Author Identifier (ORCID)
Abstract
Digital technology can improve communication between parent and subsidiary enterprises in group firms, potentially decentralizing decision-making. However, this relationship remains underexplored. This study draws on the transaction cost and agency theories to investigate the impact of digital transformation on the decentralization of decision-making rights within hospitality and tourism group firms. Using data from China's A-share listed hospitality and tourism group firms spanning 2009–2022, the analysis reveals that digital transformation significantly promotes the decentralization of decision-making rights to subsidiaries. This effect is particularly pronounced in firms with higher levels of economic policy uncertainty, greater geographic distance between headquarters and subsidiaries, and a significant number of subsidiaries operating outside their home region. The findings contribute to the literature on the determinants of decision-making rights distribution and the organizational implications of digital transformation, offering practical insights for hospitality and tourism group firms that are optimizing decision-making structures through technological advancements.
Keywords
Decentralization, digital transformation, economic policy uncertainty, group firms, headquarters–subsidiary geographic distance
Document Type
Journal Article
Date of Publication
4-1-2026
Article Number
104550
Volume
134
Publication Title
International Journal of Hospitality Management
Publisher
Elsevier
School
School of Business and Law
RAS ID
88839
Funding Information
National Natural Science Foundation of China (NSFC-72162027, NSFC-71802080)
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Content Type
Full object
Recommended Citation
Hu, B., Zheng, T., Huang, S., & Zhang, K. (2026). The role of digital transformation in shaping the decentralization of decision-making rights within hospitality and tourism group firms. International Journal of Hospitality Management, 134, Article 104550. https://doi.org/10.1016/j.ijhm.2025.104550
Comments
This is an Authors Accepted Manuscript version of an article published by Elsevier in International Journal of Hospitality Management. The published version is available at: https://doi.org/10.1016/j.ijhm.2025.104550
Hu, B., Zheng, T., Huang, S., & Zhang, K. (2026). The role of digital transformation in shaping the decentralization of decision-making rights within hospitality and tourism group firms. International Journal of Hospitality Management, 134, 104550. https://doi.org/10.1016/j.ijhm.2025.104550