TheOrganisationalGapModel forHotelManagement Maja Uran This paper describes the developmentof the organisational gap model forhotelmanagement.Itdescriesamanagementmeasurementinstru- mentthat helpsto assessthe3 organizational service gapsthat are pre- conditions for delivering service quality (the positioning gap, specifi- cation gap and evaluation gap). The described theoretical model was constructed based upon the four organisational gaps of the Parasura- man et al. service quality model, then redefined and reassessed. Data were gathered on the sample of500 questionnaires from the Slovenian hotelindustryandanalysedwithexploratoryfactoranalysisandstruc- turalequationmodelling.Theresultscanbeusefulguidelinesforhotel managementonhowtoimprovetheservicedeliveryprocess. Key Words: servicequalitymodel,organisationalgaps,multivariate analysis,hotelindustry jel Classification:m1 ,l83 Introduction The business environment in the hotel industry is highly competitive, each hotel directly or indirectly competing with another hotel. The highly competitive environment prompts hotel managers to meet their customers’expectationsasforaspossibletoenablethesurvivalandsuc- cessofthebusiness(Ivankoviˇ c2005 ,137 ).Inordertocreateasustainable advantage, firms seek to develop core competencies: unique combina- tionofprocesses,skillsand/orassets(Kandampully2007 ;Knowles1999 , 64 ). As competitors move more closely together in terms of product quality, it is the service quality, developed by these core competencies, which will be used more often to create a competitive distinctiveness (Zeithaml,Parasurman,andBerry1990 ,149 ;Olsen,Ching-YickTse,and West 1992 , 163 ; Harrington and Lenehan 1998 ; Groenroos 1990 ;Johns 1999 ;Kandampully,MokandSparks,2001 ;Uran,2004 ;Uranetal.,2006 ; Kandampully 2007 ). Service quality can be utilized in determining how a business produces and delivers its products and services; in how it manages its employees; and in how it builds astrong brand identity and DrMajaUranisanAssistantProfessorattheUniversityofPrimorska, FacultyofTourismStudiesPortorož,Slovenia. ManagingGlobalTransitions8 (4 ):405 –422 406 Maja Uran reputation.Itisaprocessthatincludesboththeresponsivenessoftheser- vice and the consistency of the service delivery. Firms that learn how to match service quality as an operational approach with their competitive methodscancreateaformidableandsustainablecompetitiveadvantage. The construct service quality has been the focus of many scholarly studies (Lehtinen and Lehtinen 1982 ; Lewis and Booms 1983 ; Parasura- man, Zeithaml and Berry1985 ; Cronin and Taylor 1992 ;T eas1993 ; Kan- dampully, Mok and Sparks, 2001 ; Uran, 2004 ;Uranetal.,2006 ; Kan- dampully2007 ).Thereisalist,whichcoversthefindingsofinternational researchers regarding service quality and what characterises successful servicecompanies: The managing director should be the leading practitioner of a professional and operative leadership. That means, among other things, creating and spreading a quality policy, developing chal- lenging goals, plans and rituals, and dividing the responsibility in theorganisation. Service quality has become a strategic area of development and an importantpartofthebusinessplanandthevisionofthecompany’s development. Itisalsoacentraltaskformanagement atalllevels. Successful service companies are characterised by a multiple focus. They manage to satisfy the needs and expectations of customers, co-workers and owners at the same time. They emphasise quality inresults,processesandprerequisites forthe serviceandhowthese interact. Thecustomerorientation isespeciallyimportant. Quality is considered as everyone’s responsibility. Every co-worker hasthe knowledge, resourcesandauthority toachieve highquality. Theco-workersalsocontrolthequality oftheirownwork. Service development and service construction, to build-in prereq- uisites for the right quality when developing new services is a key- issue. Emphasis on the development of quality in all processes in the or- ganisation.Thepointistopreventfaults,notjusttodetecttheones alreadymade. Todevelopservicequalityisregardedasmaybethemostimportant measureto takeinorder toimprove productivity and profitability. Emphasis on complaint management. Detecting customer dissat- isfaction, learning to repair mistakes, compensate and explain the causeofthequality failure. ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 407 Emphasis on the co-workers commitment to customer-perceived totalquality. Increased emphasis on systematic measuring of the service quality. Measuringquality fromthepointofviewofcustomers,co-workers andotherinterested parties. In the hotel industry, products are produced and consumed simulta- neously, whilein other industries production andconsumption aresep- arated intimeandspace.Forthisreason, ahighquality standardishard to achieve. Another issue is direct contact between employees and con- sumers, which inevitably leads to errors that can easily contribute to the possible collapse of the system. If it is accepted that these errors are in- evitable, then the goal is to minimize them. The battle for quality de- termines the path that everyone in the tourist industry needs to follow. Using a quality system, hotel managers try to eliminate errors and im- prove the guest’s perception of quality issues. The usual perception is thatagoodqualityhotelisonewithfivestars,butnowadaysitisdefined differently. Quality is not defined by category, but by the capability to deliver products and services that have district characteristics, and are designed in a way to please the guests and fulfil their needs (Groenroos 1990 ). Since 1985 , most of the debate has centred around the conceptualiza- tionandmeasurementofservicequalitybasedonthegaptheorystream ofresearch(Parasuraman,ZeithamlandBerry1985 ;Zeithaml,Berryand Parasuraman 1988 ; Zeithaml, Parasuraman and Berry 1990 ; Zeithaml, BerryandParasuraman1993 ;Kandampully,MokandSparks,2001 ;Uran, 2004 ;Uranetal.,2006 ; Kandampully 2007 ). It is evident from the liter- ature that most of the empirical work had been focussed on the gap 5 perception-minus-expectations framework as operationalized by Para- suraman, BerryandZeithaml(1985 ). However, the management of service quality concerns wider issues of organizational structure, philosophy and culture that can also in- fluence service delivery and ultimately customer perceptions of service quality (Bowen and Schneider1988 ; Groenroos1990 ;Heskett1987 ; Kan- dampully, Mok and Sparks, 2001 ; Uran, 2004 ;Uranetal.,2006 ; Kan- dampully2007 ). The discrepancy between expectations and perceptions isreportedtobecausedbyaseriesoforganizationalbehaviouralfactors. Amodelknownasthe‘gapsmodel’or‘servicequalitymodel’hasbeen developed to identify problems in service delivery (Zeithaml, Parasura- Volume 8 · Number 4 · Winter 2010 408 Maja Uran man, and Berry 1990 ), which defines quality service through customer satisfaction. The idea is to identify problems and mistakes through rec- ognizinggapsinthemodelandtryingtoavoidthem.Hotelmanagement can influence service delivery by narrowing organizational gaps and by improving servicequality and customer satisfaction. The service quality modelassumesthatthedifferencebetweentheservicethatthecustomers expectandtheservicetheyactuallygetisduetoorganizationalgaps(Zei- thaml, Parasuraman, and Berry 1990 ; Candido and Morris 2000 ;Mc- CarthyandKeefe1999 ).Thesegapscanbesplitinto(Uran2003 ): positionalgap specification gap serviceexecutiongap communicationgap evaluationgap Studying the models shows that the model of Zeithaml, Berry and Parasuraman (1990 ) gives the best insight into the organisation and its methodological and conceptual factors, as well as the correlation with gaps in quality service. Using the four gaps of the basic quality ser- vice model, it is possible to explain inconsistencies in delivering the ex- pectedqualityoftheservice.Byconsultingtheliteratureandconducting a preliminary quality study of organisational gaps, the author discov- ered some weaknesses in the widely used Zeithaml, Berry and Parasura- manmodel andtheneed toextend itusingtheoretical supportfromthe model byCandid and Morris (2000 ).This particular modelidentifies14 gaps in quality service. Even though this author believes that the afore- mentioned gaps could be downsized into the model presented by Zei- thaml, Parasuraman, and Berry (1990 ), some elements of the gaps were presented moreaccurately andextensively. The extended service quality model (Zeithaml, Berry and Parasur- aman 1988 ; 1990 ) was the framework used for developing the organi- sational gap model for hotel management. The original and extended model of Parasuraman, Parasuraman, and Berry (1988 ;1990 )modelhas 4 organisational gaps with16 dimensions consisting of50 elements. De- rived from Zeithaml, Berry and Parasuraman’s (1990 ) extended service quality model, andbaseduponanin-depth reviewofover300 literature units (Uran 2003 ) on service quality management and existing service quality models,weareabletodevelop themodel.Thetheoreticalmodel comprises 26 dimensions with more than 100 elements stemming from ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 409 the 5 organisational gaps. The focus of this paper is on the three gaps specifically aimed at hotel management rather than personnel, namely the positioning gap, the specification gap and the evaluation gap. More specifically, the goal of this paper is to test the validity of an instrument designed toassesstheseservicegapsintheSlovenian HotelIndustry. thepositioninggap The hotel management perceptions of guest expectations with regardto the desired quality of a hotel service may not be in sync with real cus- tomer expectations. Zeithaml et al. (1988 ) suggest that the size of the positioning gap in any service firm is a function of marketing research orientation, upward communication, and levels of managers. Candido and Morris (2000 ) stated that the gap is defined as a management lack of understanding of customer’s expectations and perception of the ser- vice. It is motivated both by lack of initiatives to listen to the customer andbythelackofcorrectunderstandingwhentheseinitiativesaretaken. The authors suggested that the gap could be further enlarged to include a lack of understanding of other external information, namely a service positioning gap or service quality strategy. The service quality strategy identifies the organization’s competitive scope and its concepts of qual- ity, through a selection of, and positioning on, the fundamental quality dimensions it wants to compete with. The service quality strategy is a set of guidelines that provides orientation for everyone in the organi- zation. Similar dimensions to this gap are noted by McCarty and Keefe (1999 ), who acknowledge that the gap can be caused by a lack of con- sumer orientation, management commitment to service quality, service quality leadershipandmission/visionclarity. The size of the positioning gap in any hotel is proposed to be a func- tion of: marketing research orientation, customer orientation, service quality improvement leadership, management’s commitment to service quality and concepts of quality. Table 1 provides an overview of each of theabovefactors. thespecificationgap Gap 2, the so-called management perception-service quality specifica- tion gap, occurs when hotel management correctly perceives guest ex- pectations, but is unable to translate this information into clear spec- ifications. Garvin (1988 ) and Zeithaml, Parasuraman, and Berry (1988 ; 1990 ) suggest that four factors may account for this discrepancy,includ- Volume 8 · Number 4 · Winter 2010 410 Maja Uran table 1 Factorsofthepositioninggap Dimension Elements 1.Marketingresearch orientation 1.Amountofmarketingresearch 2.Usageofmarketingresearch 3.Collectinginformationonguest’ssatisfaction 4.Collectinginformationonguest’sexpectations 5.Extentofdirectinteractionbetweenmanagersand customers 2.Customerorientation 6 .Tendencytoservicequality 7.Willingnesstochange 3.Management’s commitmenttoservice quality 8.Servicequalityresponsibility 9 .Motivating forservicequality 10 .Responsibilityforinnovationandimprovement 11.Priorities 12 .Resourcecommitmenttoquality 13 .Existenceofinternalqualityprograms 4.Servicequality improvementleadership 14 .Designingtheoperationsaccordingtocustomer’s expectations 15 .Discrepancybetweenexpectedandperceivedservice 16 .Understandingtheworkingconditions 17.Opennesstochange 18 .Communication 19 .Helpingemployees 20 .Decisionmakingstyle 21 .Spreadingthemission/vision 22 .Understandingthemission/vision 23 .Resourcescommitmenttomission/vision 5.Conceptsofquality(–) 24 .Servicequalityasabusinessgoal 25 .Employeedelegation 26 .Servicequalityawareness 27 .Adequacyofservicequalityconcepts 28 .Meaningofservicequalitydimensions 29 .Goalsetting 30 .Systemofpreventingservicedefects 31.Effectivenessofservicequalityconcepts ing: management commitment to service quality, existence of goal set- ting, task standardization and perception of feasibility. Specifications, along the