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Research on Hotel’s Industrial Convergence Mechanism, Path and Risk

Author: XiaoJianYong
Tutor: ZhengXiangMin
School: Huaqiao University
Course: Tourism Management
Keywords: Hotel industry industrial convergence Consumer demandupgrade Complexity industrial network
CLC: F719
Type: PhD thesis
Year: 2012
Downloads: 268
Quote: 0
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Abstract


Along with the rapid socio-economic development and a widespreadpenetration of IT, producer-centric economy is gradually giving way toconsumer-centric economy, a time of constantly deconstruct and reconstruct,mutual convergence and division has arrived. It is in this context, the hotelindustry through vertical disintegration and horizontal expansion, driven bylabor division deepening, technological progress, consumer demand upgradeand institutional changes toward cross-border convergence. This paper fromthe perspective of system’s structure and function evolution analysis,integrated use abstract theoretical deduction, quantitative analysis model,historic inductive method and case studies, systematically studied theprerequisite, dynamic mechanism, formation process, impact effect, pathselection and risk management of the hotel industrial convergence. The resultsshowed that:①Industrial convergence is a self-organization process, underthe premise of productive factors free movement, two or more industry drivenby technology, demand and other factors, through modular’s verticaldecomposition and horizontal integration of cross-industry, make thetraditional vertical industry structure continues to strengthen the horizontallinkages simultaneously, form the complexity industrial network systeminclude new industrial properties or new form. Labor division and industrialconvergence is jointly promote the industrial system evolution and upgradefrom vertical and horizontal direction. On the one hand, to achieve lowerproduction costs brought by labor division, on the other hand, to meet theconsumer demand upgrade brought by industrial convergence, the wholeindustry also become more perfect function and more complex structure in thedynamic network system;②The composite and complexity characteristics ofhotel industry determine the universal convergence phenomenon. Outside thehotel industry convergence with the real estate form the business model of“real estate+hotel”, also common convergence with business services, convention meetings, leisure&recreation, and many productive factors orsub-industry within tourism, ultimately work together to build a complexindustrial network system. Also, because the exogenous driver is much largerthan endogenous drive, lack of core competitiveness and profitability causedthe hotel industry often plays a passive role in the convergence;③Theprerequisite of hotel industrial convergence include opening system, far fromequilibrium, and the nonlinear interaction between the different elements.Therefore, only maintain the openness of the industrial system, drive systemfar from equilibrium, breaking the linear relationship of the existing industrialsystem, the promotion of the nonlinear interaction between the differentsubjects of industrial systems can create the conditions for the hotel industrialconvergence, and can form a complex industrial network with new industryand new industrial property;④Labor division deepening, technologyadvances, consumer demand upgrades and institutional changes is the fourmotivation of hotel industrial convergence;⑤The process of hotel industrialconvergence can be summarized into two phases and three forms:“two stage”includes the vertical integrated industrial chains modular decompose and thecross-industry modular integrate;“three forms” includes the closed verticalintegrated industry (original form), open horizontal industrial system(decompose form) and dynamic network of industrial system (convergenceform);⑥The hotel industrial convergence not only brought new industrialproperties, new form, new value modularity, and dynamic complexityindustrial network, also lead to the hotel industrial border expansion,borderless enterprises formation, cooperation monopoly paradigmestablishment and the rules of survival changes. Companies are from theoriginal “pure competition”,“competition and cooperation” further towards“symbiotic”, also co-evolution and grow together in the complexity network;⑦The path of Chinese hotel industrial convergence has the following three: atinvest and research stage, convergence with real estate industry, financialindustry and other manufacturing industry form the derivative format, such ashotel real estate, hotel investment and hotel design; at operation and management stage, convergence with IT industry, form various types ofInternet distribution format and specialized reservation system; at marketdevelopment stage, convergence with producer services and consumerservices has high backward linkages, form integrated industry like variouscomplexes, such as tourism complex, commercial complex and exhibitioncomplex;⑧Chinese hotel industry is increasingly differentiated producerservices-based hotel and consumer services-based hotel, convergence withmodern service industry like finance and insurance, business services,professional technical services, and exhibition&convention industry will bean important direction for the future market convergence;⑨The risk of hotelindustrial convergence originated in the increasingly complexity of industrialnetwork system and interoperable between industrial assets, which makes theplatform enterprise should pay more attention to coordination and controlcapability, relationship management capability and overall networkcompetitiveness, improve the risk management mechanism in the industrialconvergence. This research on hotel industrial convergence mechanism, pathand risk will further enrich the theory of industrial convergence, at the sametime, provides a useful reference for Chinese hotel industry groupconstruction.

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