UNIVERSITY OF SURREY

SCHOOL OF HOSPITALITY AND TOURISM

MANAGEMENT

AN INVESTIGATION OF

ENTREPRENEURIAL MOTIVATION AND BUSINESS GROWTH:

Boutique Hotels in Northern Thailand

Thesis submitted by Sainatee Chernbumroong in requirement for the degree of

Doctor of Philosophy at the University of Surrey

GUILDFORD 2014

ABSTRACT

In the past few years, Thailand has faced many negative situations such as natural disasters

and political disturbances, which have had serious impacts on all parts of the nation including

its economic progress. In Northern Thailand, the role of the hospitality and tourism sector is

claimed to be particularly significant as an industry which has protected the Northern region

from severe economic disaster. Recently, however, the number of boutique hotels in Northern

Thailand has shown very rapid growth but the motivations behind creating and operating

these businesses has never been fully investigated. Understanding the entrepreneurial

motivation behind these businesses can be of benefit not only to the region, but also to the

nation and to the study of entrepreneurship as a whole.

Previous research has contributed to our knowledge of entrepreneurial motivation but it has

shown many differences and identified many varied types of entrepreneurial motivation and

there has been no clear agreement on which entrepreneurial motivation applies in any specific

context. The majority of the research has been quantitative, which has provided only a partial

explanation of the issue. Entrepreneurs in different contexts and different industrial settings

would appear to be motivated by different things e.g. entrepreneurs in the hospitality and

tourism industry have been seen to be motivated by lifestyle concerns. Importantly in

previous research these lifestyle entrepreneurs have been believed to reject business growth.

Research in the hospitality and tourism field has also been dominated by a Western context

and the majority of the research has employed surveys of various types.

Therefore, the research reported in this thesis has been established with three clear

objectives. The first is to identify and gain an insight into the motivation of entrepreneurs

operating boutique hotels in Northern Thailand. Although entrepreneurs in the hospitality and

tourism field have previously been seen to reject business growth, this research has moved

away from this presumption. Hence, the second objective is to investigate how entrepreneurs

ii

in this specific context view business growth and to identify and gain an insight into the

nature of business growth in boutique hotels in Northern Thailand. While the majority of the

previous research has generated explanations based only on the views of customers and

managers, the third objective is to compile and synthesise detailed information about

boutique hotel from the views of the entrepreneurs themselves.

To provide a detailed insight into entrepreneurial motivation, business growth and boutique

hotels, this research was conducted using a qualitative method. The researcher carried out in-

depth interviews in a total of thirty two hotels, talking to twenty-nine owners/entrepreneurs

and five managers. The interviews were transcribed in full by the researcher and thematic

analysis was employed for the data analysis.

The findings can be separated into three parts. First, the research on entrepreneurial

motivations revealed four significant themes. These were the influence of the family, the

encouragement of friends, the attractiveness of the destination and the type of business.

Importantly, the findings indicated that the entrepreneurs were driven largely by non-profit

motivations. Second, the research on business growth revealed that, rather than avoiding

business growth, the majority of these entrepreneurs had already grown their businesses or

had plans to grow their business in the near future. The entrepreneurs focused on growth

strategies which were concerned with increasing the number of rooms, establishing new

hotels or other new businesses, adding facilities and activities to their existing operations,

changing the style of the hotel and more generally improving the service they provided. The

reasons behind the growth can be divided into five areas of which four were non-profit based.

Business growth was generated largely to satisfy the entrepreneurs’ personal desires. These

entrepreneurs enjoyed the hotel context. They were still influenced by their family but

business growth was seen to bring them personal satisfaction and happiness, rather than

economic reward. Third, the research highlighted the owners’ perspective of the definition

and characteristics of a boutique hotel. For them boutique hotels have individualized design

characteristics because each owner has inserted his/her own ideas into the design and

decoration of their hotel. Boutique hotels are likely to have historical connections and are

closely linked to the traditions and culture of Thailand. Indeed they are seen to play an

important role in maintaining the traditional culture of the region. Boutique hotels benefit

from a relatively small number of rooms, although the number of rooms should not be seen as

a key determinant used to define them. Finally the service in boutique hotel is largely

iii

delivered by employees but there is a strong concern expressed by the owners and their

managers about maintaining positive relationships with their employees.

The findings of this research have revealed the key importance of social conditions in the

understanding of entrepreneurship. They have shown that it cannot be explained simply

through the rational and principally economically motivated behaviour of entrepreneurs. It is

crucial that the context in which the entrepreneurship exists is considered to be of significant

importance in investigating the issues. Consideration of the context and significantly the

social context provides a clearer explanation of entrepreneurial motivation. Furthermore, the

research has discovered that, in this context, hospitality and tourism entrepreneurs who are

predominantly motivated by lifestyle issues, do not per se reject business growth. Given the

scarcity of studies on entrepreneurs in the hospitality and tourism context, this research

provides evidence from a broader perspective. Perhaps the key message is that knowledge in

this field can be best advanced if researchers attempt to gain an insight into the broader social

context within which the entrepreneur is situated (Thomas et al., 2011).

iv

DECLARATION

I, hereby declare that this submission is my own work and that, to the best of my knowledge

and belief, it contains no material previously published or written by another person nor

material which to a substantial extent has been accepted for the award of any other degree or

diploma of the university or other institute of higher learning, except where due

acknowledgment has been made in the text.

___________________

Sainatee Chernbumroong

2014

v

TABLE OF CONTENTS

Abstract......................................................................................................................................ii

Declaration.................................................................................................................................v

Table of Contents......................................................................................................................vi

List of Tables............................................................................................................................xi

List of Figures..........................................................................................................................xii

Acknowledgement..................................................................................................................xiii

Chapter One: Introduction......................................................................................................1

1.1. Introduction.................................................................................................................1

1.2. The Research Rationale...............................................................................................1

1.3. Research Area Context: The Northern Thailand.........................................................6

1.3.1. The Geography of Northern Thailand..................................................................6

1.3.2. Thai People and Culture.......................................................................................7

1.3.3. The Nation and Northern Economic Issues.......................................................10

1.3.4. Northern Thailand as Tourist Destination..........................................................12

1.4. The Research Justification.........................................................................................15

1.5. The Research Aims and Research Objectives...........................................................16

1.6. Organization of the Thesis........................................................................................17

Chapter Two: Entrepreneurial Motivations.......................................................................19

2.1. Introduction...............................................................................................................19

2.2. Entrepreneurial Motivation.......................................................................................19

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2.3. Economic Perspective...............................................................................................20

2.4. Psychological Perspective.........................................................................................27

2.5. Sociological Perspective............................................................................................34

2.6. Entrepreneurial Motivation in the Tourism and Hospitality Industry.......................38

2.7. Chapter Conclusion...................................................................................................43

Chapter Three: Business Growth and Boutique Hotel.........................................................45

3.1. Introduction...............................................................................................................45

3.2. Approaches in Small Business Growth.....................................................................45

3.3. Growth Factors..........................................................................................................50

3.3.1. Business Environment and Business Growth....................................................51

3.3.2. Small Business Characteristics and Business Growth.......................................52

3.3.3. Entrepreneurs and Business Growth..................................................................53

3.4. Entrepreneurial Motivation and Business Growth....................................................56

3.5. Hospitality and Tourism Industry and Small Business Growth................................58

3.6. The Definition and Characteristics of Boutique Hotels............................................62

3.7. Chapter Conclusion...................................................................................................65

Chapter Four: Methodology...............................................................................................66

4.1. Introduction...............................................................................................................66

4.2. The Previous Discussion...........................................................................................67

4.3. Research Objectives and Research Questions...........................................................68

4.4. Research Philosophy.................................................................................................70

4.5. Research Approach....................................................................................................74

4.6. Research Design........................................................................................................76

4.6.1. Qualitative Research..........................................................................................76

4.6.2. The Research Method: Interview.......................................................................77

4.6.3. The Research Interview Guide and Questions...................................................80

4.6.4. Overview of Research Process...........................................................................83

vii

4.6.5. The Research Sample.........................................................................................85

4.6.6. Quality of Qualitative Research.........................................................................91

4.6.7. Research Ethical Issues......................................................................................92

4.6.8. Early Stage of Research Journey.......................................................................94

4.7. Data Collection..........................................................................................................95

4.7.1. The Preliminary Study.......................................................................................96

4.7.2. The Main Study..................................................................................................98

4.8. Data Analysis..........................................................................................................101

4.8.1. Transcribing the Data.......................................................................................102

4.8.2. Analysing the Data...........................................................................................103

4.9. Chapter Conclusion.................................................................................................110

Chapter Five: Findings........................................................................................................112

5.1. Introduction.............................................................................................................112

5.2. The Respondents’ Biographical Information..........................................................112

5.3. Meta Codes and Master Codes of the Findings.......................................................115

5.4. Entrepreneurial Motivations (EM)..........................................................................116

5.4.1. Family Influences (FI).....................................................................................116

5.4.2. Friends’ Encouragement (FE)..........................................................................120

5.4.3. Attractions of the Destination (AD).................................................................121

5.4.4. Type of Business (TB).....................................................................................125

5.5. Business Growth (BG)............................................................................................128

5.5.1. Businesses Growth Strategies (BGS)...............................................................129

5.5.2. Business Growth Plan (BGP)...........................................................................130

5.5.3. Reasons Behind the Growth (RBG).................................................................132

5.6. Boutique Hotel (BH)...............................................................................................137

5.6.1. Features of Boutique Hotel (FBH)...................................................................137

5.6.2. Boutique Hotel Atmosphere (BHA)................................................................143

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5.6.3. View of Boutique Hotel (VBH).......................................................................146

5.7. Chapter Conclusion.................................................................................................148

Chapter Six: Discussion....................................................................................................150

6.1. Introduction.............................................................................................................150

6.2. Entrepreneurial Motivation.....................................................................................150

6.2.1. The Dominant Role of the Family...................................................................151

6.2.2. The Role of Networks......................................................................................153

6.2.3. The Attractiveness of the Destinations............................................................155

6.2.4. Influences of Business Type............................................................................158

6.3. Business Growth......................................................................................................159

6.3.1. Profit Driven Versus Non-Profit Driven..........................................................160

6.4. Boutique Hotels.......................................................................................................163

6.4.1. The Definition of Boutique Hotel....................................................................163

6.5. Chapter Conclusion.................................................................................................167

Chapter Seven: Conclusion................................................................................................168

7.1. Introduction.............................................................................................................168

7.2. Revisiting the Research Objectives.........................................................................168

7.2.1. First Objective and Findings............................................................................169

7.2.2. Second Objective and Findings........................................................................170

7.2.3. Third Objective and Findings..........................................................................171

7.3. Research Contribution.............................................................................................172

7.4. Research LimitationS..............................................................................................175

7.5. Future Research.......................................................................................................177

7.6. Chapter Conclusion.................................................................................................178

References..............................................................................................................................180

Appendices.............................................................................................................................192

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Appendix 1: The initial list of boutique hotel information....................................................194

Appendix 2: Interview letters.................................................................................................195

Appendix 3: Interview guide..................................................................................................198

Appendix 4: Example of contact status sheet........................................................................199

Appendix 5: Contact summery sheet.....................................................................................200

Appendix 6: The example of transcribed interview...............................................................201

Appendix 7: Thematic analysis/ codes (final)........................................................................202

Appendix 8: Rearranging of code and coded text..................................................................204

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LIST OF TABLES

Table 2.1: Profit as Entrepreneurial Motivation......................................................................21

Table 2.2: Negative Economic Conditions as Entrepreneurial Motivation.............................23

Table 2.3: Entrepreneurial Characteristic(s) Influencing the Formation of Enterprises..........27

Table 2.4: Entrepreneurial Characteristics...............................................................................28

Table 2.5: Entrepreneurial Motivation Viewed from a Sociological Perspective...................34

Table 4.1: Differences between Positivism and Interpretivism...............................................72

Table 4.2: Major Differences Deductive and Inductive Approaches to Research...................75

Table 4.3: An Example of Data Analysis in First Stage........................................................104

Table 4.4: An Example of Analysis Table “Summarise the Quote Meaning”......................108

Table 5.1: The Background Information of the Respondents................................................114

Table 5.2: Increasing the Number of Rooms.........................................................................129

Table 5.3: Examples of Influences of Historical Stories and Culture toward Boutique Hotels

................................................................................................................................................140

Table 6.1: Growth Strategies and Reasons to Grow Business (Non-Profit Respondents).. . .162

Table 6.2 Comparing Definitions of Boutique Hotel.............................................................165

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LIST OF FIGURES

Figure 4.1: Summary of the Research Process........................................................................84

Figure 4.2: An Example of the Second Set of Themes in NVivo10......................................105

Figure 4.3: An Example of the Third Stage in Analysis........................................................107

Figure 4.4: Data Categorised Using Paper and Scissors........................................................110

Figure 5.1: Number of Rooms...............................................................................................141

Figure 6.1: Hotel Occupancy, Annual Average (%)..............................................................156

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ACKNOWLEDGEMENT

The completion of this thesis owns its significance to all the people who have provided guidance and instruction during the period of my study.

The greatest appreciation must be paid firstly to my first supervisor, Professor Andrew Lockwood, who spent his valuable time in helping, encouraging and supervising me and giving me his valuable guidance and comments throughout my PhD journey and secondly to my second supervisor, Dr. Vlatka Skokic, who tirelessly and patiently reviewed and commented on my thesis and constantly supported me with her supreme efforts. I am grateful for their advice and understanding when I was very much in the clouds. Without their guidance, I would not have been able to complete this study.

I would like to thank all my friends in Guildford for their friendship. All the good memories we had together are kept in my heart forever.

Special thanks to Associate Professor Boonsawat Phreuksikanont, Associate Professor Orapin Santiteerakul and Associate Professor Dr. Siriwut Buranapin for their belief in me. Without them, I would not have achieved the opportunity to study a PhD. I also would like to express my gratitude to my scholarship sponsor, Chiang Mai University, for providing financial means and support throughout the duration of my study.

Furthermore I would like to thank all the people who generously gave me their valuable time to participate in the interviews and offered a great deal of information. I am also grateful to my work colleagues at Chiang Mai University who helped me gain access to all my respondents.

Last but not least, I would like to express my heartfelt thanks to my family, my parents Somchit and Pranorm Chernbumroong who continuously provided me with their love and support. Thank you for always believing in me which has given me so much power to overcome many obstacles in life. A very big thank you to my sister (Saisakul Chernbumroong) who often visited me and kept me company and to my brother (Sueppong Chernbumroong) who has taken very good care of our parents while his two big sisters have been pursuing their dreams. I would also like to thank my husband (Satit Kohchamsai) for his everlasting love, faith and patience. I owe him immeasurable thanks for his understanding and everything he has done for me throughout these years. I could not have done this without him.

xiii

CHAPTER ONE: INTRODUCTION

1.1. INTRODUCTION

Recently, there has been a rapid increase in a new type of accommodation, called the

boutique hotel in Northern Thailand developed almost exclusively by individual

entrepreneurs. This phenomenon has never been seen before and the entrepreneurial

motivation for creating and operating these boutique hotels has not been investigated.

According to previous literature, entrepreneurs are driven by several factors to create

entrepreneurship e.g. they need profit. They lose their jobs or the government generates

incentives in creating business. Nevertheless non-of these factors create a clear explanation to

entrepreneurial motivation among entrepreneurs in boutique hotel in Northern Thailand.

Therefore, this chapter provides the rationale for the research. Its content includes the

research rationale, research area context of Northern Thailand, research justification, research

aims and objectives and thesis structure.

1.2. THE RESEARCH RATIONALE

Entrepreneurship is a significant element in economic development and growth (Low and

MacMillan, 1988) e.g. entrepreneurship contributes to the creation of new products and

services (Schumpeter and Backhaus, 2003). It leads to the invention of a new method of

14

product packaging, new technological equipment or a new productive process (Cole, 1946).

The demand for labour is increased by the entrepreneurship that hires employees; therefore it

is an essential source of employment (Praag and Cramer, 2001). Finally, Ateljevic and

Doorne (2000) believe that entrepreneurship benefits society through strengthening

community relationships and preserving valuable cultures and traditions.

Therefore, during the last few decades research on entrepreneurship has increased

significantly (Bruton et al., 2008). Researchers have examined a variety issues in

entrepreneurship e.g. entrepreneurial strategies (Gartner, 1988), business growth in

entrepreneurship (Glancey, 1988; Morrison et al., 2003), resource acquisitions (Long, 1983)

as well as the contribution to economic development (Webster, 1976; Gartner, 1985;

Lichtenstein et al., 2006) . Among the studies on entrepreneurship, entrepreneurial motivation

is regarded as one of the essential elements leading to the establishment and invigoration of

the entrepreneurial process (Evans, 1949; Kuratko et al., 1997). It is one of the vital issues

discussed within the academic pursuit of entrepreneurship (Hamilton and Harper, 1994;

Morrison, 2000). Entrepreneurship literature holds the view that understanding of

entrepreneurial motivation can contribute to the development of the entrepreneurship field

(Shane et al., 2003), and also provide an explanation for the existence of entrepreneurs

(Evans, 1949) and the process of entrepreneurship (Kuratko et al., 1997).

The studies of entrepreneurial motivation can be considered though four main issues. The

first issue concerns the dominance of the disciplines. The second issue is related to the

methodology and methods adopted. Third is the importance of context and fourth is the

lifestyle versus profit orientation especially in hospitality and tourism research.

The studies on entrepreneurial motivation are conducted mainly through the disciplines of

economics, psychology and sociology. The school of economic thought explains that

entrepreneurs are rational individuals who engage in entrepreneurship solely because of

economic motive (Knight, 1942; Gilad and Levine, 1986; Evans and Leighton, 1989; Kirzner,

1997). Nevertheless, it was argued that economic understanding of entrepreneurial motivation

is limited and other disciplines attempt to explain the issue. Scholars believed that

entrepreneurs are not motivated only by economic factors such as profit (Cole, 1946; Evans,

1949; Shane, 2003), and entrepreneurial motivations are derived from other perspectives, i.e.

psychological and sociological perspectives. From the psychological perspective, it is

believed that entrepreneurial motivation is an internal process which encourages human

15

actions and entrepreneurship is inspired by a series of entrepreneurial characteristics and

traits (Shane et al., 2003). However, it is argued that the explanation for entrepreneurial

motivation in this perspective has never been clearly elucidated e.g. there is an unclear

explanation of the link between the characteristics and traits and entrepreneurial actions

(Johnson, 1990; Shaver and Scott, 1991). Researchers believe that the characteristics and

traits might not generate the process of entrepreneurship (Degeorge and Fayolle, 2011).

Scholars believe that entrepreneurial motivations from a sociological perspective can be used

to explain the origins and motivations of enterprise, better than the economic and

psychological perspective (Stanworth et al., 1989). Factors such as family (Naffziger et al.,

1994), social status (Morrison, 2001), and culture context (Morrison, 2000) are identified to

have a significant effect on entrepreneurial motivation. However it is argued that there is

variance in these factors which depend on the context where entrepreneurship exists. The

results can be different according to differences of context. Hence, further research is

required to know more about the differences, rather than concentrating on similarities

(Morrison, 2000). To summarise, it appears that all three discipline separately studied

entrepreneurship. Rarely did scholars combine the factors from disciplines to explain

entrepreneurial motivation. As a result, to date, there are different views of entrepreneurship

and entrepreneurs. There is no unified concept of what entrepreneurship is and who

entrepreneurs are. Although all three perspectives made significant improvements in

understanding entrepreneurial motivation, recent contextualized studies paint a more complex

picture.

A contextualised view of entrepreneurship emerges to overcome the gaps of the three

disciplines. To clarify, the view is explicated that the researcher could not only focus on

entrepreneurs and assumes that all entrepreneurs are similar. It is evident that contextualised

factors and sociological conditions of where entrepreneurs are embedded significantly reflect

on entrepreneurship. Entrepreneurial motivations, for example, are dissimilar in different

contexts, such as in developed countries versus developing countries where there are

differences in economic, culture, social conditions and history. It is found that in developed

countries profit is seen as an opportunity which pulls individuals into entrepreneurship (Gilad

and Levine, 1986; Campbell, 1992), whereas in developing countries, entrepreneurs

desperately need profit because of negative circumstances such as losing their job and lack of

government support. Therefore, they are pushed into entrepreneurship (Zhuplev et al., 1998;

Benzing and Chu, 2009; Benzing et al., 2009). In transition economics, the creation of

16

entrepreneurship crucially depends on networks and informal connections. It is evident that

without the supports of networks or connections, entrepreneurs face extreme difficulties in

forming their own private business (Smallbone and Welter, 2001).

The studies into entrepreneurial motivation were mainly conducted through quantitative

research. These studies generated a significant approach to the knowledge on

entrepreneurship. Nevertheless, the results provide only a partial explanation of the issue e.g.

researchers identified only motivational factors without further explanation of how and why

entrepreneurs were driven by these factors (Gilad and Levine, 1986; Benzing et al., 2009;

Townsend et al., 2010). Researchers who used secondary data (Evans and Leighton, 1989;

McMullen et al., 2008; Yueh, 2009) might not be aware that entrepreneurs in different

contexts, such as social conditions or type of businesses, could generate variance in

entrepreneurial motivation. It is urged that if researchers seriously want to understand

entrepreneurship, the clarification underpinning these discovered motivational factors must

be investigated (Morrison and Teixeira, 2004). Welter (2011) believes that context such as

historical, temporal, institutional, spatial and social context can provide a better

understanding of entrepreneurs and entrepreneurship.

Finally, entrepreneurial motivation is more complex when looking at entrepreneurs in

different sectors. It is evident in research in the hospitality and tourism field, including

sectors such as apparel retail, interior firms (Marcketti et al., 2006) and creative industries

(Eikhof and Haunchild, 2006) that entrepreneurs are dominated by lifestyle motivation

(Williams et al., 1989; Getz and Carlsen, 2000; Lashley and Rowson, 2010). To be more

specific, they are driven by non-profit motivations which contradict the results from the

economic perspective. In hospitality and tourism, the entrepreneurial motivation is derived

from the majority of research which is conducted in Western contexts such as New Zealand

(Ateljevic and Doorne, 2000), Denmark (Ioannides and Petersen, 2003), UK (Williams et al.,

1989; Szivas, 2001; Morrison and Teixeira, 2004; Lashley and Rowson, 2010) and Australia

(Getz and Carlsen, 2000). In addition, the majority of the studies employed surveys in

investigating entrepreneurial motivation (Szivas, 2001; Getz and Carlsen, 2000; Getz and

Petersen, 2005). Hence it can be argued that the studies provided very simplistic answers to

what motivates entrepreneurs in this industry. Moreover, the lack of research in a broader

context generates biased answers to entrepreneurial motivation.

17

More importantly, researchers believe that entrepreneurial motivation strongly reflects

entrepreneurial strategies (Kuratko et al., 1997; Morrison and Teixeira, 2004) and

entrepreneurial behaviours in operating a business (Getz and Carlsen, 2000). Brandstätter

(1997) believed that differences in motivation would lead to different ways of generating

business activities. To be more specific, scholars believed that entrepreneurial motivation

affected the decision to grow a business (Williams et al., 1989; Peters et al., 2009).

