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How Constitutive Legitimation, Sociopolitical Legitimation, and Competition Affected Foundings of Singapore Hotels, 1832 to 1997

National University of Singapore, albertteo{at}nus.edu.sg

This study examines the evolution of the hotel industry in Singapore from 1832 to 1997. Specifically, the methodology of organizational ecology is used to analyze the pattern of foundings (i.e., entries) in the industry. The analyses indicate that constitutive legitimation (taken-for-granted status) has a positive impact on the founding rate, whereas competition has a negative effect. There is also evidence that various processes of sociopolitical legitimation (governmental endorsement) encourage foundings. Additionally, mass (the aggregate number of hotel rooms) is observed to lower the founding rate; however, there is no evidence that visitor arrivals affect hotel foundings.

Key Words: Singapore hotel industry • organizational ecology • founding rate • constitutive legitimation • sociopolitical legitimation • competition

Journal of Hospitality & Tourism Research, Vol. 25, No. 3, 302-319 (2001)
DOI: 10.1177/109634800102500305


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