adjust aiming to

measurement basing on the financial ratios such as the scales of
measurement of profit and profitability; the growth index (ROA, ROI,

improve their financial performance.
2.1.2. Internal non-financial factors
A large number of contributions mainly focus on the internal
factors which are chosen due to the fact that it is simpler to directly
determine the relationship between the dependent and independent
variables. Besides, the research conclusions brings greater significance

ROE, ROS); or the measurement under the special financial ratios of the
hospitality (OCR, ADR, REVPAR, ...); etc. Through the literature
review in the hospitality industry, the author found that the financial
performance measurement is predominantly carried out under a single
dimension. There is not any study clarifying the different impact of

for managers. Four main groups of the internal factors studied in

those factors on the financial performance measured under profitability
dimension and the financial performance under the specific financial

previous research are strategic factor; resource factor; service quality

ratios of the hospitality industry.

factor; and market orientation/ marketing factor.
2.2. Literature review of the financial performance of
hospitality business.

2.3. Literature review in Vietnam

In Vietnam, quite a lot of research have examined the operating
performance evaluation of businesses, however, most of these research


7

8

have focused on the criteria analysis of the operating performance

managers’ attention. However, they have not verified the impact

evaluation of each particular type of business.

direction and level of the non financial factors on the financial

Hospitality businesses has been chosen as research scope of many
studies in Vietnam. However, these research focus has been mainly on a
specific hotel or the subjects exploited under each particular dimension,
which predominantly service for management practices such as finding
solutions to grow the business of hospitality, improve service quality,
competitiveness or hospitality marketing management.

performance of the hospitality businesses.
Fourthly, literature review in Vietnam indicated that the hospitality
businesses have been chosen as the scope of several studies. However,
every topic exploits specific dimensions serving mainly for management
practices such as finding solutions to the hospitality business
development, enhancing service quality, competitiveness or hospitality

2.4. Research gaps and orientations.

marketing management. The majority of empirical research have just

2.4.1. Research gaps

focused on verifying the influence of financial criteria (factors) on the

Firstly, studies on the non-financial factors affecting the financial

financial performance of the businesses but have not attached special

performance are diverse and different results, which tend to show a
fragmented picture rather than overlapped results for being

importance to the non-financial factors. The verification of the impact

generalized. Each

performance of the hospitality businesses is a gap requiring much more

study

focused

primarily

on

one

or

some

determinants. The non-financial factors (independent variables) which
have been studied in published literature are mostly different, the
financial performance
measurement.

are

measured

under

various

scales

of

direction and level of the non financial factors on the financial
research to be filled.
2.4.2. Research orientations.
The research gap gained from literature review helped the author
determine research orientations as follows: The author studied the

Secondly, the financial performance has been considered under
different dimensions in the studies on the factors affecting it. There is

impact of the non financial factors on the financial performance of

not any combined research clarifying differences of the impact of these
factors on the financial performance under profitability and specific

in Chapter 3). This study chose the internal non-financial factors

financial ratios of the hospitality businesses.

external factors. To expand the sample range of the hospitality

Vietnam hospitality businesses (based on some specific theory presented
affecting the financial performance without referring and verifying the

Thirdly, the empirical research on the performance evaluation

businesses, this research measures the financial performance under

model of the hospitality businesses have been carried out. However,
the studies primarily focus on the factor analysis for assessing the

accounting value but the market value. In particular, the study verifies

performance of a small sample of hospitality businesses using
available detailed figures (mostly secondary data). The main results

profitability and specific financial ratios of the hospitality industry.

of the research have showed that the non-financial factors catch the

the impact of the non-financial factors on financial performance under


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10

CHAPTER 3:

of Narver and Slater (1990), the author studied and tested five nonfinancial factors which have effect on the financial performance,
namely: service quality, flexibility, resource utilization, innovation and
market orientation.
3.2. Non-financial factor theory