Business growth is a crucial component in entrepreneurship. Kuratko et al. (1997) stated that

the explanation for entrepreneurship could not be completed, if the researchers lack the

understanding of entrepreneurial activities such as business growth. Although business

growth has long been a topic of interest to scholars (Shepherd and Wiklund, 2009) and

received attention decades ago (Stanworth and Curran, 1976), it is argued that studies of

business growth are still rare and poorly understood (Hamilton and Lawrence, 2001).

The study of business growth appears to be of significant importance in the hospitality and

tourism context. It is believed that entrepreneurs who are driven to operate the business by

lifestyle motivation reject to growth in their business. Therefore, the business could

jeopardize the entrepreneurship including destination development (Williams et al, 1989).

Nevertheless, Morrison et al. (2003) stated that misunderstanding of business growth could

obstruct entrepreneurship from receiving proper support in term of resources from the

government.

To conclude, it can be seen from the discussion above that four gaps in entrepreneurial

motivation have emerged. First, the three disciplines alone cannot explain entrepreneurial

motivation. Second, a contextualized view of entrepreneurs has to be achieved cooperatively

to generate a clarified explanation of entrepreneurial motivation. Third, the research needs to

adopt a qualitative in-depth study. Finally, the research could overcome the research gaps by

exploring entrepreneurial motivation of entrepreneurs in boutique hotel in Northern Thailand.

The research is contextually based and it takes into account all possible evidence of context

influences. It combines perspectives by looking at, for instance, the economic context,

family, individuals’ relationship, culture and history.

To emphasise, it is extremely crucial that if a researcher attempts to generate a better

understanding of entrepreneurship, the insight, which comprises in- depth information, into

entrepreneurship is urgently required. It is strongly believed, that the research which is to

provide a clarified explanation underlying entrepreneurial motivation and business growth

18

considering the context in which entrepreneurship exists, would deliver advanced

comprehension of entrepreneurship. The next section provides a discussion on the context of

the research area.

1.3. RESEARCH AREA CONTEXT: THE NORTHERN THAILAND

The purpose of this section is to raise awareness of the fact that context might actually

influence the result of the research findings in the field of entrepreneurs and

entrepreneurship; this research focuses on entrepreneurial motivation and business growth.

Therefore, this section provides discussion on the research context of Northern Thailand.

First, it introduces the geography of Northern Thailand and its focal province, Chiang Mai.

Second, due to the slight differences between Thai people and Northern Thai people, the

section considers both Thai people in general and Northern Thai people in particular. The

section also includes discussion about Thai culture and Northern Thai culture. Third, the

national and Northern economic issues are discussed. Finally, the section explains the

popularity of Thailand and Northern Thailand as tourist destinations.

1.3.1. THE GEOGRAPHY OF NORTHERN THAILAND

Northern Thailand is composed of 17 provinces. Chiang Mai, the focal province, is

approximately 700 kilometres from the capital city of Thailand, Bangkok. Northern Thailand

is rich with beautiful geography, surrounded by mountains and forests (Tourism Authority of

Thailand, 2014). According to Discovery Thailand (2014) Northern Thailand is blessed with

some of the best scenery in the kingdom and is a region of forests and mountains, rivers and

waterfalls, set against the backdrop of swirling mists and fogs. It has many natural borders

with neighbouring countries Burma and Laos (Tourism Authority of Thailand, 2014). In

Northern Thailand, the winters which last from November to February, are significantly

19

cooler. They are the best months to visit Northern Thailand. Although it is quite hot during

the middle of the year, April is a great month, especially during the Songkran Festival when

people splash water over each other (Discovery Thailand, 2014). In terms of population

density, in 2010 Northern Thailand had the lowest among all regions with approximately 67

persons per square kilometre (National Statistical Office Thailand, 2014).

The Thai Tourism Authority (2014) has described Northern Thailand as one of the focal

points of the country. This includes Chiang Mai which is one of the few places in Thailand

where tourists can experience both historical and modern Thai culture coexisting side by side.

The city, for example, presents both centuries-old pagodas and temples and modern Thai

culture. Also, Chiang Mai presents the North’s fascinating indigenous cultural identity, such

as diverse dialects, a delectable cuisine, distinctive architecture, traditional values, lively

festivals, numerous handicraft workshops, northern style massage, and classical dances.

Chiang Mai has unspoiled natural resources including mountains, waterfalls and rivers. One

of the attractions called Doi Inthanon National Park not only contains Thailand’s tallest peak

but also offers other attractions, such as cascades, waterfalls, nature study treks and bird

watching. Other attractions and activities include beautiful and historical temples, elephant

camps, sport activities such as golf, and a grand selection of dining and accommodation.

There are many activities that tourists can enjoy and two weeks in Chiang Mai may not be

enough for travellers to experience all that Chiang Mai has to offer.

1.3.2. THAI PEOPLE AND CULTURE

According to the Thai Tourism Authority (2014) the majority of Thai people are ethnically

Thai (approximately 80%) the remainder being, for example, Chinese, Indian, Burmese and

Laotian. Approximately 95% of Thai people are Buddhist; nevertheless Thai people are

respectful of the religious beliefs of others. Not only is religious tolerance customary in

Thailand but it is also protected by the constitution. Religion pervades many aspects of Thai

life, for example, the temple is the heart of social and religious life and Buddhist holidays

occur regularly throughout the year. The next largest religion in Thailand is Islam, about 4%

of the population, and the majority of Thai Muslims live in the most southerly provinces. The

20

Thai language, which is spoken by more than 92% of the population, is the official language

of Thailand. Thai has a variety of dialects. While the majority of Thai people speak and

understand the central Thai dialect, there are various regional dialects. In northern Thailand, a

distinctive form of Thai is still spoken by the local inhabitants.

Many sources discuss the people and culture of Thailand. They agree that Thais are tolerant

of individualism (eDiplomat, 2014) e.g. they avoid conflict and prefer to compromise

(Thailand Guru, 2014). Displays of emotion in public are presented in a negative light. Even

when Thais are frustrated or upset, they strive to maintain a positive and friendly attitude, a

sense of humour and smile (Reach To Teach Recruiting, 2014). Thais place great value on

forms of courtesy such as politeness, respect, genial demeanour and self-control, thus they

maintain harmonious relations (Kwintessential, 2013). According to a variety of sources, it is

agreed that the Thai culture is deeply influenced by religion which plays a huge role in day-

to-day life (Kwintessential, 2013; Reach To Teach Recruiting, 2014). People from different

regions may present slightly different characteristics. Northern Thai people are seen as the

most compassionate and peace loving (Thailand Guru, 2014). The Tourism Authority of

Thailand (2014) mentions that Northern Thai people are recognised as kind-hearted, generous

people, having a simple life style.

Thais respect hierarchical relationships and examples are presented vividly in Thai family life

(Kwintessential, 2013). Age, for example, is important and it is essential to show respect to

elders. Young siblings have to listen to older brothers and sisters. The oldest person in the

family is always listened to and revered (Off The Path travel, 2012) and most fathers tend to

make decisions on major issues (Youth For Understanding, 2013). Children are taught to

honour parents (Kwintessential, 2013). Thais express their gratitude towards their parents

who bring up and take care of them by doing what their parents’ desire, even when they are

adults. Family is more important than a job. Children commit to parents’ desire although the

actions may negatively impact their job. There are other interesting aspects of Thai family

culture which are different from Western culture including that Thais live with their family.

They do so while they are at university, after graduation and beyond (James, 2010). Thais do

not widely believe that a child must leave the nest to become a real adult. It is completely

acceptable that children choose to stay at home and help their parents’ business. Some

children build houses on their parents’ land and raise their family there (Off The Path travel,

2012). Thai teens are attached to their parents and normally ask for the parents’ advice or

approval (Youth For Understanding, 2013).

21

Northern Thai people also emphasise the importance of hierarchical relationships and family.

This is vividly presented through one of the essential traditions, the Songkrang festival,

which Thai people recognise as the Thai New Year ceremony. During this festival, people

splash water over others to bring luck in the New Year. For Northern Thai people, the

Songkran festival is a special time when the younger generation pay respects to the older

generations, such as grandparents, parents, aunts and uncles, as well as older people in the

community, including supervisors at work. Young people prepare a bowl of water and pour

the water into the hands of the older people. At the same time, young people ask for

forgiveness for mistakes they have made and people of the older generations bless them. The

purpose of the tradition is to express thankfulness towards the older generations. It reminds

the younger generation to recognise their gratitude towards the older generations

(Prapayneethai, 2014). This tradition is unique in Northern Thai society, and may partly

generate the politeness with which the younger generation respect and obey the old

generation.

The personality and culture of Northern Thai people as discussed above seems to agree with a

study by Hofstede (2014). While the above states that community relationships are important,

this author found that Thailand is a highly collectivist country. The society has created strong

group relationships in which everyone takes responsibility for fellow members of their group.

Since it is also evident that respecting the older generation is also essential, Hofstede (2014)

discovered that inequalities between individuals were accepted in Thai society. He said that

loyalty, respect and deference to superiors appear to be in return for protection and guidance.

When comparing Thailand and the United Kingdom (UK), where most research on

entrepreneurs and entrepreneurship in the hospitality and tourism sector is conducted, the

differences are clear. In the UK, it is agreed that inequalities among people should be

minimised and people should be treated as equal. It is believed that a person’s birth status

should not limit how far an individual can go in life.

This can be seen to be related to the work of Morrison and Teixeira (2004) who conducted

the research in the UK. They found that individuals became entrepreneurs to minimise

inequality and encourage equality in society. While Thailand has a high commitment to the

member group, such as family, extended family or extended relationships, the UK has the

highest individualistic score. This score is similar to other developed countries, such as

Australia and the USA. Unlike Thailand, where community is important, individuals are

taught to think about themselves and seek their own personal fulfilment. Therefore, it might

22

be common to find that entrepreneurs in the USA, Australia and the UK have a high need for

achievement (McClelland, 1965), independence (Lecornu et al., 1996), or a high need for

locus of control (Kuratko et al., 1997), while these characteristics might be insignificant in

Thailand. Further explanation about entrepreneurial characteristics can be found in section

2.4. Furthermore, Hofstede (2014) revealed that the UK and Thailand have different levels of

uncertainty avoidance. The UK is found to have a low score on uncertainty avoidance and

being comfortable with ambiguous situations. On the contrary, Thailand prefers having strict

rules, laws, policies and regulations to control everything to eliminate the unexpected.

Society does not readily accept change and is highly risk adverse. It is stated that Thai people

are not inclined to take risks e.g. they like stable jobs, such as government jobs and do not

like business jobs which demand risk (Covernant Ministries in Thailand, 2014). Praag and

Cramer (2001) found that risk aversion is a serious impediment to entrepreneurship.

1.3.3. THE NATION AND NORTHERN ECONOMIC ISSUES

Thailand is recognised as one of the countries in East Asia which is an emerging economy

defined as low-income, rapid-growth country where economies are reformed to increase the

number of transactions (Hoskisson et al., 2000; Ahlstrom and Bruton, 2006). In emerging

economy countries, liberalization is adopted as the primary engine of growth (Hoskisson et

al., 2000). Likewise, Thailand is recognised for the openness of its economy and its

willingness to accept direct foreign investment. Thailand has taken only a few decades to

transform itself from a low-income to a middle-income country (Thomas White International,

2014). Although the country faced internal political problems, natural disasters (flooding),

and other external negative circumstances which affected the economy, the government has

tried to launch policies which would help improve the national GDP growth rate. In 2009, the

growth of GDP was -2.3% but it increased to 7.3% in 2010. With the natural disasters in

2011, the growth of GDP was 1.0%, but increased to 6.5% in 2012 and 3.0% in 2012 (Office

of the National Economic and Social Development Board, 2014). The development of

enterprises in the country has been encouraged by government policy and also the assistance

of financial institutions outside the country e.g. the International Finance Corporation is a

23

supporter of financial institutions providing financial support to enterprises in Thailand. It

also invests in rural infrastructure, such as cross-border transportation, that opens up regional

commerce (International Finance Corporation, 2014). It can be said that the emerging

economy is one of the factors that is encouraging development of entrepreneurship in

Thailand.

Situated approximately 700 kilometres from the capital city, Northern Thailand is assumed to

be adapting more slowly than Central Thailand. Lack of variety in public and private

transportation is one of the significant indicators in economic development of the region. It

has only one small international airport situated in Chiang Mai, the focal province of

Northern Thailand. There is no public transportation such as bus, train, underground train or

sky train within each province. There is transportation across provinces; however it is

considered very poor. The train service constructed over 100 years ago is a limitation and has

never been properly improved. Moreover between 2012-2013, the trains accidently went off

the rails 202 times. In the year 2012, the trains accidently went off the rails 89 times

(approximately 7 times a month) and in 2013, 113 times (approximately 11 times a month)

(Mea Luk Jun, 2013). Buses are the most popular choice for travelling across provinces,

although there are only a few main roads with two lanes in each direction. There is no online

booking system. Tickets are sold at bus stations and only a small number of private

companies have call centre systems (Sombattour, 2012; Nakhonchai Air, 2014). The poor

transportation is assumed to influence the slow development of Northern Thailand. Rodrigue

(2012) noted that transportation has direct and indirect impacts on economic development.

Transport enables larger markets and enables time and costs savings. It also impacts the price

of commodities, goods and services and their variety (Rodrigue, 2012).

While it is assumed by Gilad and Levine (1986) that negative economic circumstances, such

as high unemployment, can encourage the development of entrepreneurship, the

unemployment rate in Thailand is low and decreasing almost every year. Thailand has the

seventh lowest unemployment rate in the world and only 10% of the population live below

the poverty line (Tourism Authority of Thailand, 2014). In 2009, the unemployment rate was

1.5 %. The rate decreased to 1.0% in 2010 and to 0.7% in 2011 and has remained stable since

then (Labour Market Research Division, 2012). Northern Thailand has also been found to

have a low unemployment rate of only 0.6 % since 2011 (National Statistical Office

Thailand, 2014).

24

1.3.4. NORTHERN THAILAND AS TOURIST DESTINATION

With its uniqueness of geography and population, it is not surprising that Northern Thailand

is voted to be one of popular destinations in Thailand. In 2012, its focal point (Chiang Mai

province) was selected as one of the top 25 global destinations by worldwide travellers. It

was put among world class destinations like London, New York, and Istanbul (The Nation,

2012). Northern Thailand is unique in terms of destination since it contrasts greatly with busy

Bangkok and the high energy beach resorts of the south (Thailand For Visitors, 2014).

Although some of the tourism statistics of Thailand are not up to date and easy to find, the

Department of Tourism (2011) revealed that, from 2011 to 2012, the number of tourists who

visited Thailand increased by 14.82%. In the same period, the number of tourists in Northern

Thailand increased by 21.22%. The percentage increase is higher than the South (15.60%),

Central (12.26%), East (12.25), and North East (5.12%). Nevertheless, it has to be noted that

some of these regions had a higher number of tourists than Northern Thailand. In the year

2012, for example, almost 130 million visitors visited Thailand and approximately 16 million

tourists visited Northern Thailand while the South and East of Thailand had approximately 27

million and 18 million tourists. Approximately 13% of total tourists visited Northern

Thailand in 2012. When comparing the percentage of tourists who visited Northern Thailand

to North East Thailand, where the geography is quite similar, the number of Thai tourists are

quite similar, but Northern Thailand had approximately 3 million foreign tourists, which is

more than Northern East Thailand which had only approximately 40,000 tourists. Moreover,

tourists who visited Northern Thailand in 2012 spent longer there, with an average length of

stay of 2.68 days, than those who visited the North East, where the average length of stay was

2.46 days.

It should be mentioned that, in the past few years, Thailand has faced many negative

situations which have decreased the number of tourists from abroad e.g. significant dips were

the result of the SARS epidemic and the Tsunami at the end 2004. There were also the effects

of the global recession from the end 2008, political disturbances in 2009 and 2010 and floods

at the end 2011 (ThaiWebsites, 2014). Recently, the tourism industry has also been

threatened by the current political turmoil, the escalation in protests since the end of 2013 and

25

the coup d’état in 2014. It is stated that, because of this political turmoil, monthly visitor

numbers have fallen by approximately 16% (Leggett, 2014).

Due to the negative issues that affect the tourism sector in Thailand, the government has tried

to generate policy to help the sector e.g. the increase in domestic tourists might be due to the

support of a campaign created by the government, called ‘Thai Tiew Thai’. It is an exhibition

set up in Bangkok, where accommodation owners and hotel agencies in Thailand sell rooms

and travel packages in advance at low prices (Thai Teaw Thai, 2014). However, because this

fair is set up in Bangkok which is the capital city situated in the centre of Thailand, it is

thought to be difficult for small business owner in other provinces, especially in Northern

Thailand, to attend the fair. Despite this, it is thought to affect the supply and demand of

businesses that affect the growth of the tourism and hospitality industry. It is evident from

tourism statistics that the number of domestic travellers continues to increase every year. In

2011 the number of Thai tourists increased by 10.57 % and 14.15 % in the year 2012

(Department of Tourism, 2011).

While negative issues mentioned above had an impact on Thailand, the Northern Thailand

tourism sector is claimed to be significant as an industry which protects the Northern region

from severe economic disaster (Bank of Thailand, 2008). The Bank of Thailand (2008), for

example, reported that although Thailand faced political turmoil, the tourism sector in

Northern Thailand continually expanded in 2013. However, the negative circumstances did

affect the growth of the number of tourists travelling to Northern Thailand in the past, for

example, there was a drop in the occupancy rate of accommodation, in Northern Thailand,

from 31.16% to 30.47% in 2009 to 2010 (Department of Tourism, 2011). However, this was

not a significant drop that might also have been caused by oversupply. Contrary to the

decreasing occupancy rate is the number of accommodation establishments in Northern

Thailand. From 2007 to 2010, the number of hotel establishments rose from 1,166 to 1,344,

an increase of 15.27%. The number of hotel establishments, especially ‘boutique hotels’

continued to rise in 2011 (Bank of Thailand, 2008).

The tourism and hospitality industry contributes not only to the regional economy, but also to

the national economy. Since Thailand is one of the premier tourist destinations in the world,

and it is stated that Thailand’s economy depends greatly on the tourism and hospitality

industry (Bank of Thailand, 2008). Although the Thai economy only receives around 7% of

its GDP from international tourism revenue (Department of Tourism, 2011), it is found that

26

indirect impact from the industry contributes further to more than 20% of the GDP (Leggett,

2014). According to previous research, it is believed that entrepreneurship has greatly

contributed to the tourism and hospitality industry. Russell and Faulkner (2004) state that

entrepreneurship is a critical factor in tourism development, both globally and regionally.

They explain that while tourism is a dynamic industry, one of the main agents of change are

the numerous entrepreneurs who are constantly identifying opportunities. Kokkranikal and

Morrison (2002) believe that the tourism industry benefits destination communities by the

generation of revenue and employment, regional development and overall economic

prosperity. However, the authors are also aware that there are negative impacts from the

tourism industry, for instance social problems such as drug abuse and the commercial sex

industry. While there is limited research on entrepreneurship in relation to destinations

(Kokkranikal and Morrison, 2002; Russell and Faulkner, 2004), the tourism and hospitality

industry can also be seen to be encouraged by the external environment. Russell and Faulkner

(2004), for example, state that without a good environment, entrepreneurship might not be

sustainable. The authors found that entrepreneurs in Coolangatta in Queensland, Australia,

experienced early tourism success. However, because the environment is not conducive to

growth-yielding entrepreneurship, the entrepreneurs were unable to adequately address the

changing consumer demands and hence missed opportunities to sustain impetus. It is also

stated that while terrorism, natural disasters and wars will immediately have negative

consequences for some destinations, other destinations might be positively affected because

of these outcomes. Butler (1980) who developed a tourist area life cycle (TALC) did not state

the importance of entrepreneurship toward the evolution of destinations. He explained that

the cycle of area evolution could be predicted by the number of visitors and provided

facilities. Nevertheless, when Hovinen (2002) reinvestigated the destination life cycle model,

he found that entrepreneurs contributed essentially to the cycle.

To summarise, in an emerging economy, while the government supports the development of

industries, understanding the motivation to create and operate businesses is considered crucial

to development (Gilad and Levine, 1986; Campbell, 1992). In Northern Thailand, the tourism

industry is seen as important to the region economically (Bank of Thailand, 2008), therefore

understanding entrepreneurial motivation to create and operate businesses, including business

growth, in the sector can be of benefit. The example of the development of entrepreneurship

in Northern Thailand can be seen from the increase in the number of new accommodation

establishments, especially a significant rise in the number of boutique hotels in Northern

27

Thailand. The researcher decided to investigate this context because not only does

knowledge contribute to entrepreneur and entrepreneurship and the area’s economy, it also

generates a better understanding of the boutique hotel which has recently received attention

from scholars who have generated various results from this issue.

1.4. THE RESEARCH JUSTIFICATION

The attempt to understand entrepreneurial motivation has been around for many decades. The

studies that are created from economic, psychological and sociological perspectives have

identified various motivational factors that explain why individuals engage in

entrepreneurship. Nevertheless, the results provide a partial explanation for entrepreneurial

motivation and entrepreneurship. There is an urge for further research on the issue. This

research adopts a sociological approach to entrepreneurial motivation which goes beyond the

identification of motivational factors. It explores the insight of these motivations and attempts

to generate a clarified explanation of what precisely cause the establishment and operation of

entrepreneurship. To be more specific, it seeks for the explanation of the underlying meaning

of entrepreneurial motivation which will be extracted directly from the entrepreneurs within a

specific context. It is argued that context is a significant ingredient which assists in

generating a better approach to entrepreneurship (Zahra, 2007; Welter, 2011), and so this

research attempts to reveal how the considering of context could broaden the understanding

of entrepreneurial motivation.

This research investigates business growth because it not only provides insight into

entrepreneurship (Kuratko et al., 1997), it is also argues that the recent knowledge on

business growth is still fragmented and features a wide range of growth aspects (Dobbs and

Hamilton, 2007). Moreover, while lifestyle entrepreneurs, who dominate the hospitality and

tourism sector, resist business growth, this research could generate a clearer explanation of

this phenomenon from the investigated entrepreneurs. It would seek a clarification of the how

and why of business growth. Since the research is conducted in the context of a developing

country which has a different context in terms of culture, history and people from developed

28

countries such as the UK, Australia, New Zealand and Denmark, the results add to the

knowledge of entrepreneurship in the hospitality and tourism sector. The data is also

believed to generate insight into business growth and entrepreneurship.

Finally, the boutique hotel is considered as a new type of hospitality and tourism business

(Untong et al., 2011) that has recently interested scholars. While the majority of studies were

conducted from the customers’ perspective, this research explores boutique hotels from the

perspective of the investigated entrepreneurs. The data which are acquired from the

entrepreneurs are sought to add to the study of boutique hotels. The findings enrich the

existing knowledge and can broaden the perception of the issue.