service quality dimensions, are useful to define what quality is. Frequently, organizations do not possess any kind of formal speci- fication, which results in aggravated service variability and lower qual- ity (Zemke and Schaaf 1989 ). Specifications are required to guide per- sonnel in their activities. Specifications are also required as a means of ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 411 comparison for effective quality evaluation. Candido andMorris (2000 ) assert that this gap exists because of a lack of analysis, design and def- inition of service quality specifications, or when specifications exist be- cause of an inconsistency between those specifications and the strategy content or the perceptions that management held of customers’ expec- tations. Several more factors can create this gap, including: short-term profit orientation (Zeithaml, Parasuraman, and Berry1988 ;1990 ), inter- nalcommunication-levelsofmanagement(Zeithaml,Parasuraman,and Berry1988 ;1990 ; Groenroos1990 ; Candido and Morris2000 ),poor ser- vicedesign,andabsenceofcustomer-driven standards. Thesizeofthespecificationgapinanyhotelisproposedtobeafunc- tion of: designing specifications, task standardisation, perception of fea- sibility,levelsofmanagement,hrm andintegration/coordination. Table 2 provides anoverviewofeachoftheabovefactors. theevaluationgap The perception gap and its instrument (servqual )aretheonlyservice qualityevaluationinthemodel.Itisnecessarytogainsomeinformation about service quality before the so-called moment of truth or service consumption. After assessing the model, the need for inclusion of the evaluation gap became clear. The thesis was confirmed as well by the CandidoandMorris(2000 )gapchartingefforts.Theyfounditnecessary to have the means of comparison for effective quality evaluation. These facts are supported McCarthy and Keefe (1999 ), and others. The size of theevaluation gapinanyhotelisproposedtobeafunctionof: 1. measuring performances 2. feedback Table 3 provides anoverviewofeach oftheabovefactors. Methodology Based on the literature above, an instrument was designed to assess organisational gaps in the Slovenian hotel industry. Antonˇ ciˇc( 2000 ) stresses the importance of validation of the constructs that have an Americanbasis,inSloveniancontexts.Thisiswhyreasonweapproached the qualitative analysis of theoretical concepts by employing 15 experts from the Slovenian hotel industry. The results of qualitative analysis provided the basis for the final operationalisation of the measurement instruments. This analysis also pointed out that the theoretical concept Volume 8 · Number 4 · Winter 2010 412 Maja Uran table 2 Factorsofthespecificationgap Dimensions Elements 1.Designingspecifications 1.Existenceofformalspecifications 2.Specificationsasabusinessefficiencymeasure 3.Servicespecificationsdesignprecision 4.Havingenoughinformationforspecificationdesign 5.Consistencybetweenspecificationandbusiness strategyandconsumerexpectations 6 .Servicespecificationdirectedtowardslowcost 2.Taskstandardisation 7.Usageofautomatization 8.Necessityofinvestmentinqualitysystems 9.Operationsprocedures 10 .Amountofresources 3.Perceptionoffeasibility 11.Costperceptions 12 .Totalservicefittoconsumers’expectations 13 .Perceptionofservicequality 4.Levelsofmanagement 14.Numberoflayers 15 .Flatteningandinvertingthehierarchicalpyramid 16 .Gettinginformationfromemployees 17.Meansofcommunication 18 .Jointproblemsolvinganddecisionmaking 5.Integration/coordination 19 .Cooperationbetweenmanagers 20 .Control/supervision 21.Compatibility 22 .Lack ofcoordination 23 .Connectionbetweensubjectsintheorganisation 24 .Educationandjointprojects 25 .Cooperationwithotherorganizations 6 .hrm 26 .Selection 27.Levelofautonomy 28 .Confidence 29 .Meaningofeducation 30 .Delegation 31 .Helpingemployees 32 .Perceptionsofmanagementstyle cannot be tested directly, but should be divided into two models. First, the service quality model for the hotel management with the following gaps: positioning gap, specification gap and evaluation gap. Here a 7- point Likert scale was used. And the second, a model for the contact personnel with the service delivery gap and the communication gap, or a 5-point Likert scale. This paper presents only the first model. The sample,datacollectionanddataanalysis methodwerechosen. ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 413 table 3 Factorsoftheevaluationgap Dimensions Elements 1.Measuringperformances 1.Benchmarkingmeasures 2.Responsibility 3.Self-evaluation 4.Servicequalityperception 5.Progress 2.Feedback 6 .Timeneededforcollectinginformation 7.Spreadinginformationaboutefficiency sample Data were collected by using the mail survey administered in Slovenia: 38 hotel companies were included, comprimising 95 % of all employees intheSlovenian HotelIndustry.Altogether,500 questionnaires forhotel managers were sent, for all the levels of management, while 100 ques- tionnaries were addressed directly to the general managers. Some33 .6 % ofthesamplereturnedusablequestionnaires. dataanalysis Thegathereddatawerethenanalysedwiththechosenstatisticalmethods as suggested by Zeithaml, Berry,and Parasuraman (1988 ). For exploring the gap structures the exploratory factor analysis (efa ) was used with the support of spss software. To confirm the gap structures the struc- tural equation modelling (sem ) was employed with the support of eqs software. Each gap was explored individually byefa until the appropri- ate structure was reached. This phase resulted in the integrated organi- sationalgapconstructthatwasthentestedwiththesem . Results Theresultsaredividedinto3 parts.First,theresultsofefa arepresented. Specialattention isdedicated totheconvergentanddicriminantvalidity of the construct. Second, the confirmation process of the constructs is presented. Finally, the end result of the organisational gap assessment forSlovenian hotelmanagement ispresented. exploratoryfactoranalysis Alltheelementsdefinedintheoryforeveryidentifiedgapwereused(po- sitioning gap with6 dimensions and31 elements, specification gap with 6 dimensions and 32 elements, and evaluation gap with 7 elements) for Volume 8 · Number 4 · Winter 2010 414 Maja Uran conductingefa by using the overall sample (163 cases). Before the anal- ysis,allmeasurementitemswereexaminedfornormality.Nosignificant departuresfromnormalitywerefound.Theexistenceofsufficientcorre- lationsisamorecriticalissue.Theappropriatenessoffactoranalysiswas determined by examining the correlation matrix of gap items. The ma- trix had a sufficient number for justified usage of efa .TheBartletttest of sphericity, which statistically tests the presence of correlations among underlying variables, showed that the correlation matrix had significant correlations (significant at 0 .05 for all items as well as retained items). The Kaiser-Meyer-Olkin measure of sampling adequacy was 0 .749 for retaineditems, whichsuggestsmediumadequacy. The number of factors to be extracted was determinedapriorion the basisofthenumberofdimensions.Theconstructhad13 dimensions.Be- cause the gap dimensions were identified according to the different gap models(neverempiricallytested),weassumedthattheinitialnumberof the factors would be lower. The number of factors was then determined byusingthelatent root,percentage ofvariance andscreetestcritea.The screeplotofinitialrunindicatedthat2 to8 factorsmaybeanappropriate number,whereasthelatent rootcriterion indicated5 factors(eigenvalue above1).Thepercentageofvariancewiththefinalnumberofitemsfor2 factorswas47 .447 %to69 .583 %forthe5-factor solution. Three-to-eight factor solutions were tested. In the end, the solution withhighestnumberofitemsandlowestnumberofthefactorswascho- sen, as suggested by Hair et al. (1998 ). The majority of the items were excluded because of low communalities or factor loadings. Some were excluded because they were loaded on the wrong dimensions, or else on two dimensions. The retained solution had 4 factors with 18 items (eigenvalue 1.280 , percentage of variance 63 .478 %). The communalities of retained items were above0 .400 (with the exception of itemsp15 and p20 ).Theretained4 dimensions,with18 items of organisational gapfor hotelmanagement, arepresented intable4. The factors were named: marketing research orientation (f1 ), ser- vice quality improvement leadership (f2 ), designing specifications (f3 ) andmeasuringresults(f4 ).Alldimensionshavetheoreticalsupportand presentkeyfactorsoftheorganisationalgapforhotelmanagement. confirmatoryfactoranalysis A confirmatory factor analysis was conducted in order to validate the findings of efa and to examine the convergence of the organisational ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 