THEORETICAL BASIS AND RESEARCH FRAMEWORK
3.1. Theoretical basis for the construction of research
framework
3.1.1. Matrix of results and determinants (Fitzgerald et al. 1991)
The importance of service sector- a growing industry and the needs
to consider the performance measurement system for this sector were
recognized by Fitzgerald et al. (1991). The authors built the performance
a measurement model for service enterprises - that's “the matrix of results
and determinants". Fitzgerald et al. (1991) provides the building blocks
for the sizes, standards and rewards for the performance measurement
system in the service enterprises. The sizes were divided into results
(competitive performance and financial performance) and factors
affecting these results (service quality, flexibility, resource utilization and
innovation). However, this matrix hasn’t tested specific effect of the nonfinancial factors on the financial performance. Therefore, the factors of
service quality, flexibility, resource utilization and innovation are chosen

for the inclusion in the research model.
3.1.2. Market orientation theory of Narver and Slater (1990)
According to Narver and Slater (1990), market orientation is
necessary organizational culture to create outstanding value for buyers,
leading to remarkable performance (Narver and Slater, 1990). Narver and
Slater (1990) identified the orientation under three factors: customer
orientation, competitor orientation, interdisciplinary collaboration. Market
orientation is to create intelligence throughout the organization relating to
the needs of current and future clients, disseminate the intelligence within
the organization and bring superior efficiency for enterprises. (Narver and
Slater, 1990)
Thus, based on the theoretical basis of the matrix of results and
determinants (Fitzgerald et al. 1991) and the theory of market orientation

In this section, the author presented the nature, concept and
viewpoints of the non-financial factors including service quality,
flexibility, resource utilization, innovation and market orientation. At the
same time, some perspectives and scales of measurement inherited from
the factors are also stated in the thesis.
3.3. Financial performance theory
In this section, the author presented the concept and differences
among the measures of financial performance, as well as the viewpoint
of measuring the financial performance of Vietnam hospitality
businesses.
3.4. Research model and hypothesis
3.4.1. Research model
Based on the literature review and the theoretical basis of the
financial performance and non-financial factors, five non-financial
factors studied are "quality service, flexibility, resource utilization,
innovation and market orientation ". The research models of the impact

of the non-financial factors on the financial performance are as follows:
Model 1: Financial performance measurement under profitability
Model 2: Financial performance measurement under specific
financial ratios


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12

H4.1; H4.2
SERVICE
QUALITY

Innovation has a possitive influence on the financial
performance of Vietnam hospitality businesses.

H5.1; H5.2

MARKET
ORIENTATION

Market orientation has a possitive influence on the financial
performance of Vietnam hospitality businesses.

FLEXIBILITY
FINANCIAL
PERFORMANCE
(1) Profitability

CHAPTER 4:
RESEARCH METHODOLOGY

(2) Specific financial
ratios of hospitality
INNOVATION

RESOURCE
UTILIZATION

Figure 3.2: Proposed research model
The author’s research hypotheses are summarized in the following table:
Table 3.8: The hypotheses of the proposed research model
Model 1: Financial performance measurement under profitability
Model 2: Financial performance measurement under specific
financial ratios of the hospitality industry

H1.1; H1.2

quality

possitively

influences

the

financial

performance of Vietnam hospitality businesses.

H2.1; H2.2

Flexibility possitively influences the financial performance
of Vietnam hospitality businesses.

H3.1; H3.2

Interviewing experts is used in the qualitative research method
with the objective of determining the suitability of the factors in the
research model. The method is implemented with the questionnaire
consisting of three parts:
(1) Discussion of the impact level of five non-financial factors of
the proposed research model (service quality, flexibility, resource
utilization, innovation, market orientation) on the financial performance
of Vietnam hospitality businesses.

Content
Service

To test the model and research hypotheses, the author used both
qualitative and quantitative research methods.
4.2. Qualitative research method

3.4.2. Research hypothesis

Hypotheses

4.1. Overview of research methodology

Resource utilization has a possitive influence on the financial

performance of Vietnam hospitality businesses.

(2) Discussion of the hypotheses of relationships of the proposed
research model
(3) Discussion of the scales of measurement of factors in the
proposed research model
Results:
Table 4.3: The summarized results of the expert interviews on the
research hypotheses


13

Impact
factors

14

Proposed hypotheses

Note

Service

H1.1: Service quality positively affects the

quality

financial performance (profitability)
H1.2: Service quality positively affects the

financial performance (specific financial ratios
of hospitality industry)

Flexibility H2.1: Flexibility positively affects the financial
H2.2: Flexibility positively affects the financial
performance (specific financial ratios of

Resource H3.1: Resource utilization positively affects the
utilization financial performance (profitability)
H3.2: Resource utilization positively affects the
financial performance (specific financial ratios
of hospitality industry)
positively

affects

the

financial performance (profitability)
H4.2: Innovation positively affects the financial
performance (specific financial ratios of
hospitality industry)
H6.1:

Innovation

affects

the

financial Additional

performance indirectly (profitability) via hypothesis
quality service (Innovation has positive effect
on the quality service)
H6.2:

Innovation

Note

performance indirectly (specific financial ratios
of hospitality industry) via quality service
(Innovation has positive effect on the quality
service)
Market
H5.1: Market orientation positively affects the
orientation financial performance (profitability)
financial performance (specific financial ratios
of hospitality industry)
H7.1: Market orientation affects the financial Additional

hospitality industry)

Innovation

Proposed hypotheses

H5.2: Market orientation positively affects the

performance (profitability)

Innovation H4.1:

Impact
factors

affects

the

financial

performance

indirectly

(profitability)

via hypothesis

quality service (Market orientation has positive
effect on the quality service)
H7.2: Market orientation affects the financial
performance indirectly (specific financial ratios
of hospitality industry) via quality service
(Market orientation has positive effect on the
quality service)
H8.1: Market orientation affects the financial Additional
performance indirectly (profitability) via hypothesis

innovation (Market orientation has positive
effect on the innovation)
H8.2: Market orientation affects the financial
performance indirectly (specific financial ratios
of hospitality industry) via innovation (Market
orientation has positive effect on the


15

Impact
factors

16

Proposed hypotheses

Note

innovation)
Model 1: Financial performance measurement under profitability
Model 2: Financial performance measurement under specific
financial ratios of hospitality industry
INNOVATION

H6.1; H6.2

H8.1; H8.2

H4.1; H4.2

MARKET
ORIENTATION

H5.1; H5.2

H3.1; H3.2

SERVICE QUALITY
H7.1; H7.2

FINANCIAL
PERFORMANCE:
(1) Profitability
(2) Specific financial
ratios of hospitality
industry

H1.1; H1.2

H2.1; H2.2

the survey questionnaire, as well as do not misunderstand the meaning
of those questions through which the author may standardize the terms
and better the questionnaire for the official survey.
The selection of samples for preliminary quantitative research was
carried out under the method of convenience sampling of geographic
location, surveyed with small quantities of samples in the area of Hanoi
city. The author went to twenty hospitality businesses (three- to fivestar) in Hanoi to conduct the survey questionnaire directly. The result is
that basically, the survey is understood and accepted by managers but

needs editing several small errors in terms of vocabularies or semantics
to ensure that there is not any confusion or misinterpretation for
respondents.
4.3.2. Variables and scales of measurement for the official
research.
Through the literature review, the theoretical basis relating to the
factors in the model and the qualitative and preliminary quantitative
research, the author improved the variables and the scales of
measurement for the official quantitative study.
4.3.3. The official quantitative survey
4.3.3.1. Data collection tool.

FLEXIBILITY

RESOURCE
UTILIZATION

Figure 4.1: Research model
4.3. Quantitative research method
4.3.1. Preliminary quantitative research
Preliminary quantitative research was conducted after the survey
questionnaire was edited as a result of the qualitative research (expert
interview). Conducting preliminary quantitative research is to ensure
that the respondents understand the terminologies and the questions in

A survey tool used in the study is a questionnaire which was
developed to measure the demographic characteristics, the hospitality
characteristics and the main factors. The author used a 5-point Likert
scale as a survey tool. The first part of the questionnaire includes the
information specified in the model of the financial performance and the

influential non-financial factors. The second section consists of the
questions of management demographic (gender, age, educational level,
work experience) and questions of the hospitality characteristics (class,
size, age, location).
4.3.3.2. Sampling method


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18

To ensure the research data, the author sent the survey
questionnaire to 820 hotels of three to five stars on the list of the General
Statistics Office of Vietnam. The survey questionnaire was distributed
via a combination of three methods: mailing by post, mailing directly by
Google docs and providing printouts directly (hard copy).

