Structural Equation Model of Development Strategies Affecting the Performance of Medium-sized Hotels in Phra Nakhon Si Ayutthaya
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Abstract
The intense competition within the tourism industry in Phra Nakhon Si Ayutthaya Province has significantly constrained the service delivery and competitive capabilities of medium-sized hotel businesses. Consequently, it is necessary to investigate structural service development strategies to enhance operational performance and achieve sustainable efficiency. This research aimed to: 1) examine service development strategies for medium-sized hotels in Phra Nakhon Si Ayutthaya, and 2) analyze and validate the structural components of the strategic service development model for medium-sized hotel businesses; and develop a Structural Equation Model (SEM) of service development strategies and their effects on the performance of medium-sized hotel businesses. A mixed-methods research design was employed, starting with a qualitative phase followed by a quantitative phase. The population comprised medium-sized hotels in Phra Nakhon Si Ayutthaya. A purposive sampling was conducted to obtain 150 hotels (three respondents per hotel), totaling 450 respondents. Data were analyzed using Confirmatory Factor Analysis (CFA) to test the relationships and influences between indicators and model components on business performance of the medium-sized hotels in Phra Nakhon Si Ayutthaya. Findings revealed that among service development strategies, "exceeding customer expectations" was ranked at a high level as the primary priority. Regarding the quality of relationships, "customer trust" received the highest level of agreement. The results of the Confirmatory Factor Analysis confirmed that the structural model is consistent with empirical data, affirming that service development strategies exert the highest total influence on business performance. The structural model demonstrated acceptable fit based on six key indices: χ²= 2205.045 df = 610 χ²/df = 3.615 CFI = 0.819 TLI = 0.803 RMSEA = 0.079; RMR = 0.032 Hoelter = 450. This research provides an empirically validated service strategy prototype, offering a proactive framework for entrepreneurs to enhance competitive advantage and drive tangible growth in terms of policy, revenue, and customer satisfaction.
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