infonet-economy

Why did lodging corporations opt for the asset light model in the first place and why did they adopt it at different times? The answer to such questions could not only help further explore the fundamental question in strategy of why do firms’ strategy differ, but also provide insights to managers as to the implications of such strategic choices on corporate performance. Built around three stages and three propositions, the theoretical model proposed in this article integrates constructs from the managerial capability, isomorphism literature, the resource-based view, and Transaction Cost Economics (TCE) to depict the triggers of vertical disintegration. This model underlies the dynamics of a highly significant phenomena in hospitality industry: the development of the asset light model.