CHAPTER 5:
RESEARCH RESULTS

4.3.3.3. Data collection and analysis

5.1. Overview of business activities of the hospitality in Vietnam
The study generalizes features, data demonstrating the pace of
development of business activities of the hospitality in Vietnam.
5.2. Results of descriptive statistics

* Data collection
The survey questionnaire is mailed with the support of google docs
at zttps://goo.gl/forms/FHSc3lRuSIJcqUmw1. After a week of sending

mail without receiving a response, the author will call to find out the
reason and solve situations. With the mailing form (sending hard copies)
via post, the author calls directly after 2 weeks. With the geographical
convenient businesses visited directly by the author, the survey forms
distributed are not less than two. After removing the businesses having
responded to the questionnaire, the author conducted a direct survey of
the hospitality businesses (mainly in Central and Southern Vietnam)
through the survey of businesses of the General Statistics Office in
October 04,2018. The timing of data collection was from October 2017
to April 2018. Total responses received after eliminating the invalid ones
(tick only one answer for all questions of the questionnaire) were
346. This sample size is satisfied for quantitative data analysis.
* Data analysis:
Based on the answers of the survey forms satisfying the
conditions, the collected data was analysed, processed by SPSS, AMOS
software to implement descriptive statistics; test the reliability of scales
of measurement; analyse the exploratory and affirmative factors; verify
the structural model.

The study presents the results of the description of the survey
sample and variables in the research model of frequencies average
values, etc.
5.3. Reliability test result of the scale of measurement
Reliability test result of the measurement scale of concepts
eliminates eight observable variables and forty-five variables reaching
the standard remaining.
Table 5.11: Cronbach’ Alpha of the measurement scale after
removing unreliable observable variables
Number

Observable variables

Cronbach’s
Alpha

1

Servive quality (SQ)

0.940

2

Flexibility (FL)

0.935

3

Innovation:
- Innovation magnitude (IM)

0.899

- Innovation speed (IS)

0.932

4

Resource utilization (RU)

0.931

5

Market orientation (MO)

6

Financial

Profitability

0.869

7

Financial performance – specific financial

0.789

performance

0.937
-

(PROFIT)
ratios of the hospitality industry (HOTSPE)

19

20

5.4. Exploratory Factor Analysis (EFA)

Table 5.15: CR and AVE

Table 5.12: Results of KMO and Barlett’s Test
Criteria

Model 1

CR

AVE

CR

AVE

Model 2

SQ

0.940

0.566

IM

0.901

0.647

0.935

0.743

MO

0.939

0.722

KMO index

0.922

0.918

FL

Sig Bartlett’s test

0.000

0.000

RU

0.933

0.735

PROFIT

0.873

0.633

Total variance explained

67.308

66.845

IS

0.933

0.736

HOTSPE

0.791

0.558

Minimun Eigenvalues

1.554

1.566

* Principal components analysis withVarimax rotation:

It could be seen that the Composite Reliability is more than 0.7
and the Average Variance Extracted is more than 0.5, so measurement
scales of observable variables meet the requirements.

The results showed that the remaining observable variables after
removing unreliable scales of measurement are grouped into 7

5.6. Structural equation model testing:
* Testing result of model 1:

categories:

Table 5.16: Testing result of model 1

- Total variance explained is 67.308% (model 1) and 66.845%
(model 2) which are satisfactory> 50%; it could be said that these

5.5. Confirmatory factor analysis (CFA)
* Relevant level: The result showed that:

***

<---

MO

.145

.073

1.996

.046

SQ

<---

IN

.311

.156

1.997

.046

PROFIT

<---

SQ

.116

.054

2.137

.033

PROFIT

<---

FL

.199

.065

3.082

.002

PROFIT

<---

MO

.260

.072

3.600

***

PROFIT

<---

IN

.266

.144

1.839

.066

PROFIT

<---

RU

.139

.050

2.754

.006

* Testing result of model 2:

CFI=0.961; RMSEA=0.040 (<0.08); with model 2: Chi-square/df =
1.562 (< 2); TLI = 0.957; CFI = 0.960; RMSEA = 0.040 (< 0.08), so it

Table 5.17: Testing result of model 2
Estimated

could be said that both models match the market data
(AVE)

P Value

7.274

SQ

With model 1: Chi-square/df = 1.545 (<2); TLI = 0.958 ;

* Composite Reliability (CR) and Average Variance Extracted

C.R.

.045

MO

variability of the data.

which are both satisfactory > 1.

S.E.

.324

<---

factors explain 67. 308% (model 1) and 66. 845% (model 2) of the
- Eigenvalues coefficient of the factors are high (> 1), factors
including Eigenvalues (the lowest) are 1,554 (model 1) and 1,566 (model 2)

Estimated
IN

S.E.

C.R.