1.5. THE RESEARCH AIMS AND RESEARCH OBJECTIVES

The research justification leads to three research aims:

To provide a clarified explanation of what precisely motivated the establishment and

operation of small boutique hotels

To clarify why the investigated entrepreneurs decided to grow their business and what

growth strategies they employed

To acquire background information about boutique hotels and the meanings

associated with the term ‘boutique hotel’ by the investigated entrepreneurs

The three research aims lead to three research objectives as follows:

(OJ1) To identify and gain an insight into the motivation of entrepreneurs in

boutique hotels in Northern Thailand

(OJ2) To identify and gain an insight into the business growth of boutique hotels in

Northern Thailand

(OJ3) To compile and synthesise the background information about the boutique

hotels

29

1.6. ORGANIZATION OF THE THESIS

In order to complete the objectives of the thesis, the researcher carefully examined previous

research, conducted field research and finally created this thesis accordingly. The thesis has

been divided into seven chapters:

Chapter One states the research rationale which provides an important discussion on the

debates on entrepreneurial motivation from economic, psychological and sociological

perspectives, including research on entrepreneurial motivation in the hospitality and tourism

field. The overviews of knowledge on entrepreneurial motivation generate the crucial

argument on contextualising entrepreneurship. Since the research recognises the importance

of research context, the chapter introduces the research context of Northern Thailand. Finally,

the chapter states the research justification, research aims and research objectives.

Chapter Two examines the relevant literature on entrepreneurial motivation which is

divided into three perspectives: economic, psychological, and sociological perspective. In

each perspective, entrepreneurial motivations which were discovered from previous research

are identified. The researcher provides the evidence of previous research methodology and

research context which was conducted to generate the result of entrepreneurial motivation

factors. The chapter also includes the argument on each perspective, including the argument

on motivation factors discovered by previous research.

Chapter Three provides general knowledge on business growth. This was actually

prepares the reader and the research before the view of the investigated entrepreneurs toward

business growth is revealed in later chapter. Therefore, the chapter includes six different

approaches to the study of business growth, the introduction of various factors which

influence the growth of business. This chapter also provides a discussion on boutique hotel,

including its definition and characteristics.

Chapter Four indicates the research methodology underpinning the study. Firstly, the

chapter states the overview of the previous discussion on the issues of entrepreneurial

motivation and business growth that then leads to the generation of research questions and

research objectives. Secondly, the chapter discusses research philosophy and research

approach, including the justification of the selected approach. Thirdly, it identifies the

30

research design which includes the discussion of selected method of unstructured interview,

research interview guide and questions and research sample. Quality of qualitative research

and research ethical issues is also provided in this section. Fourthly, the chapter describes the

data collection, the research’s preliminary study, and the research’s main study. Finally, this

chapter discusses the analysis of the data.

Chapter Five reports the findings derived from the process of data analysis. The chapter is

composed of three main findings which are the entrepreneurial motivations, business growth

and the boutique hotel.

Chapter Six discusses the findings with the existing theory concept. It introduces the

relationship of the findings and the previous literature. Most importantly, the chapter reveals

how the findings make explicit the contextualised view of entrepreneurship.

Chapter Seven concludes the study by restating the research objective and linking it to

the research findings. It then emphasises the contributions of the study, especially the

contributions to entrepreneurship field and hospitality and tourism field. Finally, the chapter

states the research’s limitation and further research recommendations.

31

CHAPTER TWO: ENTREPRENEURIAL MOTIVATIONS

2.1. INTRODUCTION

The objective of this chapter is to review entrepreneurial motivation in previous research.

From the literature, it was discovered that entrepreneurial motivation can be separated into

three perspectives which are economic, psychological and sociological. This chapter,

therefore, reviews entrepreneurial motivation in each perspective. There is also a discussion

of the arguments which are found within each perspective. Finally, the chapter provides a

review of entrepreneurial motivations discovered in the tourism and hospitality industry

which generates additional understanding of the issue.

2.2. ENTREPRENEURIAL MOTIVATION

Evans (1949) believed that an explanation of the existence of entrepreneurs and

entrepreneurship would generate and deepen the extent of knowledge and understanding of

these two. The author suggested that in order to fully comprehend entrepreneurs and

entrepreneurship, entrepreneurial motivation in creating and operating businesses must be

studied. A review of previous literature on entrepreneurial motivation reveals that

entrepreneurial motivation literature encompasses three disciplines: economics, psychology,

and sociology. These three disciplines generate different approaches to entrepreneurial

motivation and subsequently reveal different factors. In order to present the differences

32

between these perspectives, the next section will discuss the presence of entrepreneurial

motivation factors within each perspective.

2.3. ECONOMIC PERSPECTIVE

Hamilton and Harper (1994) believed that economists devoted more attention to the

knowledge of entrepreneurship and entrepreneurs, although the authors stated that

entrepreneurial motivation has more pertinent data from the psychological and sociological

perspective. The authors found that there was a plethora of empirical studies that focused on

the operational process of entrepreneurship, the supply of entrepreneurs, included

entrepreneurial motivation. Three essential factors that economists believe lure an individual

to become an entrepreneur include economic incentives, such as profit, economic positive

conditions, such as economic expansion, and economic negative conditions, such as a high

unemployment rate. Campbell (1992) stated that economic incentives and conditions have

been identified as playing an important role in encouraging individuals to become

entrepreneurs. Gilad and Levine (1986) reviewed entrepreneurial motivation factors and

concluded that, according to economic conditions, entrepreneurial motivation can be

separated into two broad groups of factors, pull factors and push factors. They believed that

individuals become involved in entrepreneurship in two ways. The first is that individuals are

encouraged by positive situations; for example, they recognise the opportunity to generate

profit and therefore decide to enter entrepreneurship. Thus, they were pulled by positively

economic factors into entrepreneurship. The second is that individuals have no choice but to

enter entrepreneurship because they are pressured by negative circumstances. Thus, they

were pushed by negatively economic factors into entrepreneurship.

Early research on entrepreneurship from the economic perspective, such as that conducted by

Knight (1942), showed that entrepreneurs were motivated by profit to create new businesses.

According to Knight (1942) economic incentives referred to rewards such as profits earned

from the operation of a business. Slightly different from Knight (1942), Kirzner (1997) stated

that economic incentives were opportunities which led to rewards. Entrepreneurs would earn

33

rewards only when they noticed, grasped the opportunities and succeeded in anticipating

precisely the changes in supply and demand conditions. Kirzner (1997) proposed that it was

actually profit opportunity that lured individuals into entrepreneurship. Since entrepreneurs

might not be certain whether they would profit from business, profit opportunity can be better

described as a factor motivating an individual to become an entrepreneur. Gilad and Levine

(1986) supported this idea. They suggested that individuals were pulled into entrepreneurship

because of the perceived prospects offered and growing opportunities. Nevertheless, these

two authors agreed that the main entrepreneurial motivation was assumed to be profit or the

opportunity to generate profit. Although this notion was disputed by Cole (1946), who stated

that maximizing profit was merely an unproven hypothesis, later research discovered that

profit is, indeed, a factor that motivates entrepreneurs to enter entrepreneurship. Table 2.1

demonstrates some of the examples from previous literature that show profit is a factor that

persuades individuals to enter entrepreneurship. The purpose of the table is to outline

different approaches to the study of the entrepreneurial motivation from the economic

perspective.

Table 2.1: Profit as Entrepreneurial Motivation

Author(s

)

Type of

article

Research result Context

Campbell

(1992)

Theoretical:

conceptual

model

A decision to become an

entrepreneur depended on

positive expectations of

entrepreneurship. The

benefits were compared with

benefits of employment

The author generated the model

by reviewing previous research

which focuses on economic

conditions in relation to

entrepreneurship

Kuratko

et al.

(1997)

Empirical:

quantitative

method

Entrepreneurs were

motivated by extrinsic goals

focusing on wealth, such as,

acquiring personal wealth,

increasing personal income,

and increasing income

opportunities.

Conducted with entrepreneurs in

Indiana, Ohio, Michigan, Illinois

and Kentucky. It generated a wide

variety of individual participants,

yet concentrated in retail and

service sectors.

Zhuplev Empirical: Among discovered Russia faced economic hardships

34

et al.

(1998)

quantitative

method

entrepreneurial motivation

factors, the research found

that small business owners in

Russia were motivated to

make money to become

wealthy.

and day-to-day pressures

associated with business survival

under the transition economic

environment and lifestyle, as well

as the effect of the difficulties of

the early state of entrepreneurship

in the post-communist Russia.

Gilad and Levine (1986), who conducted research into entrepreneurial motivation using

secondary data from several economic situations, found that positive economic conditions,

such as economic expansion which supported the perception of profit opportunity, were also

considered a factor that motivated individuals to become entrepreneurs. Also using secondary

data from several countries, McMullen et al. (2008) found that favourable economic

circumstances can encourage entry into entrepreneurship. The authors discovered that a

positive perspective for entering entrepreneurship was created by getting rid of barriers and

generating positive economic circumstances such as ease of opening and operating

businesses, absence of burdensome tax rates and appropriate government monetary policy. It

can be seen that economic conditions support the perception of reward opportunities and are

also considered as factors that influence the decision to become an entrepreneur (Gilad and

Levine, 1986).

While evidence shows that there is an increasing supply of entrepreneurs due to opportunities

to make profit and positive economic conditions, research has also revealed that the

development of entrepreneurship appears in areas where there are economic constraints

(Benzing et al., 2009). It is assumed that some areas, which are less developed and do not

have any support from government policy, might benefit some entrepreneurs who want to

avoid intensive competition. Thus, it is possible that those areas could have growing numbers

of entrepreneurs. According to this, positive economic factors cannot be the only group of

factors that attract individuals to entrepreneurship. While there are individuals who are

encouraged by positive conditions or pulled into entrepreneurship, it should be emphasised

that there are also people who are motivated by other factors.

Gilad and Levine (1986) found that individuals can be pushed by negative economic

conditions. The authors explained that individuals decided to enter entrepreneurship when

35

they were subjected to an adverse experience, such as unemployment. It was believed that an

increase in unemployment would stimulate entrepreneurial activities. There is also other

literature that found that economic conditions influenced the decision to enter

entrepreneurship. Table 2.2 identifies negative economic conditions that push individuals into

entrepreneurship.

Table 2.2: Negative Economic Conditions as Entrepreneurial Motivation

Author(s) Type of Article Research Result Context

Benzing et

al. (2009)

Empirical:

quantitative

method

Income is relatively low and employment is

unpredictable, working age population has

been growing at a faster rate than job creation.

Turkey

Benzing

and Chu

(2009)

Empirical:

quantitative

method

Entrepreneurs might be motivated by

economic situations as they are considered to

be low-income countries.

Kenya,

Ghana, and

Nigeria

Gilad and

Levine

(1986)

Empirical:

Secondary data,

qualitative

method

Unemployment duration and the number of

individuals unemployed for 15-26 weeks had

a positive and significant effect on business

formation.

United

stated of

America

Evans and

Leighton

(1989)

Empirical:

Secondary data,

qualitative

method

Unemployed workers are more likely to

choose self-employment.

United

stated of

America

Gilad and

Levine

(1986)

Empirical:

Secondary data,

qualitative

method

Experiencing a career setback which

generates a feeling of displacement and the

increasing frequency of high unemployment

might be reasons why people enter

entrepreneurship.

United

stated of

America

Evans and

Leighton

(1989)

Empirical:

Secondary data,

quantitative

method

Lower-paid wage workers and people who

have frequently changed jobs are more likely

to enter self-employment.

United

stated of

America

Herron and

Sapienza

Theoretical:

conceptual

Dissatisfaction with pay level encouraged the

search behaviour that later led to

-

36

(1992) model entrepreneurial activities.

Yueh

(2009)

Empirical:

Secondary data,

quantitative

method

Individual’s fear of losing job or those who

are laid off are likely to become entrepreneurs

China

Tyrowicz

(2011)

Empirical:

Secondary data,

quantitative

method

Self-employment is important for individuals

who are in less advantageous positions in the

labour market.

Poland

According to these previous studies, knowledge has been gained of entrepreneurial

motivation from an economic viewpoint. Nevertheless, it appears that the dominant

neoclassical school of economic thought seems to strive to explain entrepreneurs only as

rational individuals who engage in entrepreneurship solely because of economic motives.

However, some researchers believe entrepreneurs are not encouraged only by these economic

factors. Cole (1946), for example, believed that there are other forces that influence entering

entrepreneurship and the strong lure of profits varied in different time periods. Evans (1949)

believed that motivations to become an entrepreneur were different among types of

entrepreneurs and, though profit had been mostly assumed to be the entrepreneurial

motivation, there were also other motives not related to profit. Shane (2003) argued that

although the research on economic forces and entrepreneurial opportunities had greatly

enhanced the understanding of entrepreneurial activity, these activities actually depended on

decisions that people made. The author implies that in order to understand the creation of

business, the study of entrepreneurs as individuals would be helpful. Segal et al. (2005) add

that although external forces, such as economic conditions, provide evidence to support

entrepreneurship, it is likely that other career options are also considered. Therefore, it is

possible that research which focuses only on the economic variables relating to individuals

entering entrepreneurship may lack appropriate direction (Hamilton and Harper, 1994).

Research offers evidence that entrepreneurial motivations come not only from economic

factors but also from others. Moreover, there are differences in entrepreneurial motivation

between countries. Kuratko et al. (1997), for example, discovered that entrepreneurs are

encouraged to set up new businesses by both extrinsic goals, such as wealth, as well as

37

intrinsic goals, such as recognition, challenge, excitement, growth, and accomplishment.

Zhuplev et al. (1998) discovered that in the US, the main motivation to enter entrepreneurship

is associated with self-accomplishment, while the desire to generate wealth is an essential

motivation among Russian entrepreneurs. It can be assumed that while entrepreneurs in some

countries might mainly be encouraged by monetary motivation, those in others might

primarily be motivated by human and social considerations. Hamilton and Harper (1994)

believed that the process of entrepreneurship is not only stimulated by economic factors but

also by other factors with psychological and sociological perspectives.

Entrepreneurial motivation might also vary between different industries. Recently, in the

tourism and hospitality industries (see section 2.6), it has been discovered that entrepreneurs

are motivated more by non-economic factors than economic factors. Dewhurst and Horobin

(1998) stated that economic knowledge and what can be learned from previous literature on

entrepreneurial motivation might not apply to these industries. This implies that in the

tourism and hospitality industries, the explanation for the supply of entrepreneurs and

entrepreneurship might differ from the factors identified in economic perspectives.

Another argument that is derived from economic research about entrepreneurial motivation is

that while some of the entrepreneurial motivations from an economic viewpoint were

assumptions and were generated from secondary data (for example, Gilad and Levine, 1986;

Evans and Leighton, 1989), these motivations might not be enough to give a full

understanding and knowledge of entrepreneurs and entrepreneurship. Morrison and Teixeira

(2004) warn that understanding the factors that encourage individuals to become

entrepreneurs is essential; therefore, researchers must be cautious about the hidden meaning

of the motivation factors. Although Benzing et al. (2009), for example, found that profit is

identified as a primary motive to entrepreneurship among entrepreneurs in Turkey, the

researchers investigated the research context and believed that these entrepreneurs might

rather be pushed by poor economic circumstances. Benzing and Chu (2009) presented a

similar view point. The authors believed that entrepreneurs in Kenya, Ghana and Nigeria

identified wealth and income as their motivations to start their small businesses but the

authors noted that these entrepreneurs might also have been influenced by the economic

situation. While results in developed countries see profit as a factor leading to the acquisition

of personal wealth, increasing personal income and increasing income opportunity as appear

in Kuratko et al.’s research (1997), profit can be seen as a survival factor in poor economic

contexts such as Turkey (Benzing et al., 2009) and Kenya, Ghana and Nigeria (Benzing and

38

Chu, 2009). The argument has raised questions regarding the previous research on

entrepreneurial motivation as to whether the motivation factors emerging from the economic

perspective are, indeed, essentially the motivation for a business start-up and whether finding

only motivation factors is enough. Although entrepreneurs state that incentives motivated

them to become entrepreneurs, poor economic conditions might actually have pushed them to

entrepreneurship. This suggests that researchers have to be discerning when identifying

entrepreneurial motivations, since the surrounding contexts and other factors might also have

influenced the decision to enter entrepreneurship. Morrison and Teixeira (2004) stated that

without the explanation of the entrepreneurial motivation factors including hidden variables

and relationships, research does not have the potential to answer the question of what

motivates entrepreneurs to create and operate businesses. Moreover Ogbor (2000) criticises

traditional theory of entrepreneurship, saying that it is biased by not only prevailing society

but also unexamined and contradictory assumptions and knowledge about the reality of

entrepreneurs:

“… the concept of entrepreneurship is discriminatory, gender-biased,

ethnocentrically determined and ideologically controlled, sustaining not only

prevailing societal biases, but serving as a tapestry for unexamined and contradictory

assumptions and knowledge about the reality of entrepreneurs” (Ogbor, 2000, p.

605).

As Innis (1944, p.97) stated, “The use of economic theory as a device for economizing

knowledge should be extended and not used to destroy other subjects or an interest in them”,

and researchers are encouraged to learn more in other disciplines, in order to discover

essential motivating factors and the relationship between these various factors. Economic

factors might partially contribute to entrepreneurial motivation (Campbell, 1992), but it is

evident that psychological and sociological perspectives also concentrate on factors

influencing individuals to become entrepreneurs (Hamilton and Harper, 1994). The next

section is a discussion of entrepreneurial motivation from a psychological perspective.

39

2.4. PSYCHOLOGICAL PERSPECTIVE

Research on entrepreneurial motivation from the psychological perspective focuses on

finding traits and characteristics of entrepreneurs and attempts to link these traits and

characteristics to the entrepreneurial process. The need for achievement as discovered by

McClelland (1965) is recognised as a pillar for psychological studies. It leads to the

generation of other important entrepreneurial characteristics discovered in the psychological

perspective. McClelland (1965) believed that individual characteristics encourage the

decision to become an entrepreneur and the need for achievement is revealed to be the main

characteristic of entrepreneurs and is, therefore, used to separate entrepreneurs from non-

entrepreneurs. Examples of other characteristics discovered in earlier research, are shown in

Table 2.3 below.

Table 2.3: Entrepreneurial Characteristic(s) Influencing the Formation of Enterprises

Author(s) Characteristic(s) influencing formation of enterprises

McClelland (1965) A high need for achievement was found in entrepreneurial

occupations.

Brandstätter (1997) Owners who had personally set up their businesses were

emotionally more stable and more independent (self-assertive).

Zhuplev et al. (1998) The most important motivations for entrepreneurial involvement

were associated with self-accomplishment.

Praag and Cramer

(2001)

Risk attitude had an impact on the decision to become an

entrepreneur.

Shane (2003) The researcher identified five aspects of personality and motive

found in earlier research that influenced the exploitation of

entrepreneurial opportunity: extroversion, agreeableness, need for

achievement, risk-taking, and independence.

Segal et al. (2005) Characteristics of tolerance for risk and self-efficacy significantly

predicted self-employment intentions.

Yueh (2009) Self-belief that one had the requisite skills was the main reason for

entering into self-employment and which would also testify to the

significance of personal drive. Moreover entrepreneurs are more

40

risk- loving than non-entrepreneurs.

Townsend et al. (2010) A robust predictor of start-up entrepreneurs is confidence in one’s

ability to perform tasks relevant to entrepreneurship.

Tyszka et al. (2011) The need for independence and achievement were of higher

importance to opportunity-driven entrepreneurs than non-

entrepreneurs.

Dewhurst and Horobin (1998) stated that the most commonly discussed entrepreneurial

characteristics included a need for achievement, a risk-taking propensity, independence and a

need to be the locus of control. Self-efficacy from the psychological perspective is also

repeatedly discussed among researchers and is believed to be a common motivating factor

which encourages start-up activities (Townsend et al., 2010). Table 2.4 below identifies

research findings and a short discussion of these characteristics.

Table 2.4: Entrepreneurial Characteristics

Characteristic(s) Author(s) Finding

Need for

achievement: The

desire to excel, to

achieve a goal in

relationship to a set

standard

McClelland

(1965)

An analysis of the occupational positions of 55

Wesleyan graduates indicated that significantly more of

those originally scoring high in need achievement than

of those scoring low in need achievement were found in

entrepreneurial occupations.

Shane

(2003)

In entrepreneurship, entrepreneurs have to meet

challenges, plan tasks, and put forth effort to bring

ideas to fruition; these tasks respond to the

characteristic of need for achievement. Therefore,

people scoring more highly in need for achievement

should be more likely to exploit entrepreneurial

opportunities.

Risk taking

propensity:

individual’s

willingness to engage

in risky activities

Praag and

Cramer

(2001)

The research indicated that risk aversion is a serious

impediment to entrepreneurship. The research

supported the views of several authors concerning the

impact of risk to the start-up of business. (However, the

causality of the correlation between risk attitude and

41

entrepreneurship is not proven, since risk attitude is

measured after occupations have been chosen.)

Shane

(2003)

Shane proposed that people higher in risk-taking

propensity should be more likely to exploit

entrepreneurial opportunities because risk-bearing is a

fundamental part of entrepreneurship.

Segal et al.

(2005)

Individuals who are willing to accept the inherent risk

of entrepreneurial activities will have the intention to be

self-employed.

Yueh

(2009)

The research revealed that more risk-averse people

would prefer wage employment even if the rewards

were smaller and that entrepreneurs are more risk-

loving than non-entrepreneurs. (However, attitude

toward risk is measured considering the variable of

income.)

Independent: people

who prefer to engage

in independent action

rather than action

involving others

Evans and

Leighton

(1989)

People who believe their performance depends largely

on their own actions have a greater propensity to start

businesses.

Lecornu et

al. (1996)

The research discovered that motivating forces driving

the establishment and pursuit of financial objectives are

typically associated with the personal objectives and

characteristics of the owners of small businesses. The

research revealed that desire for independence is the

most commonly cited non-financial objective.

Brandstätter

(1997)

People who consider setting up a private business share

a similar characteristic: independence.

Shane

(2003)

People with the independence characteristic prefer an

entrepreneurial activity because it allows the

application of one’s own judgement.

Benzing et

al. (2009)

Personal freedom and independence were identified as

the third most important reason for business ownership

among entrepreneurs in Turkey.

Need for locus of Greenberger The research demonstrates that a high desire for control

42

control: want to be

one’s own boss,

control one’s own

environment

and Sexton

(1988)

is likely to motivate individuals to gain more control.

Therefore, individuals decide to enter entrepreneurship,

which provides the necessary access to control.

Kuratko et

al. (1997)

One of the explanations of why individuals pursue

entrepreneurship is that they seek employment

autonomy by owning a business.

Self-efficacy/

Confidence: one can

successfully execute

the behaviour

required to produce a

satisfactory outcome

Greenberger

and Sexton

(1988)

The research suggested that one of the factors leading

to the initiation of new ventures is that individuals must

perceive themselves to be the kind of people who

initiate new ventures.

