INSTITUTIONAL ASPECTS OF TRANSFORMATION PROCESSES IN THE HOSPITALITY INDUSTRY

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: Apr 5, 2024

  Uliana Huzar

  Marіana Nazar

  Andrii Kobryn

Abstract

The article is devoted to the study of the impact of institutional aspects on the transformation of the hospitality industry in Ukraine. The object of the study is the transformation processes of the hospitality industry, which took place under the influence of institutional factors. The paper analyses a number of scientific works by foreign and domestic scholars on understanding the concepts of "institution", "institute", "institutional environment" and its importance in the development of the hospitality industry in general. Methodology. The aim of the study is to analyse the impact of institutional factors on the transformational processes of development of the hospitality industry in Ukraine at the present stage. It is proposed to consider the institutional environment as a set of formal and informal institutions that at different levels have different impacts on the formation of the institutional system of society. The comparative characteristics of formal and informal institutions were compiled in order to clearly distinguish their differences and apply them correctly in building an effective institutional policy for the hospitality industry. It is proved that although formal institutions are relatively stable, their formation and preservation should be based on their perception by people in society as a factor in effectively solving certain problems. It was determined that Ukraine, as a country in a period of crisis (direct military action), should seriously consider institutional factors as a source of future direct investment, and weak institutional policies will raise concerns about the possibility of transferring management practices, procedures, and methods from other countries. The authors compiled a scheme of influence of factors on the formation of the institutional environment of the country as a whole and the hospitality industry, including political, legislative, economic, socio-cultural and ethical factors of influence. The publication examines the mutual influence of the institutional environment and the organisation, which is based on institutional ties, institutional pressure and institutional entrepreneurship. It has been found that an effective institutional environment stimulates the development of the hospitality industry, and a good institutional structure characterised by a strong rule of law, control of corruption, freedom of expression, a stable political environment, better regulation and good governance can open a new path for hospitality services. Conclusion. The results of the study are a significant contribution to the qualitative formation of the institutional environment of the hospitality industry.

How to Cite

Huzar, U., Nazar, M., & Kobryn, A. (2024). INSTITUTIONAL ASPECTS OF TRANSFORMATION PROCESSES IN THE HOSPITALITY INDUSTRY. Baltic Journal of Economic Studies, 10(1), 54-62. https://doi.org/10.30525/2256-0742/2024-10-1-54-62
Article views: 142 | PDF Downloads: 79

##plugins.themes.bootstrap3.article.details##

Keywords

institutional environment, transformation, hospitality industry, formal and informal institutions, institutional relations, institutional pressure, institutional entrepreneurship

References

Davis, L., & North, D. (1970). Institutional Change and American Economic Growth: A First Step tovards a Theory of Institutional Innovation. Journal of Economic History, Vol. 30(1), p. 131–149.

Oxley, J. E. (1999). Institutional environment and the mechanism of governance: The impact of intellectual property protection on the structure of interfirm alliances. Journal of Economic Behavior & Organization, Vol. 38, p. 283–309.

Chukhno, A. (2008). Institutionalism: theory, methodology, significance. Economy of Ukraine, Vol. 6, pp. 4–13.

Yaremenko, O. L. (2011). Institutional characteristics of financial globalization. Scientific Papers of Donetsk National Technical University. Series: Economic, Vol. 37-1, p. 153–157.

Holod, A., Korkuna, О., & Felenchak, Y. (2019). Institutional environment of tourism and hotel and restaurant of business in Ukraine under conditions of decentralization. Evropský časopis ekonomiky a managementu, Vol. 5 (4), p. 78–85.

Vatamanyuk, Z. (2005). Institutional foundations of the formation of the economic system of Ukraine: theory and practice. Lviv: Novy Svit-2000, p. 648.

Savchenko, V. (2011). National economy. Kyiv: Znannia, p. 309.

Williamson, O. (1985). The economic institutions of capitalism: Firms, Markets, Relational Contracting. Available at: https://edisciplinas.usp.br/pluginfile.php/3806114/mod_resource/content/1/Williamson.pdf

Sukhostavets, A. (2017). Institutional environment of social capital formation. Economy and Society, Vol. 12, p. 155–158.

Chang, Ha-Joon (2011). Institutions and economics development: theory, policy and history. Journal of Institutional Economics, Vol. 7:4, p. 473–498.

Veblen, T. (1919). The place of Science in Modern Civilization and Other Essays, p. 515.

Hamilton, W. (1932). Institution. Encyclopedia of the social Sciences, N. – Y., V.VIII, 300.

