The influence of compound distance factors on the internationalisation of large-sized companies in the hotel industry

Abstract

The goal of the study is to identify significant compound distance factors which influence the level of presence of large-sized hotel companies in different countries. Level of presence in host market serves as a measurement of internationalisation activity. The main objectives of the study are the development of hypotheses about influence of compound distance factors on the hotels’ geographic presence pattern, basing on the review of existing theory, the creation of a sufficient sample of observations; the formation of the dependence model and determination of significant factors by testing the model. Conclusions are made basing on the regression results. Nine hypotheses about influence of cultural, administrative, geographic and economic distances on internationalisation of hotels are stated and tested with a regression model. The regression analysis revealed that level of hotels’ presence in a host country is negatively influenced by national cultural distance, differences in the level of education and geographic distance, while previous colonial links have strong positive impact.