Journal of Critical Reviews

ISSN- 2394-5125 Vol 7, Issue 10, 2020

LEADERSHIP STYLES, CRISIS MANAGEMENT, AND HOTEL PERFORMANCE: A

CONCEPTUAL PERSPECTIVE OF THE JORDANIAN HOTEL INDUSTRY

Raed Hussam Mansour Alzoubi¹, Amar Hisham Jaaffar²

¹ College of Graduate Studies, Universiti Tenaga Nasional, Malaysia
² College of Business Management and Accounting, Universiti Tenaga Nasional, Malaysia,
E-mail: ahisham@uniten.edu.my

Corresponding author: Raed Hussam Mansour Alzoubi,

E-mail: raed.hussam@yahoo.com

Received: 21.03.2020 Revised: 08.04.2020 Accepted: 25.05.2020

Abstract
Since December 2010, revolutionary waves have occurred in many Arab countries and described in the media as the “Arab Spring”.
However, the situation has become even more serious due to the global Covid-19 pandemic which has severely impacted economies
all around the world. Jordan has been severely affected by this situation and many visitors from Europe and America have cancelled
their visits, thus reducing tourist numbers and package tours. Tourism in Jordan is reputed to be the principal export sector, a major
employer in the private sector and directly linked to significant foreign exchange earnings. Hotels are key players in Jordanian
tourism and hence, major players in the economy of Jordan. Therefore, crisis management is vital for hotels to survive in this present
turbulent business climate. The main purpose of this paper is to review literature in order to develop a conceptual framework
addressing the role of crisis management in leadership and hotel performance. Any inquiry into this subject could be hugely
significant for Jordan. In view of this, conceptualizing the mediating role of crisis management, in leadership styles and hotel
performance, will contribute greatly to the development of improved theoretical methodological, as well as a conceptual rationale for
existing linkages between leadership styles, crisis management, and hotel performance. This will help to strengthen and broaden the
discussion in the extant literature.

Keywords: Crisis Management; Hotel Performance; Leadership Styles; Jordan

© 2020 by Advance Scientific Research. This is an open-access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
DOI: http://dx.doi.org/10.31838/jcr.07.10.110

INTRODUCTION industry (Al-Omari et al., 2015; Avraham, 2015). The inability

The hotel industry is the main pillar in Jordanian tourism (Al-
Omari, et al., 2015). Globally, the tourism industry is very
vulnerable to crises. In the Middle East, for instance, recent
major socio-political revolts, terrorist attacks, geographical
turbulence in the form of natural disasters and epidemics
have severely impacted tourism. This situation is exacerbated
by the mismanagement of these crisis events. Indeed,
evidence suggests that recovery from these crises is quite
complicated for the tourism industry due largely to limited
crisis awareness (Santana, 2008; Aigbogun, Yassin &Zeeshan,
2013; Paraskevas, &Altinay, 2013). More specifically, in
Middle East countries, the past few years have not been good
for tourism with many Middle Eastern destinations
experiencing a huge decline in tourist numbers due largely to
socio-political instability in the region (Al-Omari, Ali,
Mahmoud, &Jawabreh, 2015; World Tourism Organization,
2016).
In the Jordanian context, the recent past has seen a series of
crises which have plagued its tourism sector. These crises
include: the occupation by Iraqi armed forces in 2003, the
global economic meltdown, and the socio-political crisis, also
known as the Arab Spring, which engulfed the Middle Eastern
region in 2011 and 2012. These have led to a drop in the
number of tourist arrivals by 22%, a drop in Jordanian Gross
Domestic Product (GDP) of 7%, and a 30% drop in the
revenue from tourism (Al-Omari et al., 2015). In addition, the
hotel industry which is responsible for 34% of the labour
force and about 25% of the tourism revenue in Jordan, was
severely hit during the Arab Spring crisis, resulting in a fall in
hotel revenue, hotel jobs and ultimately the viability of the
to effectively manage this crisis poses a challenge to hotel
performance, hence the need for a more concerted research
effort.
Moreover, the Global Risks Report issued by the World
Economic Forum, stated that organizational performance in
relation to the top issues faced by organizations in the current
era are largely related to leadership issues during a crisis
(Risks, 2015; Aigbogun, Ghazali, & Razali, 2016). Hence, the
influence of leadership in guaranteeing optimal hotel
performance cannot be over overstated (Jandaghi, Matin,
&Farjami, 2009; Kim &Brymer, 2011; Imran, Zahoor, &
Zaheer, 2012). McCrae and Balthazor (2000) as well as Hogg,
van Knippenberg, &Rast (2012), have argued that national
and international government principles are a reflection of
the notion that internal organizational leadership and crisis
management are mutually dependent. It is therefore expected
that crisis management should be developed for situations
that are unstable in order to enhance the performance of
organizations. Contingency theory provides an explanation
for the relationship that exists between the external
environment and the strategies executed by a hotel to achieve
its strategic business objectives (Chan, 2013; Berezina,
Bilgihan, Cobanoglu, & Okumus, 2016). Leaders need to be
more flexible in the face of the dynamic and often turbulent
business environment, by matching their leadership styles to
the situation. Contingency Theory provides an illustration of
how leadership styles can change from normal to extreme
(Fiedler, 1993).
The present study involves a re-examination of the
relationship that exists between leadership and hotel