Segal et al.

(2005)

Individuals who believe in their own competence have

the intention to be self-employed.

Yueh

(2009)

Self-belief that one has the requisite skills was the main

reason for entering into self-employment.

Townsend

et al. (2010)

Confidence in one’s ability to perform tasks relevant to

entrepreneurship is a robust predictor of start-up

behaviour.

Although it has been thought that entrepreneurial characteristics might reside within

individuals from birth, previous research has discovered that the surrounding context might

play a role in shaping entrepreneurial characteristics and motivation. Mueller and Thomas

(2001), for example, found that characteristics such as the locus of control and innovativeness

are not necessarily imprinted at birth or an early age and might be acquired at a later time due

to experiences in the work place, from education, from exposure to role models and parents,

and society (culture). Yueh (2009) revealed that having a mother who was not a manual

worker was positively associated with entrepreneurship and parents had an impact on the

hunger for success and the pursuit of self-employment. Zhuplev et al. (1998) believed that

entrepreneurs are motivated by different motivations because they are living in different

environments. Praag and Cramer (2001) stated that characteristics might be able to change

according to change in the environmental context. These research results imply that

entrepreneurial motivations might originally come from the influences of surrounding

contexts.

43

Previous research claims that characteristics motivate individuals to generate entrepreneurial

activities, for example, McClelland (1965) stated that the characteristics found in

entrepreneurs are the factors influencing the decision to enter entrepreneurship. Similarly

Brandstätter (1997) believed that personality differences were the cause rather than the

effects of entrepreneurship. Shane (2003) indicated that personal characteristics influence the

likelihood that individuals will exploit entrepreneurial opportunities. Therefore, entrepreneurs

with characteristics that other people do not have will make a decision to exploit the same

opportunities that other people will not choose to exploit. Shane et al. (2003) support this by

saying that personality influenced individuals respond differently to the discovery of

opportunities. People with higher self-efficacy, for example, will be more likely to seek

financing to exploit opportunities than people with lower self-efficacy because they have to

expose their ideas to others; therefore, they have to be more confident. Segal et al. (2005)

conducted research showing how entrepreneurial characteristics can be linked to the action of

entrepreneurship and therefore generated a greater understanding of how these characteristics

can stimulate the initiation of new businesses. Deakins and Freel (2009) stated that

entrepreneurial characteristics are assumed to be the motives that drive individuals to enter

entrepreneurship.

The results from the previous research also show explicitly that entrepreneurial activities suit

individuals who possess entrepreneurial characteristics. Knight (1942), for example, stated

that entrepreneurship was associated with uncertain situations and therefore entrepreneurial

activities were connected with risk-taking. McClelland (1965) believed that an individual in

an entrepreneurial position would attain more achievement satisfaction. Kuratko et al. (1997)

found that individuals believed that entrepreneurship could lead to self-accomplishment.

Shane (2003) stated that tasks in entrepreneurship corresponded to the need for achievement.

Therefore, the evidence is convincing that individuals with entrepreneurial characteristics

would choose to enter entrepreneurship.

Research from the psychological perspective has generated a great deal of knowledge about

entrepreneurial motivation. However, some arguments can also be derived from previous

literature. First, it has been argued that the research on entrepreneurial characteristics does

not provide a clear linkage between entrepreneurial characteristics and the process of

entrepreneurship. Johnson (1990) revealed that there is no definitive link between the need

for achievement and entrepreneurship. Shaver and Scott (1991) shared the same idea. Their

work focused on scepticism about research regarding entrepreneurial characteristics that were

44

claimed to influence the initiation of new businesses. They stated that the need for

achievement did not show a definitive link with the setting up of a new venture.

Both Johnson (1990) and Shaver and Scott (1991) suggested that in order to find a definitive

link between entrepreneurial characteristics and the start-up of new businesses, an

investigation of the process of entrepreneurship was required. To respond to the debate, the

study of entrepreneurial characteristics as entrepreneurial motivation developed in terms of

investigating the process that creates the link between characteristics and entrepreneurial

behaviours, can be seen in the work of Segal et al. (2005). Segal et al. (2005) responded to

the suggestion of Johnson (1990) and Shaver and Scott (1991) by conducting research to

examine the key components of motivation that contributed to the decision to become self-

employed. To prove that the characteristics found in the research were able to lead to the

initiation of entrepreneurship, they linked the characteristics with the theory of intention to

act (Ajzen, 1991), explaining that entrepreneurial characteristics would affect an individual’s

intentions and direct him to an entrepreneurial act. However, this finding was disputed by

Degeorge and Fayolle (2011), who found that individual intention was not sufficient to

explain the trigger for the entrepreneurial process. Therefore, it could not be concluded that

entrepreneurial characteristics stimulate the start-up of new businesses.

The second argument which was stated in the work of Shaver and Scott (1991) was that the

findings about entrepreneurial characteristics in previous research were unreliable because

the majority of the studies did not apply appropriate methodology. The authors provide

examples of research methodological problems, citing studies such as that of Brockhaus

(1980) who investigated risk-taking propensity in entrepreneurs. Brockhaus (1980) used the

Kogan-Wallach choice dilemmas questionnaire to measure the risk characteristics of

entrepreneurs and compared the result with managers. Shaver and Scott (1991) argued that

the entrepreneurial characteristic was investigated without taking account of specific

circumstances such as the business environment. Moreover, the tool used to investigate the

characteristic, was not designed to measure the level of risk-taking propensity of

entrepreneurs.

Third, Johnson (1990) raised a question as to whether the definition of entrepreneurial

characteristics can be termed differently by different researchers. The author stated that it was

essential to use terminology more precisely when describing specific motives of

psychological characteristics to avoid confusion in the results. Therefore, each

45

entrepreneurial characteristic needs to be carefully explained, taking into account other

circumstances that might influence the results. This is especially important when stating that

the influences of culture might partly contribute to entrepreneurial behaviour (Morrison,

2000). Morrison (2001) suggested that the study of the cultural and social contexts in which

entrepreneurs live would generate a better understanding of these characteristics, traits and

entrepreneurial behaviours. Ogbor (2000) warns that while researchers might be seduced into

representing entrepreneurs in terms of their ideological constructs such as entrepreneurial

characteristics, without examining assumptions and knowledge, the truth of the reality of

entrepreneurs will never be revealed. Hence, the answer to entrepreneurial motivation might

not be explained clearly by only identifying entrepreneurial characteristics and traits.

Finally, researchers believe that entrepreneurial motivations discovered in the psychological

perspective are not the only group of factors involved in the decision to enter

entrepreneurship. Entrepreneurial motivations come from the integration of personality and

the environmental context. Greenberger and Sexton (1988), for example, proposed that the

decision to become entrepreneurs was not only involved with personality but also depended

on the salience of events and social support. Shaver and Scott (1991) mentioned that the

process towards entrepreneurship would incorporate both personal and situational variables.

Herron and Sapienza (1992) stated that personal values and context affected aspiration to

entrepreneurship. Although Shane et al. (2003) state that entrepreneurial motivation comes

from personal attributes, the authors believe that environmental conditions also matter. They

explain that environmental conditions interact with the attributes of individuals to generate

the entrepreneurial start-up process. Parks and Guay (2009) indicate that, with the same

personality, individuals might act differently when faced with different situations. Cha and

Bae (2010), who investigated the process leading to entrepreneurship, suggest that although

the research focuses on psychological perspectives, negative contexts such as life-work

imbalance and persistence through disappointment should also be investigated. They state

that evaluation of the journey towards entrepreneurship may differ according to the cause of

the entrepreneurial intent and/or the effects of surrounding factors during the process.

Naffziger et al. (1994) proposed that the interaction of personal characteristics with other

important perceptions of situational factors also needs to be better understood.

As discussed above, entrepreneurial characteristics might not be the only factors that

influence entrepreneurial activities. Therefore, the discovery of entrepreneurial motivation

from the sociological perspective is reviewed in the next section in order to generate more

46

understanding about the other factors that might influence the motivation of individuals to

become entrepreneurs.

2.5. SOCIOLOGICAL PERSPECTIVE

Besides economics and psychology, sociology has also affected the amount of research into

entrepreneurship (Hamilton and Harper, 1994). Researchers believe that social contexts

influence individuals’ choice to become entrepreneurs. Stanworth et al. (1989), for example,

stated that social factors could be used to explain the origins and motivations of the existence

of enterprise. Morrison (2001) found that entrepreneurial acts result from social systems that

surround entrepreneurs, such as family, role models and social context. Jayawarna et al.

(2011) believe that entrepreneurial motivations are related to the surrounding environment.

Table 2.5 presents entrepreneurial motivation viewed from a sociological perspective,

identifying relevant studies for each motivation.

Table 2.5: Entrepreneurial Motivation Viewed from a Sociological Perspective

Motivation Author(s)

Family Naffziger et al. (1994), Benzing and Chu (2009)

Context in workplace Stanworth et al. (1989), Yueh (2009)

People in society Greenberger and Sexton (1988)

Individual status Hamilton and Harper (1994), Goss (2005), Volery et al. (1997)

Social network Yueh (2009)

Role model Stanworth et al. (1989), Yueh (2009), Bosma et al. (2011)

Pursuit of lifestyle Lecornu et al. (1996)

Cultural context Morrison (2000)

47

Education Hsu et al. (2007)

Religion Benzing and Chu (2009)

Family is found to be one of the factors that inspire the desire to enter entrepreneurship.

Naffziger et al. (1994) stated personal environment such as family status and growing up in

an entrepreneurial family can lead to a decision to act entrepreneurially. Nevertheless, it has

to be noted that the explanation provided by the author rather emphasises family stereotypes,

without taking account of the differences between different countries or cultural contexts, for

example, it was stated that individuals who had had one parent or had a college degree would

be more likely to be self-employed. The authors also indicated that family was one of the

entrepreneurial motivations and there were also other important motivation factors including

business environment and an individual’s ability to identify an opportunity to build a

business. It was explained that entrepreneurial motivations came from the integration of these

factors. However, the authors did not discuss the relationship between the factors, e.g. how

family might connect to personal characteristics or how family might contribute to the

identification of opportunity or attitudes toward economic conditions. Benzing and Chu

(2009), conducting research in Ghana and Kenya, revealed that in Ghana one of the highly

rated factors that encouraged individuals to become entrepreneurs is ‘to build a business to

pass on’. Ghana is identified as a country with few savings opportunities and entrepreneurs

are more likely to see the bulk of their estate inherited by their surviving spouse and/or

children. In Kenya, where inheriting an estate is difficult, ‘being close to my family’ is

identified as one of the important motivations that inspires individuals to become

entrepreneurs. The authors state that there is no specific reason for this motivation; however,

Africa, in general, has strong tribal roots and people remain well connected to their families.

From the sociological perspective, the family factor contributes to the desire to enter

entrepreneurship.

The workplace context is also indicated to be a factor that drives individuals to enter

entrepreneurship. The feeling of being misplaced and knowing that many career opportunities

are unattractive or closed can lead to the process of entry into entrepreneurship (Stanworth et

al., 1989). Yueh (2009) states that in China, Communist Party membership is found to be a

factor that inhibits entrepreneurship. The researcher found that party members were more

likely to be allocated desirable jobs and less likely to be laid off, thus individuals who were

48

not members were more likely to enter entrepreneurship. Indeed, the research discovered that

only 6% of entrepreneurs were party members.

Individuals can also be pushed to enter entrepreneurship. Hamilton and Harper (1994), for

example, believed that the withdrawal of status respect and relative social blockage, such as

loss of social recognition and feelings of discrimination, could push individuals to engage in

entrepreneurship. This might be because the individuals saw that success in business was the

way forward for them. Volery et al. (1997) found that the achievement of social status is one

of the factors that trigger the start-up of business. Goss (2005) who studied the work of

Schumpeter on entrepreneurship stated that individuals who decided to become entrepreneurs

attempted to establish a position where power ensured the deference of others and also

protected them from feelings of shame that might come from inferior status.

People in society are also found to be supporters of entrepreneurship. Greenberger and

Sexton (1988) believed that the potential entrepreneur needed social support. They stated that

such encouragement can help entrepreneurs believe in their projects and abilities, which may,

in turn, lead to the initiation of new ventures. Previous research also found that having social

networks is identified as entrepreneurial motivation. Yueh (2009) found that a social network

is a significant factor associated with entrepreneurship. The research reveals that an increase

in the size of a social network positively affects the probability of becoming an entrepreneur.

The cultural context in which people are rooted is highlighted as one of the key factors that

influence the shaping and development of entrepreneurs. According to Morrison (2000),

cultural context was found to be associated with a formal education system, family

background, regional history and characteristics, religion and role models. The author

provides examples of cultural impact; for instance, it was found that the amount of personal

funds that may be available for investment in business is affected differently between cultures

that practice saving for the future and cultures which focus on living and spending to enjoy

the moment. Previous research also found that education can lead to the start of the

entrepreneurial process e.g., Hsu et al. (2007) investigated the influences of university

education on the decision to enter entrepreneurship. From an investigation of university

alumni and founder information, the researchers found that there is a decline in age and time-

lag of first-time entrepreneurs and it is believed that this is due to the impact of universities. It

is assumed that university and entrepreneurship may be linked by academia’s impact on

transferring entrepreneurial know-how via training and facilitating new-venture team

49

formation and linkages to older alumni being possible through entrepreneurial networks.

There is also evidence of religion being an influence on the decision to enter

entrepreneurship. Benzing and Chu (2009) found that religion can impact the decision to

become entrepreneurs, as they discovered that Nigerian businesspersons were motivated by

God or divine inspiration to start businesses.

Previous research from a sociological perspective explicitly states that culture influences

entrepreneurial motivation. Benzing and Chu (2009), for example, discovered that family is

an entrepreneurial motivation and they believe that the entrepreneurial context might play a

part in generating an explanation. It is also possible to assume that the need for economic

incentives might actually be shaped by the cultural context in which the entrepreneurs live,

thus different contexts could lead to different explanations. While Morrison (2000) strongly

believes that cultural and social factors are essential in triggering entrepreneurship, it is

possible to assume that different cultural and social factors may lead to differences in the

explanation of motivation factors. Although previous research from the sociological

perspective has discovered various entrepreneurial motivation factors, it is difficult to

conclude that entrepreneurs in different contexts are motivated by similar entrepreneurial

motivations. Therefore, a similar argument which is raised from this perspective, as well as

economic and psychological perspectives, concerns the hidden meaning of motivation

factors. Even from the sociological perspective, it is believed that each motivation factor

requires further explanation. This is because motivation factors, which treat social factors in

an over simplistic way without considering differences of context, might lead to ignoring the

need for closer investigation. While endeavours and successes of role models, for example,

are believed to be the motivation factors of Dutch entrepreneurs, as discovered by Bosma et

al. (2011), Yueh (2009) found that, in China, most entrepreneurs in urban areas simply wish

to follow the crowd. Not only does this indicate that different contexts can generate different

answers, it is implicit that lacking further clarification, role models and following the crowd

could be seen as the same. This might lead to misunderstanding of entrepreneurial motivation

and the failure to encourage the spirit of entrepreneurship. Thus, an interpretation of what

constitutes these factors by considering contexts where entrepreneurs exist is necessary.

Ogbor (2000 p. 605) warns that “the critical search for scientific truth is constrained to be

tolerant to ambiguity, diversity and pluralism, and its outcome will necessarily be knowledge

that is relative and fallible rather than absolute truth”. These social factors involved in

entrepreneurial motivation are constructed through evidence from different contexts and it is

50

suggested that motivation factors possibly influenced by context, actually act as a better

explanation of what really motivates entrepreneurial acts. While research in the economic and

psychological perspectives identifies motivational factors generated from those areas, it is

also possible that these factors are influenced by those found in the sociological perspective.

This possibility encourages investigation to afford a better understanding of entrepreneurial

motivation in order to identify the relationship between the various inherent factors.

Although the generic literature on entrepreneurship had extensively researched

entrepreneurial motivation, those studies have two limitations: i) the influence of context on

entrepreneurial activity and motivation is somehow overlooked; ii) studies conducted in the

tourism and hospitality industry demonstrate that the generic entrepreneurship literature

cannot explain all unique aspects of entrepreneurial activity. This is supported by Lynch

(1998) who agreed that hospitality firms were different from other firms in other industries.

The researcher suggested that research on hospitality firms needs specific contextual

understanding. It was found that previous research in the tourism and hospitality industry

provided surprising results on entrepreneurial motivation. Thus the next section reveals and

discusses the previous research on entrepreneurial motivation in the tourism and hospitality

industry.

2.6. ENTREPRENEURIAL MOTIVATION IN THE TOURISM AND

HOSPITALITY INDUSTRY

Evidence found in previous research indicates that entrepreneurial motivations in the tourism

and hospitality industry spring from the entrepreneurial lifestyle. In addition, lifestyle

entrepreneurs also appeared in other industries such as apparel retail and interior firms

(Marcketti et al., 2006) including artisans (Eikhof and Haunschild, 2006). In contrast to the

economic perspective in which it is believed that entrepreneurs, in general, are motivated by

economic factors such as economic incentives, it has been found that important motivations

which influence the decision to establish most entrepreneur businesses in the tourism and

hospitality industry are concerned with non-economic motives. Ateljevic and Doorn (2000)

51

identified that non-economic lifestyle motives are significant stimuli for tourism

entrepreneurs. The authors, who investigated entrepreneurs in New Zealand, explained that

tourism entrepreneurs were motivated by seeking a lifestyle which incorporated various

concepts, such as landscape, community, preferred activities and professional skills. Research

on the urban small tourism business sector conducted by Morrison and Teixeira (2004) also

found that the motivation to enter business of entrepreneurs in Scotland came from a

prioritisation of lifestyle objectives. The authors identified that business entry was

dominantly associated with family lifestyle, for example, the ability to live with the children

or husband. The research indicates that entrepreneurial motivation is connected with family

lifecycle, rejection of the corporate way of life and the general pursuit of a work/life balance.

The motivation drove the majority of small business owners to initiate and configure the

business as appropriate to satisfy personal and family goals. Lashley and Rowson (2010)

discovered that entrepreneurs in Blackpool are not driven by the need to maximise profits and

build a business empire. The majority of them are lifestyle entrepreneurs whose key motives

are more associated with improving their quality of life. More explanation is provided

because of the method of in-depth interview, as the researchers indicated that the significant

majority of the entrepreneurs were motivated by lifestyle issues such as a dream career,

wanting to work with a partner, and having a home with an income. Middleton (2001) found

that, in the UK, many semi-retired people operated small accommodation businesses in order

to support an alternative lifestyle rather than make a profit. More evidence on lifestyle, non-

economic motivations appear in the work of Szivas (2001) who conducted research in the UK

and found that entry into tourism entrepreneurship is connected to way-of-life motives. It was

explained that the entrepreneurs believed that a business in the tourism industry would enable

them to have an improved standard of living. However, it has to be noted that the researcher

commented on these entrepreneurs as “amateurs in the pejorative sense” (p. 171) and

proposed that further investigation into entrepreneurial motivation and its impact was needed.

No further explanation about the factors was given which might be due to the data having

been collected through self-completed questionnaires that do not allow in-depth investigation

of the factors. Although the previous research was predominantly conducted in developed

country contexts, the above evidence indicates that entrepreneurs in the tourism and

hospitality industry are motivated by non-economic lifestyle motivation factors.

The industrial context stated in previous research is seen to be one of the primary

entrepreneurial motivations of tourism and hospitality entrepreneurs. Szivas (2001)

52

discovered that entrepreneurs enter the tourism industry because they are attracted by the

industrial context. It was explained that the entrepreneurs believed that the tourism industry

was a suitable and pleasant industry to work in. This is similar to the research conducted by

Morrison and Teixeira (2004) who believe that entrepreneurs are attracted by the industrial

context since the sector has low professional, skill and financial barriers to entry and already

accommodates a family lifestyle/family business model. It was stated that the sector is

suitable for individuals who seek a lifestyle change. Lashley and Rowson (2010) discovered

that entrepreneurs who operated hotel businesses entered the business because it was an easy-

entry business which allowed a reasonable income-effort bargain, while working with a

partner. Nevertheless, it was argued that the tourism and hospitality business also faces

business barriers, such as human resource problems (Morrison and Teixeira, 2004).

Another motivation assumed to be related to lifestyle motivation, and was actually different

from the industry context results of Szivas (2001) and Morrison and Teixeira (2004), is the

non-economic motivation of destination context. Getz and Carlsen (2000), who conducted

research on family and owner-operated businesses in the rural tourism and hospitality sectors,

found that a strong motivation of entrepreneurs was to live and work in the countryside. It

was explained that, with the destination context where entrepreneurs can enjoy a good

climate, attractive landscapes and a lifestyle associated with fine dining and wine, they are

predominantly motivated by living in the right environment and enjoying a good lifestyle.

This result is actually similar to Ateljevic and Doorn’s research (2000) as stated above that

some of the lifestyle entrepreneurs were motivated by the landscape. Lashley and Rowson

(2010) discovered that although the entrepreneurs had a general desire to survive, they were

more concerned with non-economic, location issues. The motivations found by these authors

include factors such as favourite place and memories of a good holiday. Ioannides and

Petersen (2003) investigated entrepreneurial motivation of tourism business owners in

Bornholm, Copenhagen and found that the main motivation for starting a tourist business was

more a lifestyle choice than an economic motivation. According to the research results, the

entrepreneurs desired to live in the area and almost half of the entrepreneurs were immigrants

to the area. The researchers describe that Bornholm is perceived as a hub of arts and crafts,

particular glass blowing and ceramics and its low cost living attracts many Danish and

foreign artists who sell their wares to tourists during the summer. Nevertheless, the authors

also mentioned that the entrepreneurs were drawn into the tourism industry because they had

limited options for other forms of employment and the sector has low entry barriers.

53

There is evidence that entrepreneurs in the industry are motivated by sociological factors.

Morrison (2001) believed that social misfits and being members of a minority were

considered important motives for starting a business. Economic conditions and

entrepreneurial characteristics were seen as the only factors supporting the decision to start a

new business. It was stated that entrepreneurial characteristics are shaped by cultural

conditions, while social networks, social trends and social mobility actually attract the

entrepreneurs to form a business. However, the results were from the investigation of the

biography of two hospitality entrepreneurs who lived almost a hundred years ago. The results

also contradict Szivas research (2001) who found that entrepreneurial motivation came from

a deliberate exchange rather than adaptation to forces or circumstances.

As evidence of non-economic entrepreneurial motivations dominates the purpose of profit

maximisation, researchers in the tourism and hospitality field conclude that the results from

an economic perspective might not be applicable to the industry. Williams et al. (1989), who

conducted research in a tourism region in Cornwall, England, discovered that the routes to

tourism entrepreneurship revealed an important dimension of non-economic decision making.