Peng, M. (2002). Towards an institution-based view of business strategy. Asia Pacific Journal of Management, Vol. 19, p. 251–267.

Demirbag, M., Tatoglu, E., & Glaister, K. W. (2007). Factors influencing perceptions ofperformance: The case of western FDI in an emerging market. International Business Review, Vol. 16, p. 310–336.

Scott, W. R. (1995). Institutions and organizations, Thousand Oaks, CA: Sage.

Stryzhak, O. (2016). The Concept of the institute: basic approaches to determining the essence and content. Economy and State, Vol. 8, p. 38–43.

North, D. (1990). Institutions, institutional change and economic performance. Cambridge, UK: Cambridge University Press.

Powell, W. (1991). Expanding the scope of institutional analysis. In Powell W. W., DiMaggio P. J. (Eds.), The new institutionalism in organizational analysis. Chicago: University of Chicago Press, p. 183–203.

DiMaggio, P. (1988). Interest and agency in institutional theory. In Zucker L. (Ed.), Institutional patterns and organizations: Culture and environment. Cambridge, MA: Ballinger, p. 3–21.

Scott, W. (2005). Institutional theory: Contributing to a theoretical research program. In Smith K. G., Hitt M. A. (Eds.), Great minds in management. Oxford University Press, p. 460–484.

Brett, J., Tinsley, C., Janssens, M., Barsness, Z., & Lytle, A. (1997). New approaches to the study of culture in industrial/organizational psychology. In Earley P. C., Erez M. (Eds.), New perspectives on international industrial/organizational psychology. Jossey-Bass, p. 75–129.

Coyne, CJ, & Leeson, PT (2004). The plight of underdeveloped countries. Cato Journal, Vol. 24, p. 235–249.

Hyder, A., & Abraha, D. (2014). Marketing strategy in emerging market alliance: a longitudinal Stud. International Business and Entrepreneurship Development, Vol. 7(4), p. 309–325.

Hofstede, G., & Minkov, M. (2011). The evolution of Hofstede’s doctrine. Cross CultureManagement: An International Journal, Vol. 18(1), p. 10–20.

Hyder, A., & Abraha, D. (2003). Strategic alliances in Eastern and Central Europe, Pergamon.

Huzar, U., Paska, M., & Radzimovska, O. (2023). Practical aspect of hospitality staff creativity. Baltic Journal of Economic Studies, Vol. 9(2), p. 104–109. DOI: https://doi.org/10.30525/2256-0742/2023-9-2-104-109

Zeneli, V. (2016). Corruption, foreign direct investment, and international marketing in the WesternBalkans. Thunderbird International Business Review, Vol. 58(3), p. 277–291.

Tanzi, V., & Davoodi, H. R. (2000). Corruption, Growth, and Public Finances. National Bureau of Economic Research, no 00/182.

Morhunetsʹ, O. B., Korobkina, M. R., & Vofsi, P. V. (2023). Institutional factors and their influence on the development of the hotel and restaurant business of Ukraine. Available at: https://economyandsociety.in.ua/index.php/journal/article/view/2688/2603

Singh, J. V., D. J. Tucker, & R.J. House. (1986). Organizational legitimacy and the liability of newness. Administrative Science Quarterly, Vol. 31, p. 171–193.

Miner, A. S., Amburgey T. L., & Stearns, T. M. (1990). Interorganizational linkages and transformational shields. Administrative Science Quarterly, Vol. 35, p. 689–713.

Paska, M., & Mlynko, O. (2023). Technological aspects of the use of functional beverages in the restaurant business. Economy and Society, Vol. 52. DOI: https://doi.org/10.32782/2524-0072/2023-52-88

Prutska, T. (2015). Institutional support for the development of entrepreneurship in the agricultural sector. Economy of the agricultural sector, Vol. (2), p. 93–100.

Huzar, U., Holod, A., Paska, M., Felenchak, Y., & Fedoryshyna, L. (2022). Establishment of the hospitality industry as a factor of increasing the competitiveness of the national economy. Financial and Credit Activity Problems of Theory and Practice, Vol. 3(44), p. 208–215. DOI: https://doi.org/10.55643/fcaptp.3.44.2022.3596

Huzar, U., Holod, A., Paska, M., Felenchak, Y., & Stakhiv, I. (2021). Problems of image formation of enterprises of the hospitality industry in the conditions of the global pandemic. Financial and Credit Activity Problems of Theory and Practice, Vol. 3(38), p. 447–455. DOI: https://doi.org/10.18371/fcaptp.v3i38.237477