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 LEADERSHIP STYLES, CRISIS MANAGEMENT, AND HOTEL PERFORMANCE: A CONCEPTUAL PERSPECTIVE OF THE
JORDANIAN HOTEL INDUSTRY
performance by bringing into the discussion the
intermediation of crisis management. It must be noted that
even though studies have been carried out on the relationship
between leadership and organizational performance, and
their findings exist in the literature, they are somewhat
lacking in the context of hotels which have their own unique
characteristics. Also, previous research that exists in the
literature relating to leadership and performance in an
organization, is not well grounded. Studies have failed to
consider the intervening role of crisis management in this
relationship, hence creating a gap in knowledge. To bridge
this gap in knowledge, the objective of this paper is to develop
a conceptualized framework that incorporates crisis
management as a mediator in the relationship between
leadership styles and hotel performance. Addressing this
issue will enrich the extant debate in the literature.
LITERATURE REVIEW
Crisis management, leadership, as well as hotel performance,
have been in use in the lexicon of management as strategic
concepts, and applied in scientific methodology. As a result of the
study and extensive research carried out to find a comprehensive
solution to hotel performance in crisis situations in the tourism
industry, it is vital to probe further into the surrounding
constructs critical to comprehending the intermediary and
intervening role of crisis management on hotel performance.
CRISIS AND ITS EFFECT ON TOURISM
A popular definition of crisis in the context of tourism is that
of Sönmez and Tarlow (1997) who define crisis as,
“any incidence that threatens the regular operation as well as
conduct of tourism-related businesses; damage a tourist
destination’s overall reputation for safety, attractiveness, and
comfort by negatively affecting visitor’s perception of that
destination; and, in turn, cause a downturn in the local travel
and tourism economy, and interrupt the continuity of
business operations for the local travel and tourism industry,
by the reduction of tourist arrivals and expenditures” (p. 14).
Looking at the crisis concept, it is worth noting that it has
been discussed and used simultaneously in different fields,
hence its definition and usage varies according to the field of
study. For example, researchers of crisis (Paraskevas, 2006;
Coombs, 2010; Lundberg &Asplund, 2011; Boin, Stern,
&Sundelius, 2016) have argued that in the tourism context,
especially in the hotel industry, the notion of a crisis is a
phenomenon that embodies distinct characteristics that
involve new occurrences/happenings or environmental
turbulence that are unfavourable/adverse/harmful to the
tourism industry as well as presenting as an existential threat
to the survival of the hotel business. These occurrences are
defined as unexpected and unstructured circumstances which
are external to the operational framework of a typical hotel
business. Typical examples that have been reported include
the following: the suicide bomb blast in 2005 that took place
in the Radisson Hotel in Amman Jordan, causing the deaths of
many people including several tourists and guests at a
wedding ceremony. Other typical examples include: an
incident in Egypt in 2015 involving the hijacking of an
aeroplane carrying Russian tourists, reports of hotel fires and
the kidnapping of tourists in Europe, a terrorist attack that
took place in an Indonesian night club located in Bali also
aimed at international tourists. Putting this into perspective,
Hartmann (2012) categorized crises in four main groups:
i. Natural crisis: these are occurrences that are due to
natural happenstances for instance, earthquakes, heavy
thunderstorms, tsunamis.
ii. Civil conflicts: these are occurrences that are due to
Journal of critical reviews
political tensions within a country, or even in a wider
geographical context such as a whole region or
continent. Such civil conflicts include demonstrations,
strikes, war and terrorism.
iii. Epidemics: These are due to the rapid spread of
communicable diseases such as Foot and Mouth Disease,
Avian Flu and recently Covid-19.
iv. Technology failures: These are due to such occurrences
as electric power disruptions, computer
irregularities/threats and air plane crashes.
Moreover, Boin, Stern, & Sundelius (2016) are of the opinion
that crises in the context of hotel business organizations are
extreme emotional events that place considerable emotional,
as well as psychological burdens, on managers and/or
decision-makers who are endeavoring to maintain hotel
performance.
HOTEL PERFORMANCE
Globally, hotels are key players in tourist operations. Hence,
Erkutlu and Chafra, (2006) argue that hotels are compelled to
evolve, as well as improve their performance. As a result,
Lockwood (2007) suggests that hotels need to deploy efficient
leadership in order to improve guest services as well as
employee job satisfaction. The hotel industry is generally
characterized by the intangibility of the products offered,