415 table 4 Factorloadingsoftheorganisationalgapforhotelmanagement nkv -f1 nkv -f2 nkv -f3 nkv -f4 Marketingresearchorientation(nkv -f1 ) p3 Collectinginformationonguest’s satisfaction 1.031 p1 Amountofmarketingresearch 0 .608 Servicequalityimprovementleadership(nkv -f2 ) s28 Confidence 0 .861 p9 Motivatingforservicequality 0 .723 s29 Meaning of education 0 .704 s20 Control/supervision 0 .668 s31 Helpingemployees 0 .661 s24 Educationandjointprojects 0 .656 s27 Levelofautonomy 0 .635 p20 Decisionmakingstyle 0 .632 s17 Meansofcommunication 0 .521 p28 Meaningofservicequalitydimensions 0 .410 p15 Discrepancybetweenexpectedand perceivedservice 0 .322 Designingspecifications(nkv -f3 ) s2 Specificationsasabusinessefficiency measure 0 .788 s3 Servicespecificationsdesignprecision 0 .635 Measuringresults(nkv -f4 ) e2 Responsibility 0 .712 e7 Spreadinginformationaboutefficiency 0 .657 e5 Progress 0 .626 gap for hotel management dimensions. The methodology suggested by Antonˇ ciˇc( 2000 ) was used and five model fit indices were calculated: nfi (normedfitindex),nnfi (non-normed fitindex),cfi (comparative fit index), srmr (standardized root-mean-square residual) and rmsea (root-mean-square error ofapproximation). Twosampleswereused,oneforanalysistheotherforvalidation.Con- firmatory factor analysis confirmed the above findings on the construct of dimensionality. All items had positive, high and significant coeffi- cients. No items were found to differ between the samples in terms of Volume 8 · Number 4 · Winter 2010 416 Maja Uran table 5 Theorganisationalgapforhotelmanagementdimension’sscaleconvergence Dimensions (1)( 2)( 3)( 4)( 5)( 6)( 7)( 8)( 9 ) Marketingresearchorientation 20 .7800 .608 1 .031 ***** Designingspecifications 20 .765 0 .635 0 .788 ***** Measuringresults 30 .705 0 .633 0 .765 1 .000 **** Servicequalityleadership 11 0 .883 0 .322 0 .861 0 .937 0 .850 0 .950 0 .050 0 .143 Mean 0 .783 0 .550 0 .861 Total 18 (8) 0 .798 0 .322 1 .031 0 .9040 .930 0 .9600 .050 0 .060 notes Column headings are as follows: (1)no.ofvariants,( 2) Cronbach Alpha, (3) Interval stand. loadings min., (4) Loadings max. Index: (5) nfi ,( 6 ) nnfi ,( 7) cfi (8) srmr ,(9 )rmsea . coefficients and errors. Statistical information on each dimension’s in- ternal consistency (Cronbach alpha reliability statistic) and convergence (model goodness-of-fitindices) basedon overall sample(N =163 )isin- dicated intable5. The marketing research orientation scale showed very good reliabil- ity (Cronbach alpha0 .780 ) and convergence in terms of coefficients (all were positive, high and significant). Model fit indices were not calcu- lated, due to the low number of items (less than3). The designing spec- ification scale showed very good reliability (Cronbach alpha 0 .765 ) and convergence in terms of coefficients (all were positive, high and signif- icant). Model fit indices were not calculated, due to the low number of items (less than 3). The measuring results scale showed good reliabil- ity (Cronbach alpha0 .705 ) and convergence in terms of coefficients (all were positive, high and significant). Only nfi was calculated and it de- mostrated goodconvergence in terms of the goodness-of-fit indice. The service quality improvement leadership scale showed very goodreliabil- ity (Cronbach alpha0 .883 ) and convergence in terms of coefficients (all were positive, high and significant) and some of the goodness-of-fit in- dices(nfi andcfi over0 .90 ,nnfi isabove,butstillgood,srmr is0 .05 , asrecommended, criticalisjustthermsea value). Overall,thedimen- sions’ scale showed good reliability and good convergence in terms of coefficients, and moderately good convergence in terms of model fit in- dices. Theorganisationalgapsforhotelmanagementdimensionsweretested for convergent and discriminant validity together in the organisational gap for the hotel management construct structural model, where di- ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 417 table 6 Theorganisationalgapforhotelmanagementconstructconvergentand discriminantvalidity Dimensions (1)( 2)( 3)( 4)( 5)( 6)( 7) Marketingresearchorientation(otr ) 0 .696 0 .540 0 .446 1 0 .191 0 .252 0 .397 Designingspecifications(os ) 0 .679 0 .493 0 .409 0 .191 1 0 .323 0 .439 Measuringresults(mr ) 0 .656 0 .449 0 .356 0 .252 0 .323 1 0 .291 Servicequalityleadership(viz ) 0 .746 0 .685 0 .665 