The importance of destination attractiveness and entrepreneurial orientation in explaining firm performance in the Sardinian accommodation sector

Purpose: The purpose of this paper is to contribute to the understanding of successful business performance among accommodation firms by focusing on entrepreneurial orientation (EO) and destination attractiveness. Design/methodology/approach: A web-based e-mail survey was undertaken in the Sardinian accommodation sector in 2012. The sample included 224 accommodation firms and analyses were performed using ordered logit regressions. Findings: The results suggest no differential impact of EO on sales and profit depending on the attractiveness of the location in which the accommodation firm operates. Both EO and destination attractiveness were found to exert independent positive effects on firm performance. Furthermore, EO was found to have a larger effect on firm performance than destination attractiveness. Research limitations/implications: The study mainly considered hotels and camping accommodations in Sardinia. Additional investigations across accommodation types and geographic contexts are needed. Practical implications: The findings suggest that accommodation firms should focus on implementing entrepreneurial activities and not only, as frequently happens, concentrate on selecting attractive destinations in which to conduct their business. Moreover, the findings also suggest that accommodation firms that are located in less attractive areas may produce good performance if they are managed with an EO. Finally, training programs should be developed to improve the entrepreneurial abilities of accommodation managers. Originality/value: The specific topics of this paper have been understudied. The findings hold practical implications for entrepreneurs and managers who are involved in the accommodation sector.