increased costs, increased labour costs and a susceptibility to
crises (Hurduzeu, 2015; Zech, 2016). According to Chen &
Barnes (2006), hotel performance is described as the
conversion of inputs into outputs in order to accomplish
defined outcomes. Performance provides evidence of the
relationship between minimal and effective cost, and also
between effective cost and output as well as between output
and accomplished outcome (p. 58). Ćorluka, Mikinac,
&Peronja (2017) define hotel performance as the output or
accomplishment of defined measurable goals and the effective
carrying out of predefined responsibilities (p. 76). A
consensus is presently lacking in the literature regarding the
criteria employed to evaluate hotel performance (La Rue,
Childs, & Larson, 2004; De Clerk, 2008).
Cameron and Quinn (2006) argue that those that have a stake
in a company are in support of the flexibility of their
companies and they want them to be adaptable, effective and
efficient. An efficient firm exhibits a high level of collaboration
as well as meeting the obligations that exist between
stakeholders via work groups, team projects as well as
management (Cohen & Bradford, 2005). For Scott and Davis
(2007), the flexibility as well as the capability of a hotel to
leverage on its environment in the attainment of internal as
well as external resources are indicators of hotel
performance, with its worth measured by means of the stock
market. It is the vital index in the measurement of the
performance of a hotel or any other firm. According to
Ivankovič, Jankovič and Peršič (2010), hotels that operate in
emerging or transition economies should adopt efficient
competitive strategies to give them a competitive edge over
other organizations in the same industry. Due to the constant
pressures that arise from customer needs, it is imperative that
strategic performance measurement programmes be
instituted to analyze hotel performance. Research scholars
(Mohammed & Rashid, 2012; Wu & Lu, 2012; Mohammed,
Rashid, & Tahir, 2017) proposed an innovative method for the
measurement of hotel performance using four dimensions or
perspectives: financial perspectives, customers’ perspectives,
internal process perspectives, learning and growth
perspectives.
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 LEADERSHIP STYLES, CRISIS MANAGEMENT, AND HOTEL PERFORMANCE: A CONCEPTUAL PERSPECTIVE OF THE
JORDANIAN HOTEL INDUSTRY
LEADERSHIP STYLES IN THE HOTEL INDUSTRY
The contemporary tourism industry in the Middle East has
witnessed turbulent times, and this has affected hotel
businesses. As a result, research scholars have argued that
hotel leaders must focus on identifying the external as well as
the internal factors that affect their organizations. This is with
the view to devising strategies to surmount the challenges
that hotels face (Al-Ababneh, 2013). Moreover, Al-Omari, et al.
(2015) argued that in the hotel industry, leaders must
concentrate on developing a better understanding of how to
efficiently lead their organizations within a dynamically and
competitively motivated, turbulent tourism environment.
Thus, to effectively lead hotel organizations of today, it is
expedient to understand how leadership styles have evolved
over the years.
According to Tran (2017), leadership style involves the
behavioral actions which leaders display in the process of
leading their employees to achieving organizational goals.
With the aim of extending studies on leadership styles,
research scholars focused on leadership models that
encompass leaders, followers and how their roles are carried
out. Contingency Theory explains that all leaders may not
have the same level of skills and competencies when facing a
crisis or challenging environments (Taormina, 2008). In
addition to Contingency Theory, Bass Leadership Theory has
been used to explain the two main leadership styles, namely
transformational and transactional (Bass, 1985; Avolio &
Bass, 2004; Brown & Arendt, 2011).
CRISIS MANAGEMENT IN THE HOTEL INDUSTRY
A recent study of key success drivers for hotels identified
crisis management as a major issue (Deloitte, 2014). As a
result, it is essential for hospitality leaders to anticipate and
respond to these issues. However, despite the prevalence and
negative impact of crises, the study of crisis management in
the tourism industry has received only limited attention,
hence creating the need for more research efforts into this
paradigm. According to Malhotra and Venkatesh (2009) in
their study on the Pre-crisis period planning, crisis planning is
a very central part of the hotel industry and, due to the nature
of operations, a 24-hour open access is inevitable thus they
are prone to negative crisis impacts. In addition, the existence
of hotels is highly dependent on both local and international
tourist patronage, hence hotels are extremely sensitive and
susceptible to external environmental turbulence and crises
(Malhotra & Venkatesh 2009).
Nonetheless, researchers (Pforr&Hosie, 2009; Aigbogun,
Ghazali, & Razali, 2014) argue that the development of crisis
management strategies is a need that is quite obvious to
