Management innovations in a Chinese hotel company: the case of 7 Days Inn

Abstract

Purpose – This study aims to analyze management innovations developed by a homegrown Chinese hotel company aimed at sustaining its growth and reveals some unorthodox management practices in the lodging industry in China. Design/methodology/approach – A theoretical sampling process was used to choose 7 Days Inn as a single case study. Semi-structured in-depth personal interviews of 15 informants with varying responsibilities were conducted to obtain organization-specific insights. Content analysis of the transcripts was performed to analyze interview data. Secondary data and interviews of managers in competing hotels were also used to support the findings. Findings – This study identified seven major innovative management practices developed by 7 Days Inn. Most of these innovations arose from the company’s idiosyncratic collective mindset. The company created a different approach to thinking about the basic issues regarding business and management – including managerial roles, mistakes and change – that constituted the cornerstones of its management innovations. Research limitations/implications – Owing to the limitations of case method, the findings may not be generalizable to other Chinese hotel companies. Practical implications – As little is known about innovative management practices by homegrown hotel companies in China, this study sheds new light on a creative and distinctive management system in the Chinese hotel industry. Introducing management styles that differ significantly from those of Western companies will benefit both management researchers and practitioners. Originality/value – This study extends previous findings in management innovation by uncovering indigenous innovation influenced by traditional Chinese cultural values in China’s hospitality industry.