The role of digital transformation in shaping the decentralization of decision-making rights within hospitality and tourism group firms
Author Identifier (ORCID)
Songshan (Sam) Huang: https://orcid.org/0000-0003-4990-2788
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.
Document Type
Journal Article
Date of Publication
4-1-2026
Volume
134
Publication Title
International Journal of Hospitality Management
Publisher
Elsevier
School
School of Business and Law
RAS ID
88839
Funders
National Natural Science Foundation of China (NSFC-72162027, NSFC-71802080)
Copyright
subscription content
Comments
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