Niche Strategy and Niche Strategic Implementation for small business in the Hospitality Industry: An empirical investigation

Abstract

This thesis studies the implementation of niche marketing strategy in the hospitality industry. A conceptual framework was developed to examine the model of niche strategic implementation, which was validated with the empirical data set. This thesis investigates the relationship of niche characteristic, niche strategic implementation, which will affect to the niche organizational performance. Three research objectives were derived from the gap of literature review about niche strategy implementation to guide the entire research and examine how the important concepts for niche strategy implementation. First objective is to study the characteristic of niche strategy company.

The measurement development were the use of quantitative approach was applied to achieve these objectives. The developed instrument based on literature reviews. Collecting data in the research was using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The data was collected from the owner, management and employees who are working in the small niche firm in the hospitality industry in Thailand (i.e. hotel industry, restaurant and travel agent). To cover the information of a whole organization, the sample group was divided into 4 group which are owner or top management, manager or supervisor, employee who has to contact directly with the customer (front office) and employee who do not have to contact directly with the customers (back office). The study collected approximately 420 samples.

This study contributes to the theoretical advancement by connecting the relationship between 3 variable of characteristic of niche firm, niche strategy implementation and niche organizational performance. The characteristics of niche firms were studied and mentioned in several dimensions from many authors but there were not collected into the set of characteristic of niche firms. This research has collected the important characteristics of niche firm in every dimensions and grouped it together. Practical contribution of this study was presented to recommend and offer beneficial information to small niche firm owner and management including every employee to understand the important characteristic of niche firm and learn how to be successful of implementing niche strategy in their organization. Many authors and organization perceived since several years ago about organizational strategy will mostly fail during the implementation. However, 7 factors of niche strategy implementation which have been presented in this research will assist small niche firms to understand and having an overview of how to successfully implement niche strategy in their organization which finally it could be able to create positive performance to their organization. Lastly, the industry and policy contribution from this research was a valuable information and data to the government especially the government agencies which responsible for overseeing SEM business and regulatory agencies in the hospitality industry in Thailand. Because the hospitality industry is one of the very most important industry of Thailand which include several business such as hotel, restaurant, travel agency and etc. This information also could be a part of decision making process for the policy maker in order to promote the new policy to help small niche firms to be successful because the great success of many small niche firms could generate a huge success for the whole hospitality industry which will finally link to the great success of Thailand as well.

The result identified the relationship between 3 variable of niche characteristic, niche strategy implementation and niche performance. Empirical research shows the positive between these 3 variables especially the mediating effect of niche strategy implementation that influence the performance of small niche firms. The findings were interpreted in the relation to the previous studies and adapted to the present hospitality industry in Thailand. Research implication offered the valuable and updated information for practical and academic section of niche strategy field. Finally The limitations which happened during conducting and organizing of this research were discussed and the important recommendations were expressed in order to provide the beneficial information for future study.

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