This research interpreted hotel companies’ IC disclosure data
using the S-D Logic framework rather than theoretical frameworks
based on the goods-dominant logic (G-D Logic) that underlies
conventional business practice and research protocols. Our paper
contributes to the tourism management literature in several ways.
It is the first to apply S-D Logic to interpret voluntary IC disclosures
made by hotels in their annual reports. Second, our paper provides
fresh insights into managing IC for competitive advantage in the
hotel industry and finally, we further demonstrate the usefulness of
S-D Logic for tourism management.
As a preliminary study this research has some important findings.
Frequently disclosed IC items supported the centrality of the
service experience in the hotel industry, the interdependence of
multiple organisations and actors within a hotel’s network, and the
overall coordination of the value-creation network. However, we
conclude that the generic IC disclosures made by these hotels deny
the potential capacity for value-creation to be gained from better
measuring (and therefore managing) the specifics of brands, guests,
and employees.
Given the importance of intangible assets in today’s environment,
the fundamental challenge for hotel management lies in
disclosing and managing that capital responsively, according to
changing constructions of value within the hotel’s network. Implicit
in this type of management are the twin needs for full information
on value construction and for relational processes that communicate
evolving value propositions and accommodate change.
According to S-D Logic, service is a process of integrating
a company’s resources in the co-creation of value. This involves the
application of operant resources such as IC to co-create value in
such a way that management recognises and maximises the hotel
company’s competitive advantage. Converting operant resources
into competitive advantage under S-D Logic requires a new model
of business strategy concerned with developing IC resources within
a dynamic system of interrelationships. We contend that S-D Logic
can help hotel companies better understand and manage the
holistic network of relationships to create more sustainable
competitive advantage.