0 .397 0 .439 0 .291 1 notes Fit index: nfi = 0 .904 , nnfi = 0 .930 , cfi = 0 .960 , srmr = 0 .050 , rmsea = 0 .060 .Models:(1)compositereliability,(2)varianceextracted,(3)varianceshared.Cor- relations: (4)otr ,(5)os ,(6 )mr ,(7)viz . mensions were modeled as first order latent constructs and correlated witheachother.Themodelshowedreasonablygoodfit:nfi0 .904 ,nnfi 0 .930 , cfi0 .960 ,with the exception of srmr0 .050 and rmsea0 .060 , all coefficients were found to be positive, high and significant (between 0 .507 and0 .862 ). These results were very similar across different control groups: size of the company, random split. The model reliability, vari- ancestatisticsandinter-dimension correlations areindicated intable6 . Twodimensions demonstrated goodcompositereliability –atorover thethresholdof0 .700 (Hairetal.1998 ),twowerejustalittlebelow.Vari- ance extracted was found to be somewhat below the threshold of 0 .500 for 2 dimensions. Correlations among the dimensions were all signifi- cantandrangedfrom0 .191 in0 .439 ,demonstratingconvergence,butnot redundancy,ofthedimensions.Overall,themodel’sfitindices,compos- ite realiability, variance extracted, and correlations indicate moderately good convergent validity. There is also evidence of discriminant valid- ity, because correlations are not too high (not over0 .70 ) and even more importantly,becausethevarianceextractedforeachdimensionishigher thanthevariancesharedwithotherdimensions. Multidimensionality of the organisational gap for hotel management constructwas alsotested bycomparingtherelative contributions oftwo models. The first is the model that includes only one common organ- isational gap first order factor (the one common factor model) and is basedonthe assumptionof unidimensionality oftheorganisational gap concept. The second is the dimensions-only model that is based on the assumptionofnon-unidimensionalityoftheorganisationalgapconcept. These 2 models are nested in the model with both dimensions and the commonfactor,amethodthatallowsforcomparisonofthemodels.The comparisonisshownintable7. Volume 8 · Number 4 · Winter 2010 418 Maja Uran table 7 Thedimensions-onlyvs.theonecommonfactormodel Dimensions (1)( 2)( 3)( 4)( 5)( 6)( 7) m1 :Onecommonfactormodel 145 .956 20 0 .448 0 .254 0 .467 0 .150 0 .197 m2 :Dimensions-onlymodel 25 .516 16 0 .904 0 .930 0 .960 0 .053 0 .061 m3 :Modelwithbothfactoranddim. 14 .491 11 0 .945 0 .962 0 .985 0 .048 0 .045 m1 –m3 :Contributionofdimensions 131 .465 4 0 .901 0 .820 m2 –m3 :Contrib.ofthecommonfactor11.025 5 0 .432 0 .174 notes Columnheadingsareasfollows:(1)χ 2 (allChi-squaressignificantat0 .001 ),(2) df,(3)nfi ,(4)nnfi ,(5)cfi ,(6 )srmr ,(7)rmsea . The one common factor model indicated overall poor fit and low fit relative to the dimensions-only model in all goodness-of-fit indices. Model fit indices of the dimensions-only model and model with both thedimensionsandthecommonfactoraresimilar.Thecontributionsof the2 modelsareshowninthelast2 rows in table4.BothChi-squaredif- ferncesaresignificant,indicatingthatbothmodelsmaycontributetoex- planatorypower.Howeverthenfi andnnfi fortwomodels’differences demonstrate that thecontribution of dimensions seems tobequite sub- stantial (nfi0 .901 ;nnfi0 .820 ), whereas the contribution of the overall factor seems to be rather minimal (nfi0 .432 ; nnfi0 .174 ). Overall, the one common factor model seems to be inferior to the dimensions-only model. This canbeconsidered astrong indication of multidimensional- ityoftheorganisationalgapforthehotelmanagementconstruct.Hence, theorganisationalgapforthehotelmanagementconstructdevelopedin this study can be seen as a good measure of the organisational gap for hotelmanagementthatcapturesbothdimensionalityaswellastheover- allsharedcharacteristics oftheorganisational gapforhotelmanagers.It presents all the necessary evidence for the existence of convergent and discriminant validity of theconstruct.Theorganisational gapmodelfor hotelmanagement has4 dimensions with18 elements. theorganisationalgapmodelforhotelmanagement inslovenia The redefined organisational gap model for hotel management was testedintheSlovenianhotelindustryinordertoassessthesizeoforgan- isationalgapsinSlovenian hotels.Theresultsarepresented intable8. According to the result of the research, the biggest problem of the Slovenianhotelindustryisthelackofdedicationofthehotelmanagersto