Structural Equation Model on Organizational Performance of Hotels in Region XII, Philippines

The study developed and tested a model of organizational performance of 446 hotel employees using structural equation modeling (SEM) as the fundamental statistical tool to analyze the relationship among the constructs covered in the study. The constructs consisted of total quality management, innovation capability, entrepreneurial orientation, and organizational performance of hotels in Region XII, Philippines. Relationships of the three constructs with organizational performance were established and supported the model in the final analysis. The model fit consisted of total quality management innovation capability, and entrepreneurial orientation as the predictors of organizational performance. The model also showed a positive relationship between the three exogenous variables and organizational commitment. The findings of the study confirmed the resource-based view (RBV) theory, which demonstrated that when top management identifies the strategy or competitive position that best utilizes internal resources and capabilities with external opportunities, the organization can hold several competitive positions.