managers of today’s hotel business as the “crisis” has become
an essential element that is factored into the business strategy
development of many hotel businesses. This assertion is
supported by Ribarić (2010) who suggested that due to the
high susceptibility of the tourism industry to an unforeseen
crisis, strategic crisis management planning to create
proactive, as well as reactive strategies that principally avert a
crisis or largely reduce the negative impacts of such a crisis
event should be incorporated into the overall management
strategies of every tourism organization.
However, in the field of tourism management, certain authors
(Page et al., 2006; Alvinius, Danielsson, & Larsson, 2010)
believe that crisis management research has started receiving
more attention due largely to some recent happenings such as
the Foot and Mouth Disease outbreak experienced in many
parts of Asia, as well as natural disasters such as those
occasioned by the Hurricane Catrina. Laws and Prideaux
(2013) surveyed hotel managers in the United States of
America on the impact of the crisis management strategies on
Journal of critical reviews
the performance of their hotels. Their findings underscored
the positive impact of devising proactive crisis management
for future crisis events.
Moreover, in research conducted by Aldehayyatet al. (2011)
to examine the link between the utilization of strategic
planning tools as well as strategic techniques and managers’
notions of a strategic planning process in Jordanian hotels, a
number of insights were obtained. Firstly, the findings
indicate that Jordanian hotels are more inclined towards
external analysis relative to internal analytical factors like
internal capability, previous performance and also reasons for
previous failures. Secondly, the findings of the study also
revealed that analysis of the external environment is not
enough for a firm to obtain a competitive advantage over
others. The results of Mohammad, Idris, and Moh'd AL-
Ferokh(2014) show that crisis management has a significant
positive influence on the innovation performance of five-star
hotels in Jordan.
By means of a structured type questionnaire, Al-Omari et al.
(2015) in their study on the effect of the Arab Spring socio-
political crisis on the hotel sector in Jordan, surveyed 200 hotels
doing business in Amman, the capital of Jordan. They analyzed
the primary data gathered by means of measures of central
tendencies as well as a one-way ANOVA. The findings from their
study indicated that the Arab Spring socio-political crisis
negatively affected the Jordanian hotel sector. This was evident
in three areas: hotel occupancy rates, the number of nights spent
by patrons, and hotel revenues. As a result, the authors
acknowledged that studies are required to develop workable
models that aid the management of this type of crisis. However,
drawing from the literature in emergency preparedness, the
study carried out by Mitroff (1988) suggested a five-phase
holistic model of crisis management. This model has been
adopted and widely used by research scholars. According to
Alkhawlani, et al. (2016) as well as Aljuhmani and Emeagwali
(2017), crisis management is classified as: Crisis signal detection,
Crisis preparation, Crisis containment, Crisis recovery and Crisis
learning.
CONCEPTUAL FRAMEWORK DEVELOPMENT
This paper proposes a conceptual framework that
incorporates the mediating effect of crisis management in the
framework of the relationship between leadership styles and
hotel performance. The conceptual framework comprises
leadership styles (transformational leadership and
transactional leadership) as independent variables, crisis
management with five dimensions (Crisis signal detection,
Crisis preparation, Crisis containment, Crisis recovery and
Crisis learning) as a mediator variable and hotel performance
with four dimensions (the financial perspective, customer
perspective, internal process perspective, and the learning
and growth perspective) as the dependent variable.
From the perspective of the Bass Leadership Theory,
leadership may be transformational and transactional in style,
but these styles of leadership may not be homogenous due to
the influence of situational factors as explained by the
Contingency Theory. Battilana and Casciaro (2012) in their
research into the influence of the contingency theory on
organizational change argued that a contingency approach to
organizational management is influenced by the theory that
leadership effectiveness in the organizational setting is
contingent upon the interaction between leadership styles
and specific situations. The Fiedler contingency model bases
the leader's effectiveness on situational contingency. This
results from the interaction of leadership style and situational
favorableness/situational control. The theory defined two
types of leader: those who tend to accomplish the task by
developing good-relationships with the group (relationship-
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 LEADERSHIP STYLES, CRISIS MANAGEMENT, AND HOTEL PERFORMANCE: A CONCEPTUAL PERSPECTIVE OF THE
JORDANIAN HOTEL INDUSTRY