define hotel service specifications (mean3.90 ). On the other hand, this ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 419 table 8 TheorganisationalgapofSlovenianhotelmanagement(163 cases) Elements/dimensions Min Max Mean p3 Collectinginformationonguest’ssatisfaction 275 .47 p1 Amountofmarketingresearch 375 .19 Marketingresearchorientation 5.33 p20 Decisionmakingstyle 275 .06 p9 Motivatingforservicequality 274 .93 p15 Discrepancybetweenexpectedandperceivedservice 375 .69 s28 Confidence 275 .73 s20 Control/supervision 275 .65 s31 Helpingemployees 276 .02 s24 Educationandjointprojects 375 .10 s29 Meaning of education 476 .31 s17 Meansofcommunication 275 .55 s27 Levelofautonomy 275 .72 p28 Meaningofservicequalitydimensions 376 .33 Servicequalityimprovementleadership 5.64 s3 Servicespecificationsdesignprecision 173 .48 s2 Specificationsasabusinessefficiencymeasure 174 .33 Designingspecifications 3.90 e2 Responsibility 175 .47 e5 Progress 174 .43 e7 Spreadinginformationaboutefficiency 375 .50 Measuringresults 5.13 is the area that can beaddressed and developed to increase service qual- ity. Still, the general assessment of the organisational gap of hotel man- agement (average value5.00 )is that,although the managers understand the meaning of conducting marketing research, of service specification, of performance measurement and of implementation of service quality systems, it is nevertheless a rare practice in Slovenian hotel industry for variousreasons. Conclusion The extended service quality model was the framework for assessing or- ganisational gaps.Theoriginalandextended Parasuraman’s etal.model has 4 organisational gaps with 16 dimensions with 50 elements. Due to Volume 8 · Number 4 · Winter 2010 420 Maja Uran the reason that the model was not tested in the tourism or hotel indus- try, or explored and confirmed with appropriate statistical methods, we decidedtoredefineandreassessthemodel.Basedonthein-depthreview of over300 literature units on service quality management and identifi- cation of the existing service quality models, we were able to construct the conceptoftheservicequality gaps. Becauseintheoriginalmodelservicequalityisevaluatedthroughgap 5 or the perception gap, we found it necessary to add the fifth gap in the service quality model- evaluation gap. It is essential to have supervi- sion and control – or better to say assessment – of the service delivery before the consumption of the services. The service quality gap theoret- ical concept consists of 5 gaps (positioning, specification, service deliv- ery,communicationandevaluation)thathave26 dimensionswithmore than100 elements.Thefocusofthispaperisonthethreegapsspecifically aimedathotelmanagementratherthanpersonnel,namelytheposition- ing gap, the specification gap and the evaluation gap. To overcome the weaknesses of prior researches, a complex research was undertaken to identify therepresentative structureanddimensions. Authors (Parasuraman et al.) of the extended service quality model suggestthatthemodelshouldbetestedwiththeappropriatemultivariate statistical methods such as factor analysis. Measures of the theoretical construct affecting each gap can be viewed as an indicator of that gap. Therefore, it is possible to recast the conceptual model in the form of a structural equations model. The model was tested by collecting data on the indicators of gaps through questionnaires and by analyzing data with exploratory factory analysis, and then confirming the structure of theconstructswithstructuralequation modelling. Theresultsofthisstudysuggestthattheassessmenttestedhereisboth valid and reliable. Clearly, although further testing is required, the find- ingsareneverthelessencouraging.IntheSloveniancontext,somedilem- maswererevealed.TheSlovenianhotelmanagersshouldputmoreeffort intoobtainingtherightinformationabouttheirguestsandplanningthe effective service quality systems. In order to fully use service quality as a competitive advantage, service positioning, specification and evaluation mustbefurtherexplored. References Antonˇ ciˇ c, B. 2000 . Intrapreneurship: Construct refinement and integrative modeldevelopment.p hd .diss.,CaseWesternUniversity. ManagingGlobalTransitions TheOrganisationalGapModelforHotelManagement 421 Bowen, D. E., and B. Schneider. 1988 . 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