Determinants for labour productivity improvement in hotel service: empirical evidence from Vietnam

Labour productivity improvement is often regarded as the major driver for business development, especially in emerging economies. This paper presents the results of an empirical study to investigate the determinants for labour productivity improvement in hotel service in Vietnam. Statistical techniques such as ANOVA, regression and path analysis are applied to analyse data gathered from 122 hotels in Da Nang - a tourism-based city of Vietnam through a questionnaire survey. The analytical results indicate the important roles of both external and internal factors for hotel labour productivity improvement in hotel service in Vietnam. Such factors as the availability of labour force, labour quality, leadership style, management practices, technology application, and capital allocation are found as the critical determinants for labour productivity improvement in hotel service in Vietnam. The analytical results suggest several solutions to hotel managers and local government for labour productivity improvements by enhancing business environment together with focusing on different internal perspectives such as technology application and capital allocation.