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The Mediating Effect of Crisis Management on Leadership Styles and Hotel Performance in Jordan

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  • Raed Hussam Alzoubi
  • Amar Hisham Jaaffar

Abstract

Research scholars have argued that the emergence of the crisis in the Middle East have led to significant changes in business performance. This has been most notable in the hotels operating in the Jordanian tourist sector, thus, creating a need to investigate leadership styles, crisis management, and hotel performance in a holistic framework. However, this is quite lacking in the literature, and this needs to be addressed. Transformational leadership style and transactional leadership styles are the independent variables, crisis management is the mediating variable and hotel performance is the dependent variable. A quantitative study that used a self-administered questionnaire was carried out on 3-star to 5-star hotels operating in Jordan. The Partial Least Squares (PLS) method as part of Structural Equation Modelling (SEM) was applied to analyse the causal relationships between constructs using the software application Smart-PLS 3.0. The Partial Least Squares approach was chosen according to the research¡¯s exploratory nature. In order to analyze data two-step approach was utilized; the first step was to test the reliability and validity of the constructs in the measurement models, the second step was to test research hypotheses in the structural models. The results show that transformational leadership has significant positive effects on hotel performance and crisis management. Transactional leadership had a significant positive effect on crisis management and crisis management had significant positive effects on hotel performance. Moreover, crisis management partially mediated the relationship between transformational leadership and hotel performance; while the relationship between transactional leadership and hotel performance was fully mediated by crisis management. These findings will help to strengthen the discussion in the extant literature.

Suggested Citation

  • Raed Hussam Alzoubi & Amar Hisham Jaaffar, 2020. "The Mediating Effect of Crisis Management on Leadership Styles and Hotel Performance in Jordan," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 384-397, July.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:384-397
    DOI: 10.5430/ijfr.v11n4p384
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    References listed on IDEAS

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    1. Spillan, John & Hough, Michelle, 2003. "Crisis Planning in Small Businesses:: Importance, Impetus and Indifference," European Management Journal, Elsevier, vol. 21(3), pages 398-407, June.
    2. Jehad S. Aldehayyat & Adel A. Al Khattab & John R. Anchor, 2011. "The use of strategic planning tools and techniques by hotels in Jordan," Management Research Review, Emerald Group Publishing Limited, vol. 34(4), pages 477-490, March.
    3. Mohammad AL- Nuiami & Wael Mohamad Subhi Idris & Fayiz Abdelrahman Moh'd AL-Ferokh & Mah'd Hussein Moh'd Abu Joma, 2014. "An Empirical Study of the Moderator Effect of Entrepreneurial Orientation on the Relationship between Environmental Turbulence and Innovation Performance in Five-star Hotels in Jordan," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(2), pages 111-125, March.
    4. Hasan Yousef Aljuhmani & Okechukwu Lawrence Emeagwali, 2017. "The Roles of Strategic Planning in Organizational Crisis Management: The Case of Jordanian Banking Sector," International Review of Management and Marketing, Econjournals, vol. 7(3), pages 50-60.
    5. Coombs, W. Timothy & Laufer, Daniel, 2018. "Global Crisis Management – Current Research and Future Directions," Journal of International Management, Elsevier, vol. 24(3), pages 199-203.
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    Cited by:

    1. Ruba Kutieshat & Panteha Farmanesh, 2022. "The Impact of New Human Resource Management Practices on Innovation Performance during the COVID 19 Crisis: A New Perception on Enhancing the Educational Sector," Sustainability, MDPI, vol. 14(5), pages 1-21, March.
    2. María Dolores Sánchez-Fernández & Daniel Álvarez-Bassi & José Ramón-Cardona, 2020. "Management of Tourist Destinations: The Expectations of Guests on eWOM Generation in Maldonado (Uruguay)," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    3. Raed Hussam Alzoubi & Amar Hisham Jaaffar, 2021. "The Moderating Effect of Leaders¡¯ Experience on Leadership Styles and Crisis Management in the Jordanian Hotel Sector," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 297-309, January.

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