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Research on the non-equity entry mode choices of service firms is relatively limited. We use transaction cost economics and organizational capability perspectives to examine the determinants of choosing between franchising and management contracts in the hotel industry. In our analysis of four international hotel organizations operating in New Zealand, we found that both asset specificity and imperfect imitability helped in explaining the choice between franchising and management contracts. Behavioral uncertainty and host country management capabilities explained the entry mode choice of some hotel organizations but were not applicable for others that entered New Zealand via international strategic alliances or used strata titles. Finally, environmental uncertainty and the development of New Zealand’s business environment had a limited effect on choosing between franchising and management contracts. [ABSTRACT FROM AUTHOR]

This study was undertaken to identify employee recruitment and retention issues in the New Zealand hotel industry and how and if Strategic Human Resource Management (SHRM) took place. Questionnaires were sent to 67 human resource managers of hotels who maintained hotels in excess of 75 rooms and had associated food and beverage operations. In total this involved 4,886 rooms and 2,163 equivalent fulltime employees, geographically spread throughout New Zealand. While more hotel jobs are being created, results indicate the number of applicants to jobs and caliber of applicants is dropping. Housekeeping and food and beverage positions are the highest turnover positions while qualified chefs are difficult to find. Strategic human resource planning is only undertaken by 59% of hotels and the image of the hotel industry appears negative to the external labour market. [ABSTRACT FROM AUTHOR]