The authors raised a possible question of whether being self-employed has an economic

motive. It was concluded that previous discoveries on the process of business formation and

entrepreneurial motivation might not be applicable to these entrepreneurs and

entrepreneurship. The idea was supported by Dewhurst and Horobin (1998), who believed

that the economic perspective in entrepreneurship might be poorly developed among small

tourism firms. Nevertheless, some researchers believe that some of the entrepreneurs in the

tourism and hospitality industry are motivated by a mixture of motives. Middleton (2001), for

example, discovered that small businesses in European tourism were motivated by a mix of

personal, quality of life and community goals, as well as the normal business/commercial

rationale. Getz and Petersen (2005), who conducted research on family business owners in

the tourism and hospitality industry in Canada and Denmark, discovered that although

entrepreneurs were dominantly motivated by lifestyle factors, there were others who were

more motivated by profit. This is similar to the results of Getz and Carlsen (2000); although

the authors found that strong motives of the entrepreneurs were concerned with lifestyle

factors, they also discovered that some of the entrepreneurs were still motivated by gaining

profit. Some destination contexts within the tourism and hospitality industry, for example, are

suitable for making a profit, since they have higher levels of publicity and demand and less

seasonality.

54

According to the previous research, it is clear that entrepreneurs and their motivations are

complex. Attempting to explain entrepreneurs and their motivations by identifying only one

specific factor or idea would not be enough to fully comprehend the issues. To emphasise,

previous research looked at entrepreneurs and their motivations from only specific

perspectives, i.e. economic, psychological and sociological, and categorised them into profit

or non-profit motivated entrepreneurs. It can be argued that such classification is too

simplistic and cannot provide sufficient understanding of entrepreneurial motivation. This

idea is supported by Simon (1956) who discovered that human behaviour in making decisions

was complex. The researcher explained that human choice was a complex process because it

followed a path that could permit satisfaction at some specified level of various needs rather

than being based on the ideal of maximizing profit as in the economic perspective. Therefore

constructing a simple tool to understand how humans make decisions, although possible, was

problematic. He believed that it would not explain human decision making and would not

lead to understanding of human choice. This indicates that entrepreneurs are driven by a

mixture of motivations thus must be explained by a mixture of perspectives.

It is also argued that entrepreneurs who operate different types of businesses would be driven

by different motivations. Getz and Carlsen (2000) discovered that, although lifestyle motives

were dominant factors, there were entrepreneurs whose answers emphasised the profit factor

and they were more likely to be running hotels and motels. The authors suggested that

entrepreneurial motivation might concern investment, in that the more one invests, the more

normal profit goals would be dominant. Entrepreneurial motivation is also investigated in

different types of businesses, such as accommodation, restaurants, bed-and-breakfast and arts

and crafts. Getz and Petersen (2005) found that while bed-and-breakfast and arts and crafts

were associated with lifestyle and autonomous motivation, accommodation establishments

and restaurants were motivated by profit and growth orientation. Lashley and Rowson (2010)

discovered that entrepreneurs who operated guest houses and small hotels have more lifestyle

ambitions than classical entrepreneurial motives. However, they believed that while there

might be people engaged in the tourism business for ‘a bit of pin money’, there might be

others who dream of making much more money and owning a chain of hotels. The

researchers urged for more research into the needs of different entrepreneurs that could link

different messages to different types of entrepreneurs. Thomas et al. (2011) have suggested

that, despite some previous research exploring entrepreneurial motivation in the hospitality

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context, there are still substantial gaps in the area, which through the investigation of the

broader context will enable the extension of generic knowledge.

In addition, arguments can be drawn from previous research on other industries. Research

based on a large group of entrepreneurs, with no categorisation of groups and types of

entrepreneurs, identifies economic factors as entrepreneurial motivation (Gilad and Levine,

1986; Evans and Leighton, 1989). On the other hand, research based on specific groups of

entrepreneurs, such as small businesses, and specific industry sectors, such as service and

retail, generates different entrepreneurial motivation results and non-economic motives are

discovered (Kuratko et al., 1997). Bruton et al. (2008) strongly believed that entrepreneurs

act differently depending on their institutional setting. Therefore, the investigation of

different types and groups of entrepreneurs is recommended. Moreover, it is also suggested

that research cannot focus only on the features of the business but must also consider contexts

such as culture (Morrison, 2000), economic conditions (Gilad and Levine, 1986) and social

contexts (Stanworth et al., 1989), all of which might influence entrepreneurial motivation. It

is also possible that different contexts can lead to different entrepreneurial motivations.

2.7. CHAPTER CONCLUSION

The chapter reveals the entrepreneurial motivations discovered from the economic,

psychological and sociological perspectives and in the tourism and hospitality industry. From

the economic perspective, it has been shown that entrepreneurs can be drawn into

entrepreneurship by profit and the economic situation, such as the level of unemployment and

economic support from government policy. However, it is argued that entrepreneurs can be

motivated by factors other than economic conditions. From the psychological perspective, it

is believed that entrepreneurs are motivated by five entrepreneurial characteristics frequently

mentioned in previous literature which are the need for achievement, risk-taking propensity,

independence, need for locus of control and self-efficacy. Although previous research has

tried to explain the connection between the characteristics and entrepreneurship, it is argued

that the link is weak. Moreover, it is thought that entrepreneurial characteristics might be

56

defined differently in different contexts and other factors such as social context might also

partly motivate entrepreneurs. The sociological perspective reveals that entrepreneurs can be

drawn into entrepreneurship by social context, such as family, friends and cultural context. It

is also argued that different contexts might lead to different motivations. In the tourism and

hospitality industry, entrepreneurs are dominantly motivated by non-economic, lifestyle

motivations. However, it is believed that entrepreneurs operating different types of businesses

might have different entrepreneurial motivation.

In conclusion, previous literature has introduced a variety of entrepreneurial motivations.

Since it has been revealed that entrepreneurial motivations vary between different

perspectives and different contexts, it cannot be determined that entrepreneurs in different

contexts would be motivated by similar entrepreneurial motivations. Moreover, according to

the previous literature, it is obvious that entrepreneurial motivation needs to be explained

further. To emphasise, the discovery of motivation factors alone might not generate deep

understanding of entrepreneurs, unless the factors are carefully explained taking into account

the association of entrepreneurial context.

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CHAPTER THREE: BUSINESS GROWTH AND

BOUTIQUE HOTEL

3.1. INTRODUCTION

According to previous research, entrepreneurial motivation not only affects the creation of

business but also influences the way business is organised. Kuratko et al. (1997) stated that

simply looking at the start-up of ventures is incomplete in explaining entrepreneurship,

because the sustainability of the business must also be explored. Therefore, this chapter

reviews the previous research on small business growth, beginning with the approaches in

small business growth. Then the chapter reveals growth factors in the business environment,

small business characteristics and entrepreneurs. It also discusses entrepreneurial motivation

and business growth. Finally, it focuses on previous research in the hospitality and tourism

industry. The growth of entrepreneurship in this sector is revealed. Since this research also

aims at investigating boutique hotels, the chapter provides a discussion on the definition and

characteristics of boutique hotels found in previous research.

3.2. APPROACHES IN SMALL BUSINESS GROWTH

Dobbs and Hamilton (2007) have reviewed the previous research of small business growth

and discovered that the approach can be divided into six broad groups: stochastic, descriptive,

evolutionary, resources-based, learning and deterministic. Studies conducted using each

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approach introduce different perspectives of growth in small businesses thus the following

paragraphs will explain each approach.

In the stochastic approach, it is believed that various independent factors affect growth in

small businesses and each factor is considered equally important in supporting growth

(Sutton, 1997). However, Reichstein and Dahl (2004) discovered that firm growth was

connected to industry and geography e.g. they found that the effect of firm size on growth

differed depending on the type of industry. According to Hart (2000), it was also evident that

the initial size of firm is associated with the terminal size e.g. the smallest young firms grew

more quickly than older firms. The author concluded that firm growth cannot be completely

random, since it was found to be supported by correlated factors. However, in this research, it

appears that the relationship between factors encouraging growth is very low. Another

example is from the work of Edelman et al. (2005). They stated that the explanation of small

business growth depends on the resources and strategies of the firms. The researchers found

that human capital and organisational capital were connected with quality/customer services

and innovation strategies and firm growth was connected to the choices of resource

deployment.

Another approach to growth in small businesses is the descriptive approach. It is based on

describing a series of stages of business growth (Phelps et al., 2007). The approach can be

depicted from Churchill and Lewis’s research (1983). They believed that small businesses

were different internally in terms of, for instance, their organisation structure, independence

of action and management style. In focusing on growth in small businesses, they used internal

factors to build five stages of small business growth. The growth stages were created from

common growth problems and similar stages of development among small businesses.

However, Phelps et al. (2007) argued that although the stages of organisation growth were

simplified by reducing them from a complex to a deterministic pattern, it was still unclear in

terms of the number of stages and of the factors that establish a stage. They pointed out that

the number and nature of growth stages actually varied extensively and previous research on

growth stage was presented with limited empirical evidence. The authors concluded that

since small businesses are rather heterogeneous, a generalizable model of stages was found to

be difficult to apply. In the case of Churchill and Lewis’s research (1983), it can be seen that

although the researchers recognised the internal differences of small firms, the research

measured growth by using only the growth of sales. Considering other types of growth, such

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as employment rate, financial growth and total assets, might lead to a different pattern of

growth.

Hart (2000) stated that an evolutionary approach refers to the study of a firm’s adaptation

when environment changes. In the model, it is believed that each firm has its own evolution.

Consequently, efficient firms grow and survive and inefficient firms decline and fail

(Jovanovic, 1982). In 1999, Vinnell and Hamilton (1999) conducted research to develop the

understanding of why small firms pursued growth. Their criticism of cross-sectional designs

and quantitative methods in previous research persuaded them to adopt a historical

perspective approach to small firm growth. Attempting to explain the process of growth (both

during and after the growth), the research drew some interesting growth factors, such as

owner/CEO self-image, product innovation, changes in market scope, improved methods of

sales and distribution. However, they found that these discovered factors cannot be assured.

They added that this was because small firms were complex and the growth process was an

idiosyncratic and unstable process. Consequently, it might not be possible for small

businesses to have the same universal stages of growth. This research is found to go against

the descriptive approach. Unfortunately, though the research does draw an interesting point

related to small business growth, it was only based on the study of a small manufacturing

firm.

Hart (1995) explained that the theory of a resource-based view could be seen as the

relationship between firm resources and capabilities and competitive advantage. The author

pointed out that in a resource-based view, firms achieved sustained competitive advantage

only if they had capabilities, which were supported by resources that were not easy to imitate.

Therefore, it can be seen that resources were used to create a firm’s capabilities that led to the

firm’s ability to sustain competition. A firm’s resources include physical and financial assets

as well as employees’ skills and organisational processes. Penrose (1995) pointed out the

importance of resources in small businesses. She proposed that while large firms might be

more controlled by the external environment than internal resources, small firms were

restricted by their resources that were extremely limited. Research found that growth of small

businesses was related to firms’ resources. Orser et al. (2000), for example, showed that in

small businesses, growth depended on managerial resources such as having the financial

expertise to produce financial information. They found that managerial resources were

organised by forming a business plan. The researchers revealed that the business plan was

related to growth of a firm that showed a high correlation with firm size and propensity for

60

revenue increase. However, they found that the majority of businesses did not have a business

plan. Penrose (1995) stated that managerial competence is an important factor for firm

growth. However, she added that though entrepreneurs have managerial competence that can

drive business growth, business growth depends seriously on the spirit of entrepreneurs in

pursuit of profit. If entrepreneurs do not want to search for more profit, it is likely that firms

will not grow very large. This is supported by Barringer and Jones’s work (2004). They

found that rapid growth firms were faced with managerial problems, for example, newly

promoted managers in rapid-growing firms have difficulty in adjusting regarding organisation

socialization. Nevertheless, firms that were committed to grow appeared to come up with

several solutions to handle problems. Regarding resource-based theory on growth, another

example is from Edelman et al. (2005). The researchers found that company resources

combined with its strategy could be used to explain increasing sales. Unfortunately with the

quantitative method, the research is able to identify only the relationship of strategy and

resources with growth but further explanations of why and how do not appear. Deakins and

Freel (1998) stated that growth in small firms is complex and quantitative research will

abstract from this complexity of the growth process. Moreover, resource based view is more

applicable to large firm.

The next approach is the learning perspective. Macpherson (2005) argued that to find an

explanation on how resources were used to generate growth, the learning perspective should

be applied. The author discovered that although firm growth was linked to a company’s

resources, it actually depended on the manager’s existing experience. Firms learn from their

experience in solving problems and organisation growth results from those experiences. The

author noted that each firm had its own idiosyncratic solution. How they grow and why they

grow would differ. However, since the research was conducted on only three companies, the

author stressed that it was not possible to generalise from the results. Deakins and Freel

(1998) also suggested that the ability of an entrepreneur to learn was essential to the growth

process. In their research, it was found that the decision to grow was influenced by

entrepreneurial experiences. The researchers suggested that entrepreneurial learning is

experiential. However, it is noted that applying learning theories to entrepreneurship can be

challenging. While the business characteristics appear to be very diverse, the growth process

is also non-linear and discontinuous.

The final approach is called the deterministic approach. It is seen to be contrary to the

concept of the stochastic approach. Becchetti and Trovato (2002) explained that while growth

61

factors were seen to be independent of size and age in the stochastic approach, there was

empirical evidence that refutes this assumption. Moreover, it is believed that growth depends

on other factors apart from size and age. The authors found that the growth of small

businesses not only depends on size and age but is also related to the availability of external

finance and accessibility to foreign markets. Focusing on small independent firms, Davidsson

et al. (2002) found that business age, initial size, ownership form, industrial sector and legal

form were essential factors that generated growth. It can be assumed from this that growth

depends on several factors and the deterministic approach aims to discover these factors.

However, it is noted that growth factors identified by a deterministic approach can only

partially explain small business growth rate (Dobbs and Hamilton, 2007), since there are still

some considerable variations left unexplained (Davidsson et al., 2002). They stated that

different contexts might lead to different factors of growth. It has to also been suggested that

since firms are seen as idiosyncratic, there is no individual factor that has universal influence

(Davidsson and Klofsten, 2003).

After Dobbs and Hamilton (2007) conducted research reviewing empirical contributions to

small business growth and explaining the controversy mainly in the different approaches to

growth and the various determinants of small business growth, it was argued that these

studies showed the lack of a unifying theory and with these different approaches, the

knowledge on growth in small business will never develop. Despite previous research having

a similar aim which is to understand growth in small business, the literature continued to

feature a wide range of growth aspects. e.g., Vinnell and Hamilton (1999) chose to study

phases of growth, whereas Perren (1999) conducted research to identify factors that influence

growth. Each approach has its advantages and weaknesses in describing growth in small

business but there is no conclusion on the best approach to growth. Hamilton and Lawrence

(2001) agreed that the studies of small firm growth were still rare and it was poorly

understood. With the hope that the apparently rather fragmented knowledge on small

business growth can be developed, Dobbs and Hamilton (2007) called for a new theoretical

perspective.

Other arguments derived from the overview of previous research include that research using

various approaches measures growth using different measurements. While selected

measurements might be seen as a tool to generate a better portrait of small business growth in

a context, they are varied and measured in different contexts. Aiming to accumulate

knowledge on growth, unfortunately Wiklund and Shepherd (2003) found that there was no

62

harmonisation of existing measurements of growth. The authors discovered that there was

robustness in the different measurements such as asset growth, equity growth, sale growth,

and employment growth used in studies on small business growth. It was found that different

research used different growth measurements. Wiklund and Shepherd (2003), for example,

used sales and employment to measure growth in terms of size, while Moreno and Casillas

(2008) measured firm growth by using both a subjective measure, which was the perception

of a firm’s directors and an objective measure, which is the percentage growth in sales.

Wiklund and Shepherd (2003) indicated that in order to overcome shortcomings in broad

knowledge on growth, researchers must clarify a particular aspect of growth before they

empirically test it. Moreover, they said that growth contains various dimensions, thus a

growth theory might fit one domain but not others. They suggested that because some growth

theories cannot apply to some contexts, empirical evidence was able to suggest the relevance

of findings towards the specific context. It is also found that previous research portrays

different perspectives on growth issue e.g. growth is seen as the expansion of the number of

employees, it also can be seen as the growth of entrepreneurial experiences. It is studied by

using a large number of small firms in various sectors (Shepherd and Wiklund, 2009), or

focusing only on particular sectors, such as manufacturers with fast sales growth (Churchill

and Lewis, 1983).

Dobbs and Hamilton (2007) stated that while different approaches lead to different research

and results, the number of deterministic studies is large and growing. In order to gain

knowledge related to small business growth, this research decided to review previous

research on the factors that affect growth in small businesses. Therefore, the next section

discusses growth factors.

3.3. GROWTH FACTORS

According to Dobbs and Hamilton (2007), factors that encourage small business growth are

various. The authors discovered that there were over thirty independent variables identified as

factors that generate small business growth. They are drawn from both internal and external

63

dimensions. Those from internal dimensions include entrepreneurial characteristics and a

firm’s characteristics e.g. Orser et al. (2000) who conducted research in Canada found that

managerial readiness influenced small business growth. Those from external dimensions

involve environmental and industry factors. Morrison and Teixeira (2004) who conducted

research in UK found that government policy can generate growth in small businesses.

Moreover, these factors contain both quantitative and qualitative aspects e.g. firm size, which

is measured by the number of employees, is seen to be relevant to business growth

(Rutherford et al., 2001). Researchers also found that entrepreneurial qualities such as vision,

energy and opportunism, could lead to a firm’s growth (Morrison et al., 2003). The following

reviews some of factors that generate growth in small businesses found by previous

researchers.

3.3.1. BUSINESS ENVIRONMENT AND BUSINESS GROWTH

Wiklund and Shepherd (2003) believed that environmental dynamism played a role in

magnifying growth aspirations. In their research, the business environment, such as

competition, the growth of overall demand and changes in customer preferences, was

suggested as a factor that influenced a firm’s growth. Likewise, Moreno and Casillas (2008)

suggested that environment which affects a firm’s strategy, such as competitive dynamics,

technological development and consumption pattern, could have an effect on a firm’s growth.

However, both studies, Wiklund and Shepherd (2003) and Moreno and Casillas (2008), did

not focus on investigating environment as the main factor that generated growth. Wiklund

and Shepherd (2003) conducted research on manager’s growth aspiration as a growth factor

and Moreno and Casillas (2008) assumed that entrepreneurial orientation was related to

growth. Nevertheless, in their conclusions, the two studies agreed that environment plays a

role in encouraging the growth of firms. Though Moreno and Casillas (2008) stated that the

effect of environment on firm growth cannot be confirmed, they suggested that firm growth

was favoured in dynamic environments. In a contrast to this, Wiklund and Shepherd (2003)

found that growth is not significantly related to environmental dynamism.

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It was found that the business environment alone could not encourage growth. Perren (1999)

discovered that demand for products or services, which was encouraged by, for example, the

stage of economic development, product sector and market segmentation and a competitive

economic environment, had an influence on growth. However, the author argued that

although demand, which is an external factor, could persuade a business to grow, it was much

more determined by the owner-manager’s attributes, such as being an active risk taker and

having the desire to succeed. This was revealed from one of his sixteen case studies, which

were conducted on growth in micro-enterprises. Both Perren (1999) and Morrison et al.

(2003) agreed that opportunity environment could encourage small business growth.

However, it would also be under the control of owners. Economic conditions might be one of

several external environment factors that influence business growth. Morrison et al. (2003)

investigated small business growth and found that more than half of small businesses showed

moderate growth in line with local economic conditions. However, there was also a minority

of businesses growing faster compared to the industry sector norm. This can be explained by

Smallbone et al. (1995) and Barringer and Jones (2004). These researchers found that when

small businesses were faced with difficulties that dominated over opportunities and

competitive environments and discouraged their growth, some small businesses came up with

several remedies and persisted in growing.

3.3.2. SMALL BUSINESS CHARACTERISTICS AND BUSINESS GROWTH

Size of business is determined by different factors, for example, the number of founders

(Hamilton and Lawrence, 2001), or number of employees (Glancey, 1988). Nevertheless

research found that size has an effect on small business growth. Glancey (1988) conducted

research on small manufacturing firms in Scotland to investigate the determination to grow.

The researcher found that larger firms, determined by the number of employees, had higher

rates of growth of assets than smaller firms. However, in the research, which used a

quantitative method, using survey, to investigate the relationship between size and growth,

there were only 38 firms included in the analysis, while there were actually more than 100

firms that met the research criteria. The author also related this result to the attributes of

65

entrepreneurs. He suggested that a positive relationship between size and growth can be

expected because entrepreneurs in larger firms were likely to be more motivated by growth-

oriented factors and had greater entrepreneurial acumen and managerial ability than

entrepreneurs in smaller firms. Moreover, the researcher concluded that though firm size was

related to growth, the growth of a firm might be rather influenced by entrepreneurial

motivation when it was financial motivation rather than lifestyle motivation. The relationship

between size and small firm growth is also found in the work of Hamilton and Lawrence

(2001). The researchers found that size differences, measured by number of employees and

number of founders, had an effect on small business growth. They discovered that having

many founders can slow the rate of growth. Nevertheless, since the research was conducted

using a mail survey, the explanation of the number of founders related to growth was not

found.

A firm’s age is also seen to be related to small business growth. Hamilton and Lawrence

(2001) suggested that small firm growth could be expected more in younger firms than in

older ones. Likewise, Glancey (1988) discovered that younger firms grew more rapidly than

older ones. However, neither of these studies provided any explanation for the relationship

between a firm’s age and small firm growth. However, Smallbone et al. (1995), who

conducted research on the characteristics of high growth firms, stated that high growth could

be achieved by firms of any size and age.

3.3.3. ENTREPRENEURS AND BUSINESS GROWTH

It is revealed that although the business environment and a firm’s characteristics are found to

have a relationship with growth, it is entrepreneurs who are usually used to explain business

growth (for example, Glancey, 1988; Smallbone et al., 1995; Hamilton and Lawrence, 2001).

Entrepreneurs who are considered as factors that encourage growth include entrepreneurial

characteristics, growth aspiration, entrepreneurial abilities and entrepreneurial motivation.

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3.3.3.1. ENTREPRENEURIAL CHARACTERISTICS

Morrison et al. (2003), who conducted the research in Australia, found that entrepreneurial

characteristics, that was determined by demographic variables, personal characteristics and

values and beliefs, can be used to explain small business growth. Their research on

entrepreneurial intention on growth discovered that Australian males and aged 31-50,

characterised as having vision, energy, and opportunism were related to firm growth.