oriented), and those whose prime concern is carrying out the
task itself (task-oriented). Pang, Jin, and Cameron (2010) have
argued that during crisis situations, the performance of the
organization is contingent on the effectiveness and efficiency
of leadership communication of the crisis when implementing
a crisis management strategy. This resonates with the views
of McCrae and Balthazor (2000) who opine that the
regulations enacted by national, supranational and
international governments are a reflection of the opinion that
internal organizational leadership and crisis management are
interrelated. In times of crisis, proponents of Bass
transactional leadership have argued that a “give and take”
situation is applied to crisis management, whereby the
leaders elicit followers’ involvement in crisis management
strategies by anticipating employee needs and then promise
their fulfillment, contingent to their effective performance.
However, Bass transformational leadership concentrates on
the organizational leader motivating the employees beyond
immediate self-interest. It is known to elevate the employees’
level of maturity and ideals as well as concerns for
achievement, self-actualization, and the well-being of others,
the organization, and society at large. As a result, Voon, et al.
(2011) as well as Jackson, Meyer and Wang (2013) argue that
the adoption by managers of transformational leadership
behaviours is more satisfying to employees and that
transformational leaders tend to be more effective and
proactive. Also, they are known to offer a purpose that
transcends short-term goals, while focusing on higher order
intrinsic needs (Tyssen, Wald &Spieth, 2014).
Given that the dynamics of leadership styles are in evidence
when facing different business environments, this study
asserts that crisis management will become a vital practice for
managers facing a challenging situation. The types of crisis
management such as crisis signal detection, crisis
preparation, crisis containment, crisis recovery and crisis
learning (Aljuhmani & Emeagwali, 2017) may differ
depending on the leadership style of the leader. However,
crisis management practice is important to ensure the
homogenous cognitive style of the leaders facing a crisis.
Hence the following propositions are suggested:

Fig. 1. Depicts the Proposed Model and the Relationships between the Variables

Proposition 1: Transformational leadership style will be positively related to crisis management in Jordanian hotel industry.
Proposition 2: Transactional leadership style will be positively related to crisis management in Jordanian hotel industry.
Proposition 3: Crisis managementwill be positively related tohotel performance in Jordanian hotel industry.
Proposition 4: Transformational leadership style will be positively related to hotel performance in Jordanian hotel industry.
Proposition 5: Transactional leadership style will be positively related to hotel performance in Jordanian hotel industry.
Proposition 6: Crisis management mediates the relationship between transformational leadership style and hotel performance in
Jordanian hotel industry.
Proposition 7: Crisis management mediates the relationship between transactional leadership style and hotel performance in
Jordanian hotel industry.

DISCUSSION AND CHALLENGES
The literature is replete with arguments and counter
arguments about leadership involvement in the performance
of organizations. Even though research on the relationship
between leadership and organizational performance exists, it
has not been well grounded in the hotel industry, hence, the
findings appear to be inconclusive. Moreover, although the
positive relationship between the transformational leadership
style and the performance of organizations has previously
been established, the nature of this relationship in crisis
situations in the hotel industry has, as yet, not been analyzed,
thus creating an essential need for further studies to address
this issue by introducing the intervention of crisis
management as a mediator.
Furthermore, studies conducted on the effect of the Arab
Spring socio-political crisis noted that it negatively affected
the Jordanian hotel sector. However, the generality of the
studies that have been conducted have focused on the
influence of the crisis from the economic and political
perspective. Thus there is a dire need for research-based
studies to support the hotel sector in Jordan. Moreover,
previous research conducted on the impact of a crisis were
generic and centered on the tourism industry as a whole,
however, there is a limited number of studies focused
specifically on the hotel sector which is the most important
sector in the tourism industry due to its contribution to the
labour force as well as economy of Jordan. Prior studies on
the impact of the Arab Spring focused on the countries
directly affected (e.g Egypt, Tunisia, Syria) without
consideration of the adjourning Arab countries (such as
Jordan) which were indirectly yet seriously affected by the
Arab Spring.
In addition, numerous meta-analytic studies have suggested
that crisis management not only respond to the increasing
expectations of the organization’s leadership style, but also
affect their overall firm performance. However, some authors
believe that this assertion is largely dependent on the context
and the industries involved, and that the appreciable social,

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 LEADERSHIP STYLES, CRISIS MANAGEMENT, AND HOTEL PERFORMANCE: A CONCEPTUAL PERSPECTIVE OF THE
JORDANIAN HOTEL INDUSTRY
environmental and economic performance of organizations in
times of crisis are only successful in organizations that have
instituted appreciable crisis management. As a result, a
considerable proportion of variance is left unexplained.
Consequently, the influence of leadership in guaranteeing
optimal hotel performance, even in times of crisis, cannot be
over overstated. It has been argued that during a crisis, the
leadership style of hotel managers affects their awareness
both in terms of the specific organization itself and the
industry as a whole. A significant way of achieving this
awareness is through crisis management. Consequently,
managers are expected to depend on reliable information in
order to examine the performance of their organizations and
contend with internal and external environmental forces. It is
thus essential that a framework be developed enabling hotels
to operate at optimum performance levels amidst a crisis.
That is where the framework developed in this paper
becomes so essential.
CONCLUSION
This paper proposes a holistic conceptual framework
incorporating the intermediary role of crisis management for
optimum hotel performance. It is the first phase of a broader
research that investigates the mediating effect of crisis
management in the relationship between leadership styles
and hotel performance. The next phase of this quantitative
research will involve a cross sectional questionnaire survey in
which structured self-administered questionnaires will be
applied directly to the target research population to be made
up of hotel managers in 1-star to 5-star hotels in Jordan. The
mediating effect of crisis management will be analyzed using
a bootstrapping method in Partial Least Square Structural
Equation Modelling (PLS-SEM).
The results of this study will provide insights into the role of
crisis management by informing leaders, who have different
leadership styles, how to manage a crisis. In addition, the
results will provide empirical evidence regarding the
effectiveness of crisis management to improve hotel
performance during a crisis. It will also shed light on the
leadership styles that matter for the Jordanian hotel industry.
Finally, the results of the study will verify the validity of the
Bass Leadership Theory and Contingency Theory in the area
of crisis management leadership.
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