INSTITUTIONAL ASPECTS OF TRANSFORMATION PROCESSES IN THE HOSPITALITY INDUSTRY

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Published: Apr 5, 2024

  Uliana Huzar

  Marіana Nazar

  Andrii Kobryn

Abstract

The article is devoted to the study of the impact of institutional aspects on the transformation of the hospitality industry in Ukraine. The object of the study is the transformation processes of the hospitality industry, which took place under the influence of institutional factors. The paper analyses a number of scientific works by foreign and domestic scholars on understanding the concepts of "institution", "institute", "institutional environment" and its importance in the development of the hospitality industry in general. Methodology. The aim of the study is to analyse the impact of institutional factors on the transformational processes of development of the hospitality industry in Ukraine at the present stage. It is proposed to consider the institutional environment as a set of formal and informal institutions that at different levels have different impacts on the formation of the institutional system of society. The comparative characteristics of formal and informal institutions were compiled in order to clearly distinguish their differences and apply them correctly in building an effective institutional policy for the hospitality industry. It is proved that although formal institutions are relatively stable, their formation and preservation should be based on their perception by people in society as a factor in effectively solving certain problems. It was determined that Ukraine, as a country in a period of crisis (direct military action), should seriously consider institutional factors as a source of future direct investment, and weak institutional policies will raise concerns about the possibility of transferring management practices, procedures, and methods from other countries. The authors compiled a scheme of influence of factors on the formation of the institutional environment of the country as a whole and the hospitality industry, including political, legislative, economic, socio-cultural and ethical factors of influence. The publication examines the mutual influence of the institutional environment and the organisation, which is based on institutional ties, institutional pressure and institutional entrepreneurship. It has been found that an effective institutional environment stimulates the development of the hospitality industry, and a good institutional structure characterised by a strong rule of law, control of corruption, freedom of expression, a stable political environment, better regulation and good governance can open a new path for hospitality services. Conclusion. The results of the study are a significant contribution to the qualitative formation of the institutional environment of the hospitality industry.

How to Cite

Huzar, U., Nazar, M., & Kobryn, A. (2024). INSTITUTIONAL ASPECTS OF TRANSFORMATION PROCESSES IN THE HOSPITALITY INDUSTRY. Baltic Journal of Economic Studies, 10(1), 54-62. https://doi.org/10.30525/2256-0742/2024-10-1-54-62
Article views: 376 | PDF Downloads: 247

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Keywords

institutional environment, transformation, hospitality industry, formal and informal institutions, institutional relations, institutional pressure, institutional entrepreneurship

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