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THE RELATION BETWEEN INNOVATIONS AND TOURISM ENTERPRISES MARKET VALUE. INFORMATION POLICY'S MODERATING ROLE

THE RELATION BETWEEN INNOVATIONS AND TOURISM ENTERPRISES MARKET VALUE. INFORMATION POLICY'S MODERATING ROLE
Dawid Szutowski,, докторант, докторант

Poznań University of Economics, Польша

Участник конференции

Purpose The purpose of present paper was to verify the moderating role of tourism enterprises information policies on the relation between innovations and companies’ market values.

Design/methodology/approach In order to study the relationship between tourism enterprise market value and innovation, two approaches were applied: event study to determine short-term investors’ reaction and buy-and-hold abnormal return to assess the long-term one.

Findings Tourism enterprise information policy affects the relation between innovations and its market value in both: long- and short-term.

Limitations The sample size prevents the generalisation of results. Also only companies listed in three countries were analysed. Thus, the enlargement of special scope seems beneficial for further research.

Originality/value The paper fulfils the research gap concerning the moderating role of information policy in the relation between innovations and the market value of tourism companies.

Keywords: innovation, market value, information policy, tourism enterprise

 

Introduction

Innovations are a complex phenomenon that originates from early works of Joseph Schumpeter. The researcher described them, in the light of business cycles, as one of the following [Schumpeter 1939, p. 84]: new good, new method of production, opening of a new market, new source of supply or half-manufactured goods, new form of organization. Since than the intensive increase in knowledge concerning innovations was observed. However the research on innovations in service sector has not been transmitted into tourism [Hjalager 2010]. Camison and Mir [2012] indicated incompatibility between current needs of tourism sector and the Schumpeterian approach towards innovations. Sector’s specificity includes importance of location and delivery methods, key role of individuals providing services, short life cycle of innovations, heterogenous demand, and low R&D spending [Phan 2007; Khan and Khan 2009; Ottenbacher 2007], all of which should be reflected in the research on innovations. What seems to be especially important is the relationship between innovations and the economic performance of tourism enterprises [Nicolau & Santa-Maria, 2013].

Literature review

In the present research SALSA method [Booth, Papaioannou, Sutton, 2012] was used to systematise the review of literature. The approach consists of four stages preceded by scoping research. Keywords picked up for the research covered: “innovation”, “novelty”, “improvement”, “market value”, “firm value”, “value creation”, “investment valuation”, “tourism enterprise”, “hospitality”. Process resulted in selecting 72 publications, published between 1999 and 2013 (state for 19 November 2013). Sample included 58 articles, 12 conference papers and 2 books. However the selection procedure allowed 43 papers to be rejected, leaving the total of 29 for further analysis.

The systematic literature review leaded to extracting information policy as a variable moderating the relation between innovation and company’s market value. The problem is crucial when company updates information after releasing initial innovation announcement [Sorescu, Shankar i Kushwaha, 2007]. In such way there are several announcements concerning one innovation, all delivering new pieces of information.

In present research the communication variable was coded as the number of announcements referring to a particular innovation. The main hypothesis is stated as follows: companies’ information policies differentiate innovation’s impact on tourism enterprises market value.

Method

The three countries were selected basing on The Global Innovation Index [2014]. Poland was the representative of low innovators, Italy as the middle one and Sweden as the country with highly innovative economy. Innovations were represented by companies’ press releases concerning innovations. Only listed companies were taken into consideration, thus their value was represented by market valuation. In order to study the relationship between tourism enterprise market value and innovation two approaches were applied: event study to determine short-term investors’ reaction and buy-and-hold abnormal return to assess the long-term one. The time scope was determined as 2008 – 2013 due to empirical evidence from previous research [Szutowski, Bednarska 2014].

Results

The research aimed at verifying how company’s information policy differentiates innovation’s impact on market value. The study concentrated on tourism enterprises listed on stock exchanges in Poland, Italy and Sweden. In the case of every country two portfolios were created. The first one comprised innovations described by a single announcements and the second one contained innovation announcements, which were updated over time. Jointly six portfolios were created.

The number of innovations described by a single announcement varied from one country to another. In Poland 76,5% of innovations were described by a single message. Such poor information was the case in 50% of innovations in Italy, and 60% in Sweden. It signifies companies’ more pro-informational policies in Italy and Sweden than in Poland.

In short-term seven different event-windows for every country were analysed. Thus jointly 21 cases were studied. Thirteen times the single innovation announcements produced greater ACAR than the updated announcements. It was six times the case in Poland, two times in Italy and five times in Sweden. The precise data is presented in table 1.

Table 1.

Short-term market value changes due to updated and single innovation announcements

 

Poland

Italy

Sweden

 

Single

Updated

Single

Updated

Single

Updated

Event day

0,57%

0,00%

-1,77%

2,54%

0,15%

-0,11%

 +/- 1 day

0,52%

-1,84%

-1,92%

2,65%

1,13%

0,40%

 +/- 2 days

0,15%

-1,65%

-2,67%

2,39%

0,09%

2,82%

 +/- 10 days

2,14%

-2,21%

1,74%

-1,49%

3,59%

1,38%

0/+1 day

0,21%

-0,60%

-2,15%

2,82%

0,24%

-0,39%

0/+2 days

-0,10%

0,60%

-2,30%

2,36%

-0,54%

0,91%

0/+10 days

-0,58%

-2,28%

2,29%

-0,89%

2,65%

1,77%

Single – one announcement describing innovation; Updated – several announcements describing innovation

Source: own development

The analogical procedure was performed for the long-term relation between innovations and market value. Three windows differing in length were studied, thus jointly 9 cases were analysed. Seven times the higher ACAR resulted from updated portfolios. The opposite was the case only two times. The precise information is delivered in table 2.

Table 2.

Long-term market value changes due to updated and single innovation announcements

 

Poland

Italy

Sweden

 

Single

Updated

Single

Updated

Single

Updated

1 month

4,51%

5,11%

-0,13%

0,43%

-1,82%

-1,65%

6 months

3,01%

21,71%

-3,52%

7,29%

-3,47%

-5,40%

1 year

3,86%

27,31%

0,20%

13,70%

-6,36%

-10,88%

Single – one announcement describing innovation; Updated – several announcements describing innovation

Source: own development

The last stage of the research was to verify the statistical significance of the results. The one-way analysis of variance (ANOVA) was performed assuming the p-value at the level of 0,01.

Firstly the ACARs generated by innovations described by single announcements were compared in Poland, Italy and Sweden. In the short-term no statistically significant difference was calculated for companies listed in Poland and Sweden. In the long-term the difference between Italian and Swedish companies was not significant. The other differences were statistically significant at the p-level equalling 0,01.

Secondly the ACARs caused by the innovations described by several announcements were compared in the three countries. In the short-term no statistical significant differences were calculated. The opposite was the case in the long-term, the differences between countries were all significant at the p-level equalling 0,01. Thus the hypothesis was partially, positively verified.

Summary

The study aimed at verifying the moderating role of tourism enterprises information policies on the relation between innovations and companies’ market values. Event-study and buy-and-hold abnormal returns methods were applied. It was calculated that information policy is one of the factors affecting the relation between innovations and tourism enterprises market value. However the small sample prevents the generalisation of such results. Thus the enlargement of the special scope in order to gather more observations in further research seems beneficial.

References:

  • 1. Booth, A., Papaioannou, D., Sutton, A., 2012, Systematic Approaches to a Successful Literature Review, Sage, London
  • 2. Camisón, C., Monfort‐Mir, V., 2012, Measuring innovation in tourism from the Schumpeterian and the dynamiccapabilities perspectives, Tourism Management, 33 (4), pp. 782-783
  • 3. Hjalager, A., 2010, A review of innovation research in tourism, Tourism Management, 31 (1), p. 1
  • 4. Khan, M., Khan, M., A., 2009, How technological innovations extend services outreach to customers.
The changing shape of hospitality services taxonomy, International Journal of Contemporary Hospitality Management, 21 (5), pp. 511;
  • 5. Ottenbacher, M., 2007, Innovation management in the hospitality industry: Different strategies for achieving success, Journal of Hospitality & Tourism Research, Issue 3, pp. 439
  • 6. Phan, M., 2007, Innovation de services: étude de cas du Plaza Athénée Paris, Décisions Marketing, 48 (4), pp. 10
  • 7. Schumpeter, J., 1939, Business cycles a theoretical, historical, and statistical analysis of the capitalist process, McGraw-Hill Book Company, New York-Toronto-London.
  • 8. Sorescu, A., Shankar, V., Kushwaha, T., 2007, New Products Preannouncements and Shareholder Value: Don’t Make Promises You Can’t Keep, Journal of Marketing Research, Vol. XLIV, August, pp. 468-489
  • 9. Szutowski, D., Bednarska, M., A., 2014, Short-term effects of innovations on tourism enterprise market value: event study approach, [in:] Dias, F., Oliveira, S., Kosmaczewska, J., Pereira, A., New Trends in Tourism Research – A Polish Perspective, Tourism Research Group of Polytechnic Institute of Leiria, Portugal.
  • 10. The Global Innovation Index, 2014 Country Rankings, https://www.globalinnovationindex.org/content.aspx?page=data-analysis (1.9.2014).
Комментарии: 2

Мороз Людмила Ивановна

Тема актуальная и интересная. Действительно, информационная политика является первостепенным фактором влияния на результативность инноваций в туристическом бизнесе. Желаю дальнейших успехов. С уважением, Мороз Л.И.

Тойво Таннинг

Very interesting and actual article. Good luck in further studies! Sincerely, ToivoTanning
Комментарии: 2

Мороз Людмила Ивановна

Тема актуальная и интересная. Действительно, информационная политика является первостепенным фактором влияния на результативность инноваций в туристическом бизнесе. Желаю дальнейших успехов. С уважением, Мороз Л.И.

Тойво Таннинг

Very interesting and actual article. Good luck in further studies! Sincerely, ToivoTanning
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