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

Abstract

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. © 2001 International Council on Hotel, Restaurant and Institutional Education.