Strategic orientation and performance measurement model in Taiwan's travel agencies

Author: Huang, Leo

Source: The Service Industries Journal, Volume 28, Number 10, December 2008 , pp. 1357-1383(27)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

This longitudinal study attempts to examine those effects and relationships of various performance measuring dimensions using the balanced scorecard conceptual framework on travel agencies under different strategic orientations in Taiwan. A three-stage research design is adopted to explore a valid and reliable e-commerce strategy performance measuring model for travel agencies. The research also uses the structural equation modeling (SEM) approach to further empirically build up e-commerce cost leadership and differentiation strategy performance measurement models. The theoretical model identifies an underlying variable construct, dimensions, and their associated attributes which combine the traditional subjective or objective measures with operating measures of e-commerce strategy performances. According to this research, Taiwanese travel agencies consider five financial, three customer, four internal process, and three innovation and learning perspective indicators of performance measurement that also have cause-and-effect relationships among themselves under two different strategies. Finally, this paper proposes two optimal models that match the essential needs of e-commerce cost leadership and differentiation strategic development and overcomes the traditional performance measuring shortcomings.

Keywords: balanced scorecard; LISREL; SEM; performance; travel agency; e-commerce

Document Type: Research article

DOI: http://dx.doi.org/10.1080/02642060802250179

Affiliations: 1: Department of Travel Management, National Kaohsiung Hospitality College, Kaohsiung, Taiwan, Republic of China

Publication date: 2008-12-01