However, since the aim of the research was to find the factors and characteristics that

contributed to firm growth, only small firms which showed a specific amount of growth in

employees and sales turnover rates were investigated. There was no further investigation as to

whether entrepreneurs in other countries or in non-growth firms might, or might not, have the

same characteristics. In the research of Moreno and Casillas (2008), it was suggested that

entrepreneurial orientation was associated with growth. The entrepreneurial orientation

described in the research as innovative, proactive and risk-taking was quite similar to

entrepreneurial characteristics in the work of Morrison et al. (2003). Establishing hypotheses

and testing them by using quantitative methods, the research aimed to analyse the relationship

between entrepreneurial orientation and business growth in an explicit manner. It revealed

that although the growth of firms can be predicted by using the relationship between

entrepreneurial orientation and a firm’s strategy, entrepreneurial orientation had no direct

relationship with growth. There was no further explanation for these relationships. Moreover,

there are also other aspects of entrepreneurs, such as having a high need for achievement

(McClelland, 1965), or independence (Shane, 2003) which were not included in this research.

3.3.3.2. GROWTH ASPIRATION

Smallbone et al. (1995) discovered that high-growth firms had the commitment to achieve

growth. Conducting research in England with companies which had a variety of attitudes to

growth, varied growth performances and less than 100 employees, the research found that

firms with growth commitment grew even in sectors where difficulties dominated over

opportunities and competitive environments discouraged their growth. This is also supported

by the work of Barringer and Jones (2004). The researchers found that the commitment to

grow leads to managerial problems diminishing and being overcome. Whereas Smallbone et

67

al. (1995) noted that wanting to grow was not a sufficient condition for actually achieving

growth and chose to investigate firm strategy, Barringer and Jones (2004) conducted the

research mostly on secondary data, analysed by quantitative methods. It is found that there

was no further explanation for the relationship between entrepreneurial growth-orientation

and business growth in both studies.

Unlike Smallbone et al. (1995) and Barringer and Jones (2004), the research of Wiklund and

Shepherd (2003) mainly aimed to analyse the relationship between growth aspiration and

achieving growth. Their research, based on the theory of planned behaviour (Ajzen, 1991),

showed not only that there was a positive relationship between growth aspiration and actual

growth in small businesses but that this relationship also depends on the education and

experience of small business managers and the business environment. However, in the

research, the growth aspiration was only presented on the group of entrepreneurs who wanted

to increase sales and number of employees. While it is assumed that other aspects of growth

can also generate growth aspiration, such as profit growth, asset growth, or equity growth

(Shepherd and Wiklund, 2009), the research did not include them. Hart (2000) stated that it

was possible that entrepreneurs had different aims for a firm’s growth; this was due to the

differences of contexts of economic, political and physical environment e.g., downsizing

could enhance profit in the short run and higher share prices and it was also thought to be a

major factor in increasing labour productivity.

3.3.3.3. ENTREPRENEURIAL ABILITIES

According to Perren (1999), factors that encourage growth of small businesses included being

expert in managing growth. Sixteen cases of small businesses that achieved growth were

investigated and it was found that ten of the sixteen firms had owner-managers who had

transferable support skills or management skills developed in previous employment. The

author explained that this skill provided expertise in managing growth. Although it was found

that the other six cases did not have owner-managers who possessed this management skill,

these owner-managers had key employees, partners, advisers or members of family, who

could provide support with the management of growth. Morrison et al. (2003) also discovered

that entrepreneurial ability, measured by education level, competence and business

knowledge was one of the factors that encouraged small business growth. Similarly, as

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mention earlier in section 3.3.3.2, Wiklund and Shepherd (2003) discovered that firm growth

depended on the level of education and experience of entrepreneurs. However, it has to be

noted that both Perren (1999) and Morrison et al. (2003) agreed that entrepreneurial ability

must be combined with other factors in order to generate small business growth. Morrison et

al. (2003) found that entrepreneurial ability must be balanced with entrepreneurial intention

and opportunity environment to stimulate growth. Perren (1999) also stated that achieving

growth would be from the combined influence of several factors. In his research, these factors

were entrepreneurial growth motivation, business resource access, external environment and

entrepreneurial ability. He suggested that these growth drivers must all be positive in order to

achieve growth.

3.4. ENTREPRENEURIAL MOTIVATION AND BUSINESS

GROWTH

Although the research of Glance (1988) mainly focused on investigating the influence of a

firm’s characteristics on small firm growth, it also discussed the relationship between

entrepreneurial motivations and small firm growth. The author stated that a suggested reason

why larger small firms grew faster than smaller firms could be because the first had

entrepreneurs who were motivated by pecuniary factors, while the latter had entrepreneurs

who were motivated by lifestyle factors. Unfortunately, this is just an assumption; there is

neither empirical evidence nor further explanation for the issue in this research. This is

similar to the work of Hamilton and Lawrence (2001). In order to explain the relationship

between a firm’s characteristics and small business growth, the research also investigated

entrepreneurial motivation. Using questionnaires, the start-up motivations of business

founders were investigated by ranking the seven possible responses listed in the

questionnaire. The researchers claimed that since the literature of founder motivation was

very large, they limited their attention to two of the many possibilities. These were pull

factors, which are about the prospect of a commercial opportunity and push factors, which are

about threat situations and unemployment. It was found that pull motivation generated faster

initial rates of growth. It is regrettable that the possible explanation of why initial motivation

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could generate firm growth is not clarified in the research. Furthermore, start-up motivation

was investigated some years after the firms started therefore it was possible that the founder

could have been influenced by other factors. There were also other researchers who believed

that growth was caused by profit motivation. Penrose (1995) stated, for example, that

business growth depended seriously on the spirit of entrepreneurs in pursuit of profit. The

author added that firms will not grow very large if entrepreneurs lack an unending search for

more profit. Hamilton and Lawrence (2001) found that entrepreneurial motivation, such as

profit and wealth, could affect the fast growth of firms. Nevertheless, Hart (2000) stated that

the aim to maximise profits was mentioned by most of the theories, however it was possible

that increasing sales was done to satisfy shareholders but not to maximise profits.

It is the work of Bellu and Sherman (1995) which directly investigated the link between

entrepreneurial motivation and growth. The research explored task role motivation that

consisted of five motivation patterns: self-achievement, risk-avoidance, feedback of results,

planning for the future and personal innovation. They were not generalised motives but were

in the limited domain of the entrepreneurial motivation brought in from Miner (1993). The

research was conducted in order to evaluate the link between these motivations and growth in

sales and profit. It was found that task motivations necessarily contributed to growth in sales

and profit. Self-achievement was revealed to be the most potent and consistent of the five

motivations in encouraging growth. However, it must be remembered that only five

motivations were investigated in the research, while it is evident that entrepreneurial

motivation is extremely varied (Hamilton and Lawrence, 2001). Moreover, the research chose

to investigate only entrepreneurs who were growth-oriented. Although the research applied

longitudinal studies, using quantitative methods did not provide a clear explanation of the

link between motivation and growth. Moreover, the authors emphasised that in order to

predict growth, motivation had to be interactive with entrepreneurial attribution style, which

was also measured in the research and the level of uncertainty in the relevant environment.

Previous research showed that entrepreneurial motivation might be used to explain

entrepreneurial growth (Glance, 1988; Hamilton and Lawrence, 2001). Smallbone et al.

(1995) believed, with regard to the importance of entrepreneurial motivation, that the

motivation of owners was clearly an important factor to consider in analysing growth. Some

researchers using quantitative methods had successfully identified the link between

entrepreneurial motivation and growth (for example, Bellu and Sherman, 1995). However

Bellu and Sherman, (1995) believed that entrepreneurial motivation alone might not be

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enough to encourage actual growth. This was supported by Dobbs and Hamilton (2007) who

discovered that the relationships between entrepreneurial motivation and growth of small

businesses were generally not very strong. To date, further explanation about the assumption

of the link between entrepreneurial motivation and small business growth cannot be found.

There is little evidence regarding the linkage of entrepreneurial motivation and business

growth.

3.5. HOSPITALITY AND TOURISM INDUSTRY AND SMALL

BUSINESS GROWTH

In the hospitality and tourism fields, small business growth has also been investigated.

Previous research revealed that within the hospitality and tourism industries, entrepreneurs

can be separated into different types by personality, background and behaviour, there are

craftsmen entrepreneurs and opportunistic entrepreneurs (Williams and Tse, 1995), or divided

by education and experience, they are categorised as professional, amateur professional,

operator and amateur (Chell and Pittaway, 1998). The following research found that

differences in entrepreneurial type generate different effects on small business growth.

Using surveys to investigate a total of 901 restaurant entrepreneurs in the US, Williams and

Tse (1995) found that entrepreneurs can be categorised into three types: opportunistic

entrepreneurs, craftsmen entrepreneurs and a combination of both opportunistic and

craftsmen entrepreneurs. They described how these types of entrepreneurs related to the

company’s growth rate. It was suggested that opportunistic entrepreneurs, who were

categorised as having high levels of education and a wide variety of work experience, usually

had a high rate of company growth. Moreover, business growth was considered as their

measure of success. In contrast to opportunistic entrepreneurs were craftsman entrepreneurs.

It was stated that craftsman entrepreneurs who had narrow educational and managerial

experience enjoyed low growth rates. While opportunistic entrepreneurs were highly oriented

towards a business’s future, craftsman entrepreneurs tend to be content with making a

comfortable living. The research discovered from the surveys that entrepreneurs in the

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restaurant sector in the US were mainly opportunist entrepreneurs and only a small number of

entrepreneurs were of the craftsman type. It was also revealed that there were entrepreneurs

who were in between opportunistic and craftsmen entrepreneurs. The growth rate of the third

type of entrepreneur was not presented. Although the research suggested that the types of

entrepreneurs reflected the growth rate of a company, it should be noted that the research did

not present empirical evidence on the relationship between these entrepreneurs and a

company’s growth. Moreover, while it was found that opportunistic entrepreneurs dominated

the sector, the research’s response rate was very low with only 15 per cent or 133 responses

from a total of 901. Moreover, the authors noted that when times change; the characteristics

of entrepreneurs can also change.

While growth rate was assumed in Williams and Tse (1995), Chell and Pittaway (1998)

presented growth data obtained from entrepreneurship in the restaurant and café industry in

the UK. In their research, business growth was categorised into four types: expanding,

rejuvenating, plateauing and declining. The growth profile was matched with entrepreneurial

demography to show their relationship. It was found that 42% of businesses that were

expanding were owned by entrepreneurs with a formal qualification in the hospitality

industry and experience within the industry before starting a business. 49% of businesses that

were declining were owned by entrepreneurs who had no formal qualification or previous

experience in the hospitality industry before starting their business. It was also discovered

that business owners in the expanding type discuss more incidents about business

development than business owners in other growth types. The researchers assumed that more

incidents were discussed by owners in expanding firms because they might undertake

investment in the growth of their business. The research showed that differences in

entrepreneurial characteristics and behaviours might lead to differences in growth types. The

incidents found in the research were used to support entrepreneurial behaviours. However,

the explanation of why the entrepreneurial profiles and characteristics discovered in the

research could lead to business growth behaviour was not clarified.

Previous research also assumed that entrepreneurial motivation was related to business

growth. It is evident that entrepreneurs in hospitality and tourism industries are dominated by

lifestyle motivation (for example, Getz and Carlsen, 2000; Morrison and Teixeira, 2004).

Williams et al. (1989) assumed that the low rate of growth, which was evident in tourism

entrepreneurship in Cornwall, England, was because they were more motivated by lifestyle

rather than economic motives. However, Williams et al. (1998) did not conduct further

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research to explain the relationship between entrepreneurial motivation and business growth.

The same assumption is identified by Peters et al. (2009). The researchers suggested that

since quality of life was important to lifestyle entrepreneurs, they tended to hinder growth

when they recognised a decrease in quality of life. Unfortunately, there was no evidence that

supported this notion. Moreover, the researchers noted that this might not be applicable to

some entrepreneurs whose quality of life referred to income, prestige, social status and

reputation. These variables could enhance enterprise growth.

The relationship between entrepreneurial motivation and business growth assumed earlier

might be argued by the evidence found in the work of Getz and Petersen (2005). The

researchers conducted surveys among family business owners in the tourism and hospitality

industries in two resort areas (Canada and Denmark) and found that these business owners

showed a predominance of lifestyle orientations. The businesses, which were bed and

breakfast and arts and craft businesses, were identified as ‘clearly associated with lifestyle’

(Getz and Petersen, 2005, p. 219). The characteristics of these lifestyle owners were actually

similar to those identified in Williams and Tse (1995), as mentioned earlier. Nevertheless, it

was found that in this group, there was a minority that desired to grow their business and

some did achieve growth. Since the research aimed to identify the association between types

of business and business growth, there was no further explanation of the link between

entrepreneurial motivation and growth. To emphasise, Williams and Tse (1995) suggested

that time-gap might affect the change of characteristics. Moreover Getz and Carlsen (2000),

who conducted research to search for characteristics of family and owner-operated businesses

in the rural tourism and hospitality sectors, found that these industries attracted a diversified

group of entrepreneurs. They further suggested that different tourism destinations can lead to

different types of businesses and different types of investors. It is also evident that research in

Finland conducted by Komppula (2004) portrayed different results. The research investigated

the growth motivation and definition of success of rural tourism entrepreneurs.

Entrepreneurial motivation was also discovered. It was revealed that entrepreneurs were

motivated by the interesting and challenging character of the industry, independence and

freedom of the entrepreneur and coming across a good opportunity. The author also found

that 10 per cent of the entrepreneurs aimed to expand their business rapidly and 55 per cent

aimed to grow slowly in the long run. Only 6 per cent wanted to decrease activities and 30

per cent aimed to maintain business activities. Again, the research supports the importance of

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context, in which different context perhaps has influenced the results. In this case, the

research focuses on rural tourism entrepreneurs.

Internal and external environments are also found to be restrictive factors that block small

business growth in the hospitality and tourism industries. Morrison and Teixeira (2004) found

that business growth in the hospitality and tourism industries was restricted by physical,

human and financial factors. The researchers conducted interviews on small hotels,

guesthouses, and bed and breakfasts in Glasgow. They found that although these

entrepreneurs were dominated by lifestyle objectives, it was evident that some entrepreneurs

still had enthusiasm for expansion. The researchers discovered some obstacles which retarded

the development of these businesses. This raises an important question whether, according to

previous research, entrepreneurs do not want to grow at all or they want to grow but are

constrained by barriers. According to Morrison and Teixeira (2004) the problems that

blocked the expansion of these small accommodation businesses were identified. It was

claimed that the lack of physical space due to the intensely built up urban environment and

government planning restrictions forced the owners to give up expansion, even if they had the

motivation. Moreover, it was thought that expansion could ruin the cosiness of the

accommodation and the distinctive differentiating features related to ‘smallness’. The

research further revealed that some entrepreneurs were concerned about their ability to handle

the operation after the expansion. While previous research identified that a lack of financial

resources could restrict business growth (Dobbs and Hamiltom, 2007), this research found

that owners were rather anxious about their ability to repay loans.

To emphasise, the importance of understanding entrepreneurial motivation is underlined

when business strategies, focusing on business growth, are believed to be connected with

these motivations. In the hospitality and tourism industry, different types of entrepreneurs are

motivated by different motivations, thus, this might influence the differences in business

growth. While lifestyle style motivation is dominant among entrepreneurs in hospitality and

tourism industries (for example, Getz and Carlsen, 2000; Morrison and Teixeira, 2004; Getz

and Petersen, 2005), some researchers believed that it might negatively influence the growth

of business (Williams et al., 1989; Peters et al., 2009). This can be argued since some

researchers demonstrate that some lifestyle entrepreneurs grew their business (Getz and

Carlsen, 2000). Some of the entrepreneurs, who are not growing, still contribute to the

industry as Ateljevic and Doorn (2000) argued that, with non-growth business, lifestyle

entrepreneurs can engage in niche markets and often were instrumental in the creation and

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introduction of innovative produce, while stimulating regional development with a sense of

place and community. Their research portrayed that without a growth strategy, these

entrepreneurs still contributed to economic development. Moreover, the different contexts for

conducting research, such as Cornwall, England (Williams et al., 1989), New Zealand

(Ateljevic and Doorne, 2000), and Scotland (Morrison and Teixeira, 2004) emphasise that

context might essentially be connected to entrepreneurs and entrepreneurship and lead to

differences in findings. To assume that these entrepreneurs choose not to grow their business

could prevent them from receiving proper support in terms of resources from the government

(Morrison et al. 2003). It can be assumed that further research in a broader context may

generate greater knowledge about growth in small businesses in the hospitality and tourism

industries.

3.6. THE DEFINITION AND CHARACTERISTICS OF BOUTIQUE

HOTELS

There is no universally accepted definition of boutique hotels (Lim and Endean, 2008).

According to previous research and articles on boutique hotels, scholars have found that it is

rather difficult to define a boutique hotel (Hartesvelt, 2006). Anhar (2001) stated that the

definitions of boutique hotel vary and O’Brien (2006) found that boutique hotel rather a term

used in a scatter-gun way for a variety of outfits. However, there are scholars who have

attempted to define the term, for example, Aggett (2007) states that boutique hotels are

contemporary, design-led hotels. They have up to 100 bedrooms and offer unique levels of

personalised service and high-tech facilities. Baker (2012) defined boutique hotels as small,

trendy properties, marketed on bringing unique, location-specific experiences to travellers.

Mcintosh and Siggs (2005) found that the uniqueness, characteristics, individuality of the

physical surroundings, natural setting, ambience, or service provided can be used to set

boutique accommodation apart from traditional forms of accommodation. Anhar (2001)

suggested that the majority of boutique hotel owners agreed on some primary features of

boutique hotels which are architecture and design, service and target market.

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It is agreed that design is an important feature that differentiates boutique hotels from others.

In the UK boutique hotels differentiate themselves by using “individual” or “unique” to

describe the design of their rooms (Lim and Endean, 2008). This was similar to the research

findings conducted in New Zealand by Mcintosh and Siggs (2005). They found that in

designing boutique hotels, the owners used their perceptions of distinctiveness, unique

character or location in designing and decorating their accommodation. In South Africa,

Rogerson (2010) found that boutique hotels were distinguished by the experiential quality

which included individualised décor and design. They added that the uniqueness of character

and theme indicated a boutique hotel to be more than a bed and breakfast. In the UK, Aggett

(2007) found that unique interior architecture, unique building and unique pieces of furniture

were found to be of the most value among customers. However, Lim and Endean (2008)

argued that though individuality was found to be the most important aspect of design, they

discovered that the distinctiveness of the boutique hotel was from having incorporated

contemporary luxuries in its premises while preserving the property’s tradition of service and

heritage. This was supported by Rogerson (2010), since the author found that in South Africa

boutique hotels are found to have luxury characteristics through their unique standard of

décor and design. Mcintosh and Siggs (2005) also discovered that boutique accommodation

was demanded by guests looking for high quality, up-market or exclusiveness. In addition,

the historic aspect of the building was an important feature of boutique hotels and used to

create individuality (Lim and Endean, 2008). However, Mcintosh and Siggs (2005) revealed

that according to guests, a historic building did not appear to be regarded as a major

difference of boutique hotels.

The number of rooms is widely discussed in the literature on boutique hotels. Rogerson

(2010) stated that boutique hotels contained a smaller numbers of rooms. Lim and Endean

(2008) revealed that, in the UK, the majority of privately owned hotels had less than 50

bedrooms and the average number of bedrooms was 30. Though they found that the number

of rooms in boutique hotels ranged from six to 222, they stated that the majority of the

literature on boutique hotels agrees that they have fewer than 100 rooms. Likewise, in South

Africa, 77 per cent of boutique hotels provide 25 rooms or less (Rogerson, 2010).

Rogerson, (2010) found that the characteristics of boutique hotels include service excellence,

individuality, exclusivity, privacy and a high level of personalised attention. To be more

specific, Rogerson (2010) explained that guests entering a boutique hotel will receive

personalise attention and a caring, flexible service, while a personal relationship is developed

76

by knowing the guests’ names and their individual preferences and staff are able to deal with

customers individually as they are able to multitask. Mcintosh and Siggs (2005) supported the

idea that a personal relationship between host and guest could be the key to personalised

service. This is actually similar to service in small hotels where personal service is provided

to customers and service providers have to multitask (Morrison and Teixeira, 2004).

However, service in small businesses is usually discussed in terms of the relationship

between owner and customer, while in boutique hotels, it is between staff and customer. Lim

and Endean (2008) clarified that personalized service is achieved by a high staff-to-guest

ratio and the ability to anticipate guest requirements and make the guest feel special and

individual. Regardless of the poor response rate in their research, Aggett (2007) found that

room service, cleanliness and friendly and helpful staff were indicated as the most valued

services in boutique hotels. Yet the authors suggested that staff training is required to meet

both quality and personalised service requirements. However, Lim and Endean (2008)

suggested that because boutique hotels were small with few guests, it allowed staff more

opportunities to get to know guests and deliver service in a friendly manner. As a result it can

create a relaxed and homely atmosphere.

Other issues about boutique hotels discussed among scholars include location, hotel grading,

and hotel facilities. Lim and Endean (2008) found that the majority of boutique hotels were

located in city centre locations. Rogerson (2010) discovered that the boutique hotel was an

urban phenomenon in South Africa. Aggett (2007) found that location is important to

purchase decisions. The author stated that all of the sampling in the research was largely

located in city centres. On the issue of hotel grading, Lim and Endean (2008) say that

boutique hotels can be three- to - five-star, although some hotels do not have any star rating.

However, Rogerson (2010) found that boutique hotels were assessed against grading criteria

which most found, did not apply to them. It is revealed that while being intimate was more

significant in boutique hotels than in large corporate hotels, the criterion was not applied in

the current grading system in South Africa. On the question of boutique hotel facilities,

although Rogerson (2010) stated that the facilities required in boutique hotels were seen as a

problem in grading hotels, the author did not provide further information on this issue.

Furthermore, according to previous research on characteristics of boutique hotels, facility is

mentioned the least. However, Lim and Endean (2008) suggested that the restaurant facility

was an important aspect of boutique hotels. It is also worth noting that most of the research

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was conducted using customers as its sample (Mcintosh and Siggs, 2005; Aggett, 2007; Lim

and Endean, 2008).

3.7. CHAPTER CONCLUSION

This chapter reviews the previous literature related to small business growth. Firstly, it

overviews the research approach to small business growth discovered in general industries.

Then, the chapter focuses on reviewing previous research conducted on the factors that

generate small business growth. This is separated into three sections: business environment

and business growth, business characteristics and business growth and entrepreneurs and

business growth. Then it discusses on entrepreneurial motivation and business growth. The

chapter also provides evidence of business growth in the hospitality and tourism industry.

Previous literature demonstrated a connection between entrepreneurial motivation and

business growth.

To emphasise, previous research attempts to generate an understanding of business growth. It

appears that research on the issue is rather disjointed. Nevertheless, it has provided a variety

of evidence about business growth, including the essential recognition that growth in

businesses might be different according to the differences of entrepreneurs and

entrepreneurship in different settings. Since a different context is thought to influence the

differences in findings about entrepreneurs and entrepreneurship, it is proposed that, to

generate greater understanding, business growth should be investigated from an

entrepreneurial perspective.

Finally, the chapter discusses the definitions and characteristics of boutique hotel from

previous research. It can be concluded that boutique hotels share some similar characteristics.

