Does quality management improve performance or vice versa? Evidence from the hotel industry

This paper has several aims: (a) to identify an empirical taxonomy of quality management (QM), (b) to assess whether more advanced QM hotels achieve better performance levels and (c) to analyse whether hotels with better performance levels have more advanced QM levels. This paper contributes to identify a taxonomy of QM in hotels showing the association between a particular level of QM and different performance dimensions. In addition, the paper sheds light on the possible selection effect in the hotel industry. The study finds that hotels with higher QM levels have better hotel guest satisfaction and employee satisfaction, efficiency and better business performance. It also shows that hotels with better performance levels develop QM to a greater extent. Accordingly, QM level is one factor among others that explain better performance levels in hotels. Also, good performance can facilitate the implementation of QM practices.