P Value

IN

<---

MO

,322

,045

7,224

***

SQ

<---

MO

,146

,073

2,008

,045

SQ

<---

IN

,311

,156

1,992

,046


21

22

HOTSPE <---

SQ

,118

,058

2,039

,041

HOTSPE <---

FL

,173

,069

2,512

,012

HOTSPE <---

MO

,135

,076

1,773

,076

HOTSPE <---

IN

,281

,154

1,828

,068

HOTSPE <---

RU

,172

,054

3,191

,001

CHAPTER 6:
DISCUSSIONS AND RECOMMENDATIONS
6.1. Discussion of research results:
In this section, the author discussed the statistical relationship in
the research model:
- Service quality has positively direct effect on the financial performance
(both profitability and specific financial ratios of hospitality industry)
- Flexibility has positively direct effect on the financial performance (both
profitability and specific financial ratios of hospitality industry)
- Resource utilization has positively direct effect on the financial
performance (both profitability and specific financial ratios of hospitality
industry)
- Innovation does not affect directly on the financial performance ( both
profitability and specific financial ratios of hospitality industry) but indirectly
affect the financial performance via service quality factor.
- Market orientation has has positively direct impact on the innovation
and service quality.

- Market orientation not only has positively direct effect but also indirectly
affect the financial performance measuring under profitability.
- Market orientation does not have direct impact but indirectly
affect the financial performance measuring under the specific financial
ratios of hospitality industry.

6.2. Challenges for Vietnam hospitality businesses
Two major challenges for Vietnam hospitality businesses presented in the
study are challenges arising from technological advances and destination
competitiveness among countries.
6.3. Recommendations from research results
Based on the results of the survey and the data analysis, the author
made recommendations on each non-financial factor. Recommendations
were made on the basis of the observable variables satisfying the
reliability and having the average value lower than others.
6.4. Limitations and suggestions for further research
Firstly, the author used cross-sectional data collected from a survey in the
form of questionnaires, so biases of respondents may disturb the research results.
Collecting data from multiple sources and time series models are necessary
measures.
Secondly, this study used a sample from only one developing country –
Vietnam and focused only on the hospitality businesses (from 3 to 5
stars). Duplicate research should be conducted in other developing economies as
well as other industries to test the generality of the author’s findings.
Thirdly, the study measured the financial performance under
accounting value (the measures of the profitability and specific financial
ratios of hospitality industry) without the measurement under market
value. Future studies may incorporate more methods into measuring the
financial performance based on both the accounting value and the
market value for drawing more generalized results.

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24

CONCLUSION
The thesis has synthesized and compared with previous studies on the
non-financial factors affecting the financial performance of hospitality
business. At the same time the thesis also summed up the views and clarify
the theoretical background of the non-financial factors and financial
performance.
The study provides the bases confirming the relationship and
impact direction of non-financial factors on the financial performance of
Vietnam hospitality businesses. Besides pointing out the direct
relationship, the thesis also demonstrates several indirect relationships
which are meaningful in research model. Service quality, innovation,
flexibility, resource utilization, market orientation are non-financial
factors which are investigated. The previous studies, combining the data
from a variety of industries, showed the diversity of influence results of
these factors on the financial performance of businesses. This study
which focuses only on Vietnam hospitality enterprises infers
the statistically significant relationships directly and indirectly.

has both direct and indirect impact on the financial performance of
Vietnam hospitality businesses.

The factors of service quality, flexibility, resource utilization have
positively direct impact on the financial performance (both profitability
and specific financial ratios) in the hospitality businesses. With the

study's data sample, the innovation directly affects on the financial
performance in the hospitality industry, which has no statistical
significance but influences indirectly on the financial performance via
service quality factor. Market orientation directly affect the profitability
positively but does not have a direct effect on the specific financial
ratios of the hospitality industry.
Service quality factor does not only play a role of an independent
variable but also acts as mediator variable in relationships. Besides
mediating between innovation and financial performance, service quality
also acts as mediator between market orientation and financial
performance. In addition, the study also proves positive relationship
between market orientation and innovation. Market orientation factor

Research results provide a number of important implications for
the hospitality industry managers in administrating, managing and
giving solutions for their business. To compete in the market, enterprises
must be market oriented like customer orientation, competitor
orientation,etc. A market-oriented enterprise is likely to improve the
innovation, service quality and financial performance. The study also
provides evidence to infer that the better the service quality and the more
efficient and flexible the resource utilization, the higher the financial
performance. From the study findings, the hospitality managers can
enhance their knowledge in designing service more effectively and take
decisions concerning the priorities and alternatives.