They have a unique design and decoration of the hotel. They contain a small number of

rooms and provide exclusive service in which guests receive personalised attention.

Nevertheless, it appears that the definition of boutique hotel is rather varied and different. To

date, there is no universal definition of a boutique hotel. The following chapter is devoted to

discussing the research methodology.

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CHAPTER FOUR: METHODOLOGY

4.1. INTRODUCTION

Tribe (2001) stated that methods and methodology are different. Method is a certain way of

approaching a research question. However, in order to ensure that a study adopts a particular

technique that has scientific validity, methodology must be considered. It takes into account

the nature of the research questions and considers a range of possible methods which are

appropriate approaches. The researcher has to develop the research methodology with an

awareness of possible problems and premature closure. Proper attention to methodology

would address the research problem and generate an approach using appropriate methods.

This is agreed by Saunders et al. (2009) who state that although the researcher needs to be

concerned with the method adopted for data collection to answer research questions, it is

necessary to examine the issues underlying the choice of data collection technique and data

analysis procedures. The authors compare the data collection and data analysis methods as

the centre of the research onion, of which important layers need to be peeled away before

finally reaching the centre.

The objective of this section is to explain clearly the research philosophy and methodology

adopted for this research and to justify the selected approach. The second objective is to

explain the adopted research design and to present the research process. The third objective is

to describe the process of collecting the data which is composed of two stages: the collecting

of preliminary data and the main data. For the last objective, the chapter carefully explains

each stage of data analysis which leads onto the research findings in Chapter Five. This

section is composed of data transcribing and the analysis of research data. Finally, this

chapter aims to show that the research philosophy, methodology, data collection methods and

79

the analysis of the data accomplish the objectives of this research. It has to be noted that

many parts of this chapter refer to the previous discussion on the issue of entrepreneurial

motivation, business growth and the research context. Therefore, it is reasonable to begin the

chapter by representing the previous discussion on the issues and restating the research

objectives which lead to the setting up of the research questions.

4.2. THE PREVIOUS DISCUSSION

In Chapter Two, entrepreneurial motivations were reviewed separated into three perspectives

i.e. economic, psychological and sociological. The previous research conducted with

differences of perspective had generated a variety of results on the issue. Although these

results provide a better understanding of the issue, including entrepreneurs and

entrepreneurship, it is argued that the underlying meanings of the variables discovered in

previous research need a further clarified explanation if researchers seriously want to

understand entrepreneurship (Morrison and Teixeira, 2004). Moreover, a significant question

is raised as to whether context interplays with the findings of entrepreneurial motivation. It is

evident from previous research in the hospitality and tourism field that context has an effect

on the decision to enter entrepreneurship. However, research in this field is somewhat lacking

in a broader context (Thomas et al., 2011) and entrepreneurs in different setting might be

motivated by different entrepreneurial motivation. Therefore, this research aims to generate

the underlying clarification of motivational factors, including explaining if context interplays

with entrepreneurship. Insight into entrepreneurial motivation could contribute to the

knowledge in the entrepreneurship field; as Evans (1949) stated identifying entrepreneurial

motivation could lead to understanding of the existence of entrepreneurs and

entrepreneurship. It would also generate the appropriate approach to entrepreneurs in the

research context who essentially contribute to the economy of the Northern Thailand region.

In addition, the knowledge on business growth could generate a greater understanding of

entrepreneurship (Kuratko et al., 1997). It is evident in Chapter Three that researchers have

attempted to generate an understanding of business growth. A variety of aspects and results

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on business growth can be derived from previous research. However, it is argued that the

knowledge is still poorly understood (Hamilton and Lawrence, 2001). Although it features a

wide range of results, it is rather disjointed (Dobbs and Hamilton, 2007). The study of

business growth is significantly important to the hospitality and tourism field. It is believed

that business growth in the field is impeded by lifestyle entrepreneurs who dominate this

sector. Nevertheless, it is argued that the majority of previous research in this field is mainly

conducted in a Western context. Therefore there is a need for further research in a broader

context.

Chapter Three shows that there is a variety of boutique hotel characteristics, yet some results

were contradictory and few results were from investigation of the owners’ view. Therefore,

this research conducted an investigation into the view of entrepreneurs towards boutique

hotels to generate the broader view. Moreover, the results could benefit the industry and

economic sector of Northern Thailand, since this type of business is rapidly expanding and

having a positive impact on the area.

4.3. RESEARCH OBJECTIVES AND RESEARCH QUESTIONS

The debate aims to establish three research objectives:

(OJ1) To identify and gain an insight into the motivation of entrepreneurs in boutique

hotels in Northern Thailand

(OJ2) To identify and gain an insight into the business growth of boutique hotels in

Northern Thailand

(OJ3) To compile and synthesise the background information about the boutique

hotels

These research objectives pose three research questions:

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(RQ1) What is entrepreneurial motivation in creating and operating boutique hotels in

Northern Thailand?

(RQ2) How do entrepreneurs operating boutique hotel in Northern Thailand view

business growth?

(RQ3) What do the investigated entrepreneurs consider constitutes a boutique hotel?

The purpose of research can be classified in three ways: explanatory, descriptive and

exploratory. Explanatory aims to identify the causal relationship between variables and seek

to explain data in relation to variables (Saunders et al., 2009). Descriptive aims to describe

‘what is’ without further explanation of ‘why’, for example, a description of a pattern of

behaviour or activities in order to update or not update previous studies. A descriptive

purpose might be seen to overlap with the exploratory study (Veal, 2011). However, it is

clarified that an exploratory study is about finding ‘what is happening’ (Saunders et al.,

2009).

The ultimate purpose of this study is to discover an insight into entrepreneurship. Therefore,

it is believed that entrepreneurship needs to be explored. This research must not only identify

variables such as motivational factors but also has to develop a greater comprehension of

these variables e.g. how these variables are seen from the viewpoint of the entrepreneurs and

in their language and experiences. Hence this research is an exploratory study that leads to a

better explanation of entrepreneurship

This research adopts subjectivism as its research ontology and interpretivism as its

epistemological stance. Therefore, the research methodology is qualitative. The data

collection method is through in-depth interviews with the owners of boutique hotels in

Northern Thailand. Thematic analysis is employed to analyse the data. The justification of

selected methodology and methods are identified within the relevant section of this chapter. It

is believed that the adopted research methodology and method answers the research

questions.

4.4. RESEARCH PHILOSOPHY

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The importance of research philosophy is that it provides a guide for the researcher in

developing knowledge in a specific field (Saunders et al., 2009). Existing knowledge can be

interpreted and obtained differently according to the researcher’s view of the world. It is best

for the researcher to realise their philosophical commitment. To understand their perspectives

towards the nature and development of knowledge, researchers have to engage with the

concepts of ontology and epistemology.

Ontology is concerned with assumptions about the existence of reality. Saunders et al. (2009)

state that it is assumptions about the way the world works. According to them, there are two

aspects of ontology: objectivism and subjectivism. The authors explain that objectivism is the

belief that the existence of reality has no connection to social actors, while subjectivism is the

belief that reality is a construct of the perceptions and consequent actions of social actors.

Gray (2009) states that epistemology is a justification of what types of knowledge are

legitimate and adequate in a particular field. There are two perspectives of epistemology:

positivism and interpretivism. An important aspect of positivism is that the social world

exists externally from the researcher and social elements can be measured directly through

observation. In addition, reality is seen in terms of factors that can seen, smelt and touched

e.g. scientific observation adopts positivism for obtaining knowledge. Saunders et al. (2009)

explain that researchers who adopt a positivist view normally develop hypotheses from

existing theory and then collect data to test them. They investigate facts that cannot change,

rather than impressions. The researchers see themselves as having little impact on the subject

of research. Easterby-Smith, et al. (2008) states that positivism benefits research that has

wide coverage of a situation. Research can be conducted with large samples which are

considered fast and economical. However, its drawbacks include being ineffective in

understanding a process or the significance that people attach to actions. Therefore, it is seen

as rather inflexible and artificial; a process in which the data can only be used to support

discovered knowledge but may not be relevant to real actions. It is not useful in clarifying

theories and focuses only on ‘what is’, or ‘what has been recently’.

With the emphasis on human research, interpretivist philosophy is the belief that the

understanding of differences between humans who are influenced by variances in social

factors is necessary (Saunders et al., 2009). It is believed that to ‘understand reality’ by using

a personal interpretative process is more important than explaining causal relationships by

means of objective ‘facts’ and statistical analysis (Gummesson, 2000). Contrary to

83

positivism, interpretivism sees ‘reality’ as socially constructed and given meaning by people

(Easterby-Smith et al., 2008). Saunders et al. (2009) explains that because human beings are

not objective, their actions tend to be influenced by different factors, according to differences

in their roles in society. Gray (2009) noted that the interpretivist does not believe in one-to-

one relationships between a human being (subject) and the world (object). He added that

social reality is different from the laws of science; therefore studying social reality requires

different kinds of methods. Gummesson (2000) states that general characteristics become of

lesser interest. Researchers concentrate rather on specific features and language. The author

stated that the interpretivist endeavours to be part of the action and acting, to be able to

comprehend certain types of problems in the social field. Expecting creativity and novel

approaches, researchers act against the awkward rigidities of positivism. Table 4.1 presents

the differences between positivism and interpretivism on the issues of basic belief,

concentration and applied methods.

Table 4.6: Differences between Positivism and Interpretivism

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Positivism Interpretivism

Basic belief The world is external and

objective

The world is socially

constructed and subjective

The observer is independent

from what is observed

The observer is a party to

what is being observed

Science is value-free: the

choice of what to study and

how to study it is determined

by objective criteria rather

than human beliefs and

interests

Science is driven by human

interest

The researcher should Focus on facts Focus on meanings

Locate causality between

variables

Try to understand what is

happening

Formulate and test

hypotheses (deductive

approach)

Construct theories and

models from the data

(inductive approach)

Methods include Operationalizing concepts so

that they can be measured

Using multiple methods to

establish different views of a

phenomenon

Using large samples from

which to generalise to the

population

Using small samples

researched in depth or over

time

Quantitative methods Qualitative methods

Adapted from: Easterby-Smith (2008) and Gray (2009)

Gray (2009) states that the way in which a researcher sees the world and the researcher’s

epistemological stance are influenced by the theoretical perspective adopted by him/her.

From reviewing previous research on entrepreneurs and entrepreneurship, the researcher

finds that although previous research generated a greater comprehensive on entrepreneurship,

it provided only a partial explanation of the issue. This might be due to the fact that the

majority of the research approaches entrepreneurship by viewing it separately from social

conditions. To clarify, previous research demonstrated that entrepreneurship is viewed

objectively and its explanation is believed to entirely lie within the discovered entrepreneurial

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factors, such as motivational factors. On the contrary, this research views entrepreneurship

subjectively and entrepreneurs are social actors. Entrepreneurs and entrepreneurship are

shaped by social conditions while they grow within their society. Entrepreneurs, as

individuals in a society, interpret the world around them. They form reality and its meaning,

including the explanation of what entrepreneurship is. Entrepreneurs living in different

settings can generate different meanings of reality and entrepreneurship could result

differently. To emphasise, it is strongly believed that entrepreneurship and entrepreneurs are

subjectively and inter-subjectively understood by human beings. They exist through the

interpretations made by individuals and/or groups in different cultures and society. Hence, in

order to understand entrepreneurs and entrepreneurship, social conditions within the context

in which entrepreneurs and entrepreneurship exist must be considered.

Since Gray (2009) stated that positivism adopts only one perspective on reality, the

researcher understands that research that adopts positivism might not be able to provide a

range of understanding and interpretations that entrepreneurs may hold. Hughes and Sharrock

(1997) proposed that to understand actions, events and artefacts of people in society, research

must be obtained from within the life which these people experience. Veal (2011) notes that

interpretivism allows the researcher to ‘get inside’ the minds of subjects and see the world

from their point of view. The author adds that interpretivism provides people’s own

explanation of their situation and behaviour and leads to an explanation of reality. Hence the

researcher, whose philosophical belief is interpretivism, believes that entrepreneurs and

entrepreneurship need to be examined by recognising that they are subjective. The knowledge

on entrepreneurs and entrepreneurship is strongly believed to be an inter-subjective construct

rather than objective and true. This belief results in the researcher’s epistemological stance

that it is defined as being interpretive and the application of qualitative as research

methodology.

4.5. RESEARCH APPROACH

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There are two different research approaches: deductive and inductive. Saunders et al. (2009)

stated that the research approach differs according to the research philosophy.

According to Saunders et al. (2009), deduction is suitable for scientific research, in which the

development of a theory is subjected to a rigorous test. Robson (2011) proposed five stages of

deductive research. He states that first a hypothesis is adopted from existing theory.

Secondly, research reveals the measurement of concepts or variables or assumptions about

relationships between variables. Thirdly, the hypothesis is tested. At the fourth stage, specific

outcomes are examined and finally, the researcher modifies the theory with the finding.

Wengraf (2001) suggested that a deductivist model can only generate the answer of the truth

or falsity by testing a particular section within the hypothesis that is supported by the

evidence of the facts or refuted by them. Gray (2009) criticised the approach as the

measurement and data collection would be done only on what can actually be observed.

Hence, subjective and intangible evidence is usually not included.

The inductive approach is used to answer the question of what is going on and to understand

better the nature of the problem (Saunders et al., 2009). Gray (2009) states that, contrary to

the deductive approach, in the inductive approach the researcher does not jump to

conclusions with basic data but rather aims towards discovering connections and reasons.

Therefore, instead of establishing hypotheses from existing theories, the inductive approach

usually begins with plans for data collection. The results of analysis form a theory (Saunders

et al., 2009). To clarify, Wengraf (2001) stated that the emerging data are used to dictate the

theorisation. According to this, Gray (2009) warned that a degree of reliability has to be

ensured by, for example, taking multiple observations from multiple cases or instances rather

than drawing conclusions from only one case. Table 4.2 presents the differences between

deductive and inductive approaches to research.

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Table 4.7: Major Differences Deductive and Inductive Approaches to Research

Deduction emphasises Induction emphasises

Scientific principles

Moving from theory to data

The need to explain causal relationships

between variables

The collection of quantitative data

The application of controls to ensure

validity of data

The operationalization of concepts to

ensure clarity of definition

A highly structured approach

Researcher independence of what is being

researched

The necessity to select samples of

sufficient size in order to generalise

conclusion

Gaining an understanding of the

meanings humans attach to events

A close understanding of the research

context

The collection of qualitative data

A more flexible structure to permit

changes of research emphasis as the

research progress

A realisation that the researcher is part of

the research process

Less concern with the need to generalise

Source: Saunders et al. (2009)

This research is undertaken from the standpoint that entrepreneurs and entrepreneurship is

subjective and the knowledge can be derived from an inter-subjective understood by human

beings. Moreover, while entrepreneurs, as individuals in society, are shaped by society and

interpret the world around them, their life in different settings can impact differences in

results and the meaning of entrepreneurship. Establishing hypotheses from existing theory

and testing them might not lead to a greater explanation of the issues of entrepreneurs and

entrepreneurship. Moreover, different evidence and results might be discovered whilst

investigating in a broader context, and a deductive approach could prevent the researcher

detecting significant facts. Hence a deductive approach is thought to be an unsuitable

approach for this research.

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The primary purpose of this research is to discover rich descriptive data (Geertz, 1994) in a

particular context. To clarify, an underlying explanation of variables which are discovered

during the investigation of the issues must be clarified (Morrison and Teixeira, 2004). To do

this, the researcher must explore the issues from an entrepreneurial perspective, and must be

alert to data differences rather than on rigorous test aiming to identify only variables such as

motivational factors. An inductive approach allows the researcher to detect new emerging

data and to analyse them while understanding their relationship to entrepreneurs and

entrepreneurship. It allows the researcher to gain a deeper understanding of the issues and to

incorporate emerging issues and questions in the design. It permits the researcher to dictate

the theorization and to report on what actually happens within the investigating context.

Later, analysis of the results can lead to a greater understanding of the issues. The researcher

believes that through an inductive approach and a process of gathering data with an open-

minded approach, research will convey patterns, consistencies and true meanings of the

knowledge of entrepreneurship (Gray, 2009).

4.6. RESEARCH DESIGN

Easterby-Smith et al. (2008) states that research design is influenced by the ontology and

epistemology selected by researchers. Research design, in relation to epistemological

foundations, guides researchers in selecting research methods and in the analysis of the data

(Bryman and Bell, 2007).

4.6.1. QUALITATIVE RESEARCH

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The justification for choosing qualitative is determined by several points. First, despite a

large amount of quantitative research in entrepreneurship, it provides only a partial

explanation of the issue. Therefore, this research needs to obtain deep and insightful data to

gain understanding into the complexity of entrepreneurship. Second, entrepreneurship is seen

as human beings and exists in a social world, thus the research needs to consider social

conditions that are believed to influence the entrepreneurship. Third, the conducting of

research within the real and specific context could generate a better understanding of

entrepreneurship. Finally, it is crucial that the research is aware of emerging data because the

discovering of unusual data could also generate an insight into the issues. To emphasise, it is

strongly believed that the identification of motivation factors, the business growth and

boutique hotel without the deeper understanding of them would not be enough to generate a

greater clarified explanation of entrepreneurship.

Considering that ultimate aim of this research is to gain an insight into the complexity of

entrepreneurship, through entrepreneurial motivation, business growth and boutique hotel,

qualitative research is the most appropriate. Qualitative design is generally concerned with

the form of words, conveyed orally or in writing, including images and sound. The design

allows the researcher to gather a relatively large amount of information about the research

subjects, which may be individuals, places or organisations. It can be used to obtain a full and

rounded understanding of a subject’s behaviour, attitudes and/or situation (Veal, 2011). It

emphasises the way in which individuals interpret their social world rather than believing in

the norms of the natural scientific model and of positivism. Qualitative research allows

researchers to understand social reality. Though it usually lacks structure, it permits the

chance of discovering remarkable or unexpected events that propose a new line of

investigation (Bryman, 1989). Nevertheless, qualitative research has a practical limit on the

number of subjects in the data collection and analysis process. Therefore, it has a more

limited amount of information in terms of quantity (Veal, 2011).

4.6.2. THE RESEARCH METHOD: INTERVIEW

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Sekaran (2003) states that the use of appropriate methods greatly enhances the value of

research. In qualitative research, there are several choices of data collection method, such as

observation and in-depth interviews. When selecting data collection methods, the researcher

considers epistemological and ontological positions. The selected methods also depend on the

research questions, the context, structure and timing of the research, which type of data best

illuminates the research topic and on practical considerations (Ritchie and Lewis, 2003).

According to Saunders et al. (2009), interviews helps a researcher gather valid and reliable

data that is relevant to the research questions and objectives. It is suitable for research

conducted in an exploratory study. This is because interviews provide opportunities to probe

answers. Probing questions are used to explore responses that are significant to the research

topic. They can be open questions but have a particular focus or direction. Probing is used to

gain detail about particular ideas that are significant and add depth to the data. This allows

researchers to understand the meaning participants ascribe to various phenomena. Therefore,

a rich and detailed set of data can be collected. This is agreed by Ritchie and Lewis (2003)

who state that interview allows the opportunity for clarification and detailed understanding.

Saunders et al. (2009) state that while there are several types of interview, selecting the

appropriate type should be consistent with the research questions and objectives, the purpose

of research and the research strategy.

4.6.2.1. UNSTRUCTURED INTERVIEW

The unstructured interview is adopted as a research method for two main reasons. First it

provides opportunities to investigate in detail each person’s personal perspective. According

to Bryman (1989), the unstructured interview is important for finding greater detail. The

author states that it allows researchers to elicit respondents’ ways of thinking about the

issues. It starts with some general questions and respondents are allowed to speak about the

issues that they believe to be important. The unstructured interview not only provides

answers that inform the research of the perceptions of the individuals but also allows the

researcher to understand the situation in its totality (Sekaran, 2003). Moreover, the method

could involve the context of personal history and experiences of the entrepreneurs (Ritchie

and Lewis, 2003).

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Second, it provides opportunities to promptly further investigate emerging or interesting

information which could provide a significant explanation for entrepreneurship. While the

research focuses on the respondents’ view, an unstructured interview allows conversation to

be developed within the area of interest and concern (Gomm, 2008). Unstructured interviews

are not guided by pre-existing questions. Interviewers use an ‘aide-memoire’ to remind

themselves of the topics they want to cover. During the interview, the interviewer goes along

with the drift of the discussion and allows the respondent to respond freely (Bryman, 1989).

Further questions come from simply responding to points that seem worthy of being followed

up (Bryman and Bell, 2007). Therefore, more questions are prompted by things that

respondents have previously said and probing questions occur only if interesting themes

emerge (Bryman, 1989).

4.6.2.2. FACE-TO-FACE AND TELEPHONE INTERVIEWS

This research uses both face-to-face interview and telephone interviews. From the

experiences of interviewing the respondents, the researcher could clarify the advantages and

disadvantages from both types of interview. Thus, they become justifications for conducting

these types of interview.

The majority of the interviews conducted were face-to-face. The researcher was concerned

that this type of interview might be uncomfortable for the respondents, since they need to

interact face to face with the interviewer (Sekaran, 2003), but in fact they were relaxed and

comfortable to tell their stories. It is also agreed by both the researcher and the respondents

that the interviewer needs to be in a real context which is the boutique hotel to understand the

respondents’ stories. Therefore fact-to-face interviews allow the researcher to enter into the

real context. A respondent asked the researcher to drive to his hotel that was approximately

three hours from the researcher’s location. Some of the respondents walked the researcher

around the hotels while they told their stories. During the interview, the researcher could pick

up non-verbal cues from the respondents (Sekaran, 2003). These allowed the research to

adopt an appropriate approach to the entrepreneurs and generated opportunities to gain deeper

information e.g. it was necessary for the researcher to pay attention to the respondents’

stories. Eyes contact and responding to the stories encouraged the respondents to generate

insight into their stories. The researcher noticed that the interviewer’s facial expressions also

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encouraged the respondents to give more clarification on some topics. Moreover, when the

respondents made a face expression to show that they did not understand a question, the

interviewer could quickly rephrase the question. Therefore, a face-to-face interview allows

the researcher to adapt the questions as necessary, clarify doubt and repeat the questions

(Sekaran, 2003). Overall, face-to-face interviews generated insightful answers to research

questions.

The researcher prefers face-to-face interview and feels that the telephone interview should be

avoided as it was more difficult to gain an insight into the respondent’s stories e.g. the

researcher could not generate prompt probing questions. There was not chance to intervene

while the respondents spoke. Moreover, interrupting the conversation negatively affected the

stories. The respondents were not able to continue their stories after they were interrupted. In

addition, without non-verbal communication, interrupting the conversation by using voice

might be considered rude. It could negatively affect the relationship of the researcher and the

respondents. Moreover, having conversation via telephone, the participants might be less

willing to engage in exploratory discussion (Saunders et al., 2009). It might obstruct an

opportunity to gain an insight into topics. The interview may interrupt the daily routine of

respondents and this may cause the respondents aggravation (Sekaran, 2003). Moreover,

some participants might be less willing to provide much time to talk via the telephone

(Saunders et al., 2009). However, the researcher unavoidably had to conduct some interviews

via the telephone as the respondents were located in different geographical areas from the

researcher and it was convenient for both the researcher and the respondents. Therefore, it

could be said that potential advantages of telephone interviews are associated with access; the

researcher can conduct the interview although it was obstructed by distance. It also saved

costs, in term of travelling expense and time (Saunders et al., 2009). In order to reduce the

disadvantages of the telephone interview, the interview requests were made ahead of time.

The researcher discussed the purposed of the interview, gave an approximate idea of how

long the interview would last and set up an interview appointment before the actual interview

(Sekaran, 2003). The researcher also used a digital recorder to record the conversations

(Saunders et al., 2009). Overall, telephone interviews are appropriate only in particular

circumstances.

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4.6.3. THE RESEARCH INTERVIEW GUIDE AND QUESTIONS

In this research the interview guide was developed to instruct the interviews. An unstructured

interview guide is a brief list of memory prompts of areas to be covered and the guide can

help to gather the ways in which participants view their social world (Bryman and Bell,

2007). The interview guide can be found in the research purpose, interview questions, and

implication of the findings in Appendix 3. The purpose of the interview guide was also to

help initiate the conversation between the respondents and the researcher. It contains the

interview questions that introduce the discussion of the research’s key themes. Finally it

supports the research by reminding the reader of the research purpose, interview questions

and the implication of the findings.

This research initially adopted three questions for guiding the interview. Bryman and Bell

(2007) suggested that if a researcher sets up interview questions in an unstructured interview

guide, the questions should not be too specific. The first question was set up to answer RQ1

and complete OJ1. The first question is “Please tell me about how you started a boutique

hotel in Northern Thailand?” With this question, the respondents revealed their motivations

in creating and operating their boutique hotel. The question also allows the respondents to tell

their stories which relate to the motivation. Therefore, the answer generated an insight into

entrepreneurial motivation. Previous research on entrepreneurial motivation used a similar

question e.g. Getz and Carlsen (2000, p. 551) asked the respondents “Please describe why

you got started in this business?”

The second question was set up to answer RQ2 and complete OJ2. The second question is

“How do you see your business developing in the near future?” It aims to draw out the

respondents’ viewpoint about business growth. It provides the respondents with an

opportunity to liberally discuss the issue. The information gathered from the conversation

generated an insight into the business growth.

The third question was set up to answer RQ3 and complete OJ3. The third question is “How

do you see your hotel as a boutique hotel?” This question was intended to elicit the view of

the respondents toward the boutique hotel. It leads to the understanding of the respondents

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about the definition of a boutique hotel, the characteristics of boutique hotel and other related

issues.

However, the interview questions were revised after the preliminary study. Two questions

were added. The first additional question was placed after the first original question: “Please

explain what encouraged you to do this?” It was aimed to steer the respondents’ answers

towards their entrepreneurial motivations. The second additional question was placed after

the third original question, and asked: “What do you think about this term, boutique hotel?”

This was included because some of the respondents did not recognise their hotel as a

boutique hotel. Therefore, the question was added to further draw out the respondents’

viewpoint about boutique hotels.

Two letters were prepared. The first letter requested an interview with owners of boutique

hotels. The letter introduced the researcher and the research. It identified three main interview

questions which respondents would be asked. Finally, it formally requested an interview with

owners of boutique hotels. The letter also clearly stated that the interview would be

confidential and the information would be used only for this research. The letter gave a

contact email address and the mobile number of the researcher, in case the respondents

wanted to ask further questions. The letter was written in Thai which is the formal language

of Thailand (Appendix 2.1). Appendix 2.2 provides a translated version of the letter. The

second letter confirms the researcher’s student status (Appendix 2.3). This letter was from the

University of Surrey and was sent to confirm that the researcher is a current PhD student. The

letter was also intended to initiate trust between respondents and the researcher.

The interview was planned and conducted as follows. The letter requesting an interview was

sent before the interview date together with the letter to confirm student status via email.

Each interview started by the researcher handing the respondent hard copies of the letter

request for an interview and the letter to confirm student status. Thus, the respondents could

keep the letters as evidence of the interview. It also helped strengthen the dependability of the

research (Bryman and Bell, 2007).

The researcher introduced herself by providing information about her study and past career

experience. Being a lecturer in one of the well-known universities situated in Northern

Thailand, Chiang Mai University, was believed to have given credibility to the researcher and

to have built trust between the researcher and the respondents. The researcher then started by

stating the purpose of the study.

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The researcher emphasised that the data obtained during these interviews would be

confidential and would be used only for the purpose of the research study. The researcher

asked the respondents their permission to start recording the interviews using a good digital

recorder. The digital recording allows the researcher to concentrate on the interview while it

provides a permanent record (Robson, 2011). With the respondent’s consent, the researcher

started by asking the first interview question. During the interview, the interviewer must

avoid leading questions (Bryman and Bell, 2007). Further details of the procedures before

and after the interviews are given in the sections about the preliminary study (4.7.1) and main

study (4.7.2).

After all the key themes were introduced and the questions had been answered by the

respondents, the researcher ended every interview by thanking the respondents for giving

their valuable time to participate in the interview. The researcher also gave a gift, a small

notebook, to thank the respondents for kindly providing their information.

Although Bryman and Bell (2007) recommend that researchers choose a quiet and private

place for the interview, in this research the respondents chose the interview place because the

researcher was asked to visit the respondents’ hotel and they provided the area for the

interview. It has to be also noted that since the researcher decided to adopt unstructured

interviews, the actual interviews were flexible e.g. the questions were not asked in order.

However, the researcher made certain that the interviews generated answers to the research

questions.

4.6.4. OVERVIEW OF RESEARCH PROCESS

After setting up the research interview guide, this research conducted a preliminary study.

This aimed to generate an appropriate way to approach entrepreneurs. It evaluated whether

the selected method was an appropriate method for approaching entrepreneurs. It evaluated

whether the interview questions could lead to the answer to research questions. This stage can

be considered as a stepping stone, in which the research issues were refined (Saunders et al.,

2009). After the preliminary study, the method evaluation and a summary of preliminary

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study helped the researcher revise the interview guide. It was decided to continue conducting

unstructured interviews. Further detail of how the guide was revised and the justification for

conducting unstructured interview in the main study can be found in section 4.7.1, the

preliminary study.

After the revision of the interview guide, the researcher was ready to conduct the main study.

in which the researcher gathered several points related to the research key themes which are

entrepreneurial motivation, business growth and boutique hotels. However, the data were

fragmented as the unstructured interview allowed the respondents to speak freely. The

conversation occasionally dispersed e.g. a story seemed to be related to more than a key

theme. Further detail of the main study is presented in section 4.7.2. Therefore, the data from

the interview needed to be gathered and prepared for analysis, which lead to a better

understanding of the key themes. Finally, the data generated the answers to research

questions and accomplished the research objectives. The insight into entrepreneurship was

revealed.

Figure 4.1: Summary of the Research Process.

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Research process

Literature review

Set up interview guide Revise interview guide

Preliminary study Main study

Method evaluation Data analysis

Summary of preliminary study Findings & implications

Unstructured interviews with respondents Unstructured interviews with respondents

4.6.5. THE RESEARCH SAMPLE

This section provides an overview of boutique hotels in Northern Thailand. Then the

determinant of an appropriate sample is discussed. The method of selecting the sample for the

research is stated. Finally the detail of research respondents is provided.

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4.6.5.1. BOUTIQUE HOTEL IN NORTHERN THAILAND

Boutique hotels are one of the new types of hospitality business which have become firmly

established within the area of Northern Thailand (Untong et al., 2011). It was found that

before 2006, there were only 2-3 boutique hotels in Chiang Mai province but the number

grew to 15 in 2006 (Bangkok Biz News, 2006) and then to 50 in 2009 (Bangkok Biz News,

2009), and another 20 are expected to be established in 2010 (Bangkok Biz News, 2010). The

number of boutique hotel is recently untraceable. It was discovered from this research that the

majority of the respondents were not interested in advertising their hotels. Nevertheless, a

number of boutique hotels in Northern Thailand can be found in commercial websites (for

example, Chillpainai, 2012). The Bank of Thailand (2008) generated a report forecasting the

economic situation in Thailand and stated that the number of boutique hotels will continue to

grow.

Information about boutique hotels in Northern Thailand can be obtained from three sources.

The first are reports obtained from Thai newspapers. The second is the boutique hotels cluster

group called Chiang Mai Boutique Hotels. The group was established in order to help

members with marketing which can be seen from its website and promotions (Chiang Mai

Boutique Hotels, 2012). The third is Thailand Boutique Hotel Award, which provides a list of

the names and websites of boutique hotels in Thailand. This is a private organisation which

arranges competitions among boutique hotels in Thailand in order to promote them (Thailand

Boutique Awards, 2012).

Boutique hotels in Thailand apply local traditional architectural styles and use local culture

and historical interest in their design and decoration e.g. some hotels have been converted

from traditional buildings to become boutique hotels (Bangkok Biz News, 2006). In applying

local traditional architectural styles, each boutique hotel has their own style of decoration,

their own exceptional character, theme and concept (Thailand Boutique Awards, 2012) e.g.

Chiang Mai Boutique Hotels group describes itself as “small luxury boutique hotels” (Chiang

Mai Boutique Hotels, 2012). The importance of unique architectural styles is emphasised

when boutique hotels are recognised as a tourist attraction in their own right (Bangkok Biz

News, 2006) where tourists can enjoy the scenery and the beauty of the hotel’s décor and can

also experience the local culture and traditions through this outstanding atmosphere

(Bangkok Biz News, 2007). The number of rooms in boutique hotel is usually fairly small.

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In Chiang Mai, it was found that boutique hotels have from 2 to 60 rooms (Bangkok Biz

News, 2006). In order to qualify for the Thailand Boutique Award (2012), boutique hotels

must have between 4 - 50 rooms. According to the president of the Chiang Mai Boutique

Hotel group, boutique hotels should not have many rooms preferably between 10 and 40.

Although previous literature on small businesses in the hospitality sector revealed that owners

usually enjoy having a close relationship with customers and intimate service interaction is

handed directly by the owner (Getz and Carlsen, 2000), in Thailand, boutique hotel service is

discussed in terms of the relationship between staff and customers, not owner and customers.

It is proposed that the staff providing the service in boutique hotels should be at a ratio of one

member of staff per customer. It is assumed that this is related to the small number of rooms

within boutique hotels as they will be able to provide exclusive service (Bangkok Biz News,

2006). The president of the Chiang Mai Boutique Hotels group adds that providing service

within boutique hotels involves respecting the privacy of the customer (Bangkok Biz News,

2007); unfortunately there was no further information on how.

Other information about boutique hotels in Northern Thailand, which can be obtained from

secondary sources, includes the price. The president of Chiang Mai Boutique Hotels stated

that in Chiang Mai, boutique hotels are divided into two groups by price, upper level and

lower level. The upper level boutique hotels are priced at more than £100 per night, while the

lower level boutique hotels are priced at less than £100 (Bangkok Biz News, 2010). There is

no further supporting information as to why the prices were split into these two levels;

however it can be seen that the price of boutique hotels varies widely from a top level equal

to that of large chain hotels e.g. the boutique hotel Yesterday The Village, costs

approximately from £25 to £60 (Yesterday, 2007). Rachamankha Hotel, a boutique hotel

situated in Chiang Mai, offers prices from £120 to £350 per night (Rachamankha Hotel,

2014), while Four Seasons, a chain hotel situated in Chiang Mai, offers prices from £250 per

night (Four Seasons Resort Chiang Mai, 2014). This indicates the ability of boutique hotels to

compete with different types of hotel in terms of price.

4.6.5.2. DETERMINING AN APPROPRIATE SAMPLE

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In this section, the determinants for selecting an appropriate sample are explained. First, the

researcher must be confident that the selected sample can provide answers to the research

questions.

It appears that there is no official record of the number of boutique hotels established in

Northern Thailand. The number of hotels in Thailand can be obtained from the Thailand

National Statistical Office. However the number of hotels in this source is presented

according to region and these hotels are only categorised by the number of rooms (National

Statistical Office Thailand, 2014). Another source is The Thai Hotel Association. However, it

provides only a list of names of its members and these hotels are categorised by its chosen

standard, i.e. hotel stars (Thai Hotel Association, 2011). There is no official list of hotels

categorised by hotel type, e.g. boutique hotels, therefore no source provides the total number

of boutique hotels in Northern Thailand.

This research obtained a list of names of boutique hotels situated in Thailand from two

unofficial sources, Chiang Mai Boutique Hotels (Chiang Mai Boutique Hotels, 2012) and

Thailand Boutique Awards (Thailand Boutique Awards, 2012). Unlike other commercial

website, these two sources provide a clarification of how the hotels are recognised as

boutique hotels. The two sources comprise a list of names of 39 boutique hotels situated in

Northern Thailand. However, these two sources do not represent the total number of such

hotels. Saunders et al. (2009) state that there are two types of sampling techniques:

probability and non-probability. While probability sampling is applied to research when the

population is known, non-probability sampling is used when the total population is not

known. According to this it can be seen that the population of boutique hotels established in

Northern Thailand is unknown, therefore non-probability sampling was selected as the

sampling technique for this research.

There are three main types of non-probability sample: the convenience sample, the quota

sample and the snowball sample (Bryman and Bell, 2007). Saunders et al. (2009) note that

the easiest technique for identifying and obtaining a sample is convenience sampling. Though

Bryman and Bell (2007) agree that a convenience sample can be adopted to avoid difficulty

and cost, findings obtained from this technique are normally impossible to generalise. They

explain that since the sample is conveniently selected, researchers do not know of what

population the sample is representative. This technique is easily be biased by the researcher

because it focuses on the ease of obtaining data (Saunders et al., 2009). Quota sampling is

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adopted when the researcher has to select from a population in different categories, such as

age, gender and ethnicity. Relative proportions of people are grouped together, and then the

researcher selects a sample from each group (Bryman and Bell, 2007). Saunders et al. (2009)

say that snowball sampling is used when there are difficulties in identifying members of the

desired population. In conducting snowball sampling, the researcher has to make initial

contact with a small group of people who are relevant to the research topic. Then the

researcher asks these initial contacts to suggest further members of the population, who then

identify further members. Bryman and Bell (2007) warn that the technique might cause some

problems in some circumstances e.g. since recommended members are likely to be similar to

the recommenders, there is a chance that the sample would not be representative of the

population. However, the authors note that this usually occurs when snowball sampling is

used with quantitative research design. This technique is found to be more fitting with

qualitative research design, in which the research does not aim to generalise the findings.

Considering the research objectives, the qualitative research design and the difficulty of

identifying the population (Bryman and Bell, 2007; Saunders et al., 2009), the snowball

approach was adopted for this research as it is the only feasible sampling technique.

Saunders et al. (2009) state that there is no rule that decides on a suitable sample size in non-

probability sampling, especially when the researcher intends to collect qualitative data using

interviews. Rather, the logical relationship between sample selection technique and the

purpose and focus of the research is important. Therefore, the sample size depends on the

research questions and objectives. However, the most appropriate sampling technique that

indicates sample size must be selected, in order to ensure that the researcher conducts

sufficient data collection. The authors note that in collecting qualitative data by conducting

interviews, the researcher is recommended to collect data until data saturation is reached.

Guest et al. (2006) share the same idea that non-probability sample sizes are not definable

and the size of the sample usually relies on the concept of saturation. However, based on their

research, they found that saturation of data occurred within the first 12 interviews. Saunders

et al. (2009) argue that 12 interviews are unlikely to be sufficient if the sample is drawn from

a varied population. Creswell (2007) recommends that when research is intended to develop a

model or theory using saturating categories, interviews should be conducted with between

20-30 individuals.

4.6.5.3. THE RESEARCH RESPONDENTS

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With the list of 39 boutique hotels (Appendix 1), the researcher started by sending an email

with attached letters requesting an interview (see section 4.6.3). From 39 hotels, there was not

one reply. The researcher had to follow up the emails by directly telephoning the hotels. This

occurred two days after the emails were sent. The researcher used the hotel telephone

numbers, since hotel owners’ numbers could not be found (see section 4.7); therefore the

majority of the people who picked up the calls were employees. The researcher was told to

wait for further contact via email. The employees claimed that it was impossible to talk to the

owner at that moment. There were respondents who promptly rejected the interview request

on the first calls, with the rejection being made by hotel owners or managers. Second calls

were made to follow up the request. The majority of the hotels forgot about the interview

request and asked the researcher to send a request email again. The researcher never received

any reply email from all contacted hotels.

While waiting for the email response from hotels, the researcher decided to adapt the strategy

for approaching potential respondents. Advice about how to contact the owners of the hotels

was asked from work colleagues, friends and family. It was found that work colleagues,

friends and family were friends with a number of owners of boutique hotels. They agreed to

introduce the researcher to the respondents. First, telephone calls were made from the work

colleagues, friends, and family to the respondents. This was to introduce the researcher and to

make an initial interview request. When the respondents agreed to participate in the

interview, the respondents’ telephone numbers were given to the researcher. The researcher

had to make further contact by calling the respondents to state briefly the purpose of the

research and make an interview appointment. The researcher also asked for the respondents’

direct email contact. Thus after the telephone call, the letters requesting an interview and

confirming student status (Appendix 2) were sent via email.

In each interview, the researcher asked the respondents to recommend other owners of

boutique hotels. It was found that the respondents were reluctant to give other owners’

contact information to the researcher. Therefore, only the names of other boutique hotels

were suggested. The researcher, then, asked her work colleagues, friends and family for

further contact information. At the end of the fieldwork, all of the respondents were contacted

via the assistance of the researcher’s work colleagues, friends and family. This included an

interview with an owner whose manager had previously rejected the interview request. This

rejection occurred when an interview was requested by telephone and before being

introduced by a work colleague.

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In total, the researcher conducted interviews with 32 hotels. Among these hotels, 12 were

listed in the first boutique hotel list. Another 20 hotels were recommended by the

respondents, including the head of the hotel association, Northern Thailand sector. Within the

32 hotels, the interviews were conducted with 29 owners and 5 managers. Thus, there were

three hotels in which the interview occurred only with managers of the hotels. Although this

research focuses on owners’ views, the researcher decided to conduct the interviews with the

managers because they could provide data about the owners e.g. the quote below

demonstrates the response from one of the managers. The manager explained why the owner

established a boutique hotel:

“It was because the owner has land here. This land used to be his house. There is available

space. So he changed the house to this hotel. It is also because his family is here. Father and

mother of the owner also live here.” (I32, 5-7)

There were two hotels in which the researcher interviewed both owner and manager. The data

from managers related to the research questions was considered. Each hotel is categorised as

a respondent. Therefore, interviews were conducted with a total of 32 respondents.

4.6.6. QUALITY OF QUALITATIVE RESEARCH

Researchers are concerned with how to assess the quality of qualitative research. This is due

to the disaffection with the traditional framework of validity and reliability applied to

quantitative research. Although qualitative researchers recognise the important considerations

of validity and quality, it is stated that qualitative research must be judged by criteria which

are appropriate to it (Smith, 2003). The use of irrelevant quality concepts to qualitative

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research causes unnecessary limitations and can lead to false conclusions of social

phenomena (Stenbacka, 2001). Therefore, the traditional concept of research quality is

replaced by the alternative criteria to ensure the quality of qualitative research such as in the

article by Stenbacka (2001). These criteria are applied to assure and enhance the quality of

this research.

This study initially investigated entrepreneurship through the previous studies of

entrepreneurial motivation, business growth and boutique hotel. Through this process,

entrepreneurs are identified as a focal of the study. Its purpose is to generate an insight into

entrepreneurship through the study of entrepreneurial motivation, business growth and

boutique hotels from the perspective of entrepreneurs. Unstructured interviews were

conducted with the entrepreneurs of boutique hotel in Northern Thailand. The interview

guide was prepared and so the research emphasises the research’s key issues. As it was also

important to explore the respondents’ perspective, thus the interviews were flexible and

provided the respondents’ opportunity to freely state their view. According to Stenbacka

(2001) qualitative research verifies the research validity by ensuring that the respondents

chosen are part of the problem area and the respondents are given the opportunity to speak

freely according to their knowledge structures.

This research adopted non-probability sampling using the method of snowballing. The

sampling was established in order to acquire the respondents within the scope of the research.

This sampling generated in-depth of data and resulted in a rich description of data (Decrop,

2004). According to Stenbacka (2001), qualitative research achieves analytical generalisation

by declaring strategic choice of respondents relevant to the study. Moreover, the research

generates other researchers the opportunities to appraise findings and also the extent to which

they could be transferred to other settings (Decrop, 2004). The context of the study (see

section 1.3) and respondents (see section 4.6.5) is discussed and presented thoroughly. The

findings in Chapter Five are described in detail with the demonstration of interview

quotations.

Finally, to produce qualitative research with quality, the researcher must adopt a systematic

and careful description of the whole process of interaction with a reality understudy

(Stenbacka, 2001). This research thoroughly elaborates the methodological procedure in this

chapter. To emphasise, it states how the research was designed and conducted as clearly as

possible. Moreover, each methodological step was given with clarified justification. Overall

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the research highlights the importance of establishing the quality of the qualitative research.

This needs to be explicit to show that the issue has not been overlooked.

4.6.7. RESEARCH ETHICAL ISSUES

Researchers cannot focus only on the quality of the knowledge they are producing. They

must also consider the morality of our actions as qualitative researchers in relation to the

people whose lives we are studying, to colleagues and to those who sponsor their work (Miles

and Huberman, 1994). Researchers have to deal with ethical dilemmas evoked at every stage

of the research (Shaw, 2008). The most important issues concerning ethical conduct are

consent and confidentiality (Ryen, 2011). In this research, the process in requesting an

interview by telephone was made along with the clarified explanation of the purpose of the

research. The respondents were asked if they have any further inquiries. Then the researchers

verbally requested the respondents’ consent to participating in the interview. This was done

before the researcher processed the interview appointment. Furthermore, the researcher sent

the interview request letter that stated clearly the main questions which would be asked in the

interview. This was done in advance via email. The letter also provided the researcher’s

name, contact number and email address. It was emphasised that the respondents could

contact the researcher if further information was needed. The researcher recognised that the

respondents need to be asked in advance whether they are prepared to take part and know in

detail what it will involve (Robson, 2011). During the interview, the researcher once again

explained clearly the purpose of the research and introduced the key interview questions.

Then the researcher asked if the respondents were still willing to participate in this research

(Berg and Lune, 2012). After the respondents gave their verbal consent, the researcher

requested the respondents’ permission to record the interview. To clarify, this process was

conducted thus the respondents were aware that they were now part of the research. It was

necessary that the respondents recognised their right to be informed about the research and

their right to withdraw at any time (Ryen, 2011). Furthermore, the researcher provided the

respondents opportunities to negotiate and renegotