The effectiveness of value- and calculation-based management controls in hotels

This study investigates the effects of the adoption of management controls on hotel performance. It examines the effectiveness of value-based controls and the interplay between such controls and the commonly adopted calculation-based controls (i.e., planning, budgetary and compensation controls) when moderated by family involvement. This research relies on data gathered from a survey of hotels in Brazil and online hotel reviews. The hypotheses are tested via partial least squares-structural equation modeling, and fuzzy set qualitative comparative analysis is used to refine the quantitative analysis. Overall, the results highlight the importance of value-based controls for hotel performance and reveal that the positive association between value-based controls and hotel performance is greater than that between calculation-based controls and hotel performance. This association is more pronounced when family involvement is higher. Finally, results indicate that planning and budgetary controls are more effective forms of control in hotels with low and no family involvement.