Clusters or networks: interorganizational relationships influence on Brazilian hotel performance

Purpose: Although interorganizational relationships are acknowledged as positive for tourism, studies on the subject fail to systematically analyze the joint effects of relationships with different types of organizations. The purpose of this paper is to analyze the influence of the interaction between different types of interorganizational relationships over a hotel firm’s performance. Design/methodology/approach: A structured questionnaire applied to hotel managers was used to assess hotel relationships. Hotel performance was assessed through Trip Advisor information. Structural equations modeling (SEM) was used for data analysis. Findings: Results reveal that only relationships with other hotels had a significant influence on performance. The competition had a negative effect on hotel performance, as well as on horizontal and support organization relationships. Relationships with support organizations presented a significant effect on the formation of relationships between companies (horizontal and vertical) and mediated the negative effect of competition over horizontal relations. Practical implications: Hotel relationships are idiosyncratic and path-dependent, hence monitoring and copying competitors’ relationships is not advisable. Hotels may improve their productive integration by relating with support organizations. From a destination management perspective, results show that support organizations facilitate interfirm relationships and productive integration within a destination. Originality/value: The paper systematically analyzes the influence of different interorganizational relationships and competition on hotel performance. Empirical results contradict some aspects of networks and clusters. Some relationships may have positive effects on destinations, but not on hotel firms. Additionally, support organizations play a central role on interfirm relationship formation and maintenance.