Won Seok Lee

Determinants of restaurant internationalization: an upper echelons theory perspective

The purpose of this research is to account for the internationalization of restaurants. The conceptual framework of upper echelons theory is applied to identify the demographic determinants of internationalization among chief executive officers (CEOs).,Data from 30 restaurant firms for the period 1999-2013 were collected from a variety of sources, primarily Compustat and Execucomp, based on Standard Industrial Classification (SIC) code 5812, the annual 10-K and public information. A panel feasible generalized least squares model was used as the main instrument of analysis.,The findings indicate that the CEO gender and share ownership negatively affect the internationalization of restaurant companies, whereas size, the extent of franchising, the type of restaurant and stock options positively affect the degree of internationalization. Additionally, an inverted U-shaped relation exists between CEO tenure and the degree of internationalization.,The presented information may provide shareholders and boards of directors with valuable guidelines regarding the assignment of appropriate managers depending on the extent to which their companies are pursuing internationalization strategies.,Most studies in hospitality sectors have focused only on accounting-based measures to explain strategic decision-making, although proponents of upper echelons theory have argued that CEO attributes influence strategic decisions/changes. This study contributes to the literature on hospitality by identifying the effects of CEO characteristics on internationalization decisions.

Restaurant Internationalization and the Top Management Team

ABSTRACT The purpose of this research is to examine how upper echelon theory accounts for restaurant internationalization. In particular, this research identified five attributes drawn from upper echelon theory (age, tenure, formal education level, share ownership, and stock options) that explain restaurant internationalization. We collected information from various sources (e.g., LinkedIn, 10-K annual reports, ExecuComp, and Compustat) in examining 29 restaurant companies listed on U.S. stock exchanges (NASDAQ, NYSE, and AMEX) over the 2000–2013 period. Panel feasible generalized least squares was used for the data analysis. We found that tenure negatively affected restaurant companies’ degree of internationalization. However, the results also showed that education level and the value of top managers’ stock options encouraged them to engage in less internationalization.

Study on the preference for capsule hotel attributes using a choice experiment

The main purpose of this study is to investigate the attributes of capsule hotels preferred by individuals. To this end, a choice experiment (CE) was adopted; a CE is a systematic method used to determine individual preferences with regard to goods and services. A well-known advantage of CEs is their ability to capture a pecuniary value for target attributes in the form of marginal willingness to pay (MWTP). By comparing the sizes of MWTPs, we can recognize the order of preference among attributes. Amazon Mechanical Turk was used to collect the study data. We examined the magnitudes of the degree of preferences for “additional services provided,” “accessibility,” and “price.” The findings indicate that price is negatively associated with capsule hotel choice, whereas accessibility and service are positively associated with capsule hotel choice.

Application of upper echelon theory for corporate social responsibility dimensions: Evidence from the restaurant industry

ABSTRACT This study applies upper echelon theory and validates its conceptual framework by investigating chief executive officers’ observable determinants (e.g., the age, tenure, and formal education of top managers) of corporate social responsibility (CSR) in the restaurant industry. Multiple CSR dimensions (e.g., operational, non-operational, community, diversity, employee, environment, and product) are examined through fixed effects regression. The results indicate that older and highly educated CEOs who serve more stakeholders perform fewer CSR activities, whereas longer tenured CEOs who serve more stakeholders perform more CSR activities. Consequently, non-operational, community-, diversity-, employee-, and environment-related CSR activities are significantly explained by the proposed attributes. By validating both the theoretical perspectives of upper echelon theory and the role of stakeholder demands in CSR decisions, this research can contribute to expanding the CSR and upper echelon literature to the restaurant industry.

Attributes of the coffee shop business related to customer satisfaction

ABSTRACT The purpose of this study is to investigate the antecedent attributes of customer satisfaction in the coffee shop business domain. Based on the literature, this research examines “atmosphere,” “employee attitudes,” “information technology service (IT service),” and “coffee quality” in relation to “satisfaction” and “loyalty.” A total of 277 observations were obtained from data collected using Amazon Mechanical Turk. For the data analysis, confirmatory factor analysis and structural equation modeling were conducted to examine the validity of the measurements and to understand the structural relationship. The results showed that the hypothesized antecedent variables were statistically significant to account for satisfaction. In particular, taste was identified as the most influential attribute accounting for satisfaction. Moreover, a significant relationship between “satisfaction” and “loyalty” was identified.

Influence of nostalgia on authenticity, satisfaction, and revisit intention: The case of Jidong mural alley in Korea

ABSTRACT The main purpose of the study is to examine the causal relationships among nostalgia, authenticity, satisfaction, and revisit intentions of tourists who visit the Jidong mural alley in Suwon, South Korea. An on-site survey was conducted, and 224 responses were used for the analyses (frequency, reliability, and confirmatory factor analysis, and structural equation modeling). The results showed that “real nostalgia” and “stimulated nostalgia” have a positive effect on authenticity, and authenticity is positively correlated with satisfaction. Moreover, satisfaction had significant influence on revisit intentions. The findings highlight nostalgia and authenticity as critical elements for secondary behavioral intentions, which include the satisfaction and revisit intentions of tourists.

The Upper Echelon Effect on Restaurant Franchising: The Moderating Role of Internationalization

Purpose This study aims to investigate how upper echelon theory accounts for franchising by selecting the top management team to proxy for the upper echelon and using age, tenure, education, equity ownership and stock options as its main attributes. Design/methodology/approach The sample was drawn from the Execucomp and Compustat databases and from other publicly accessible resources (e.g. LinkedIn and Business Week, in addition to Annual 10-K reports). A total of 29 restaurant companies were used for data collection, which covered the period of 2000-2013. A panel feasible generalized least squares (FGLS) regression was used to analyze the data. Findings The study found a significant moderating effect of the degree of internationalization on the relation between the attributes of the upper echelon (e.g. tenure, education and share ownership) and franchising decisions. Research limitations/implications The results verified that top managers in the restaurant industry with more tenure and share ownership become more risk averse when they operate under riskier conditions, whereas highly educated restaurant top management teams tend to take more risks in strategic decision-making. Originality/value This study expanded internationalization research to upper echelon theory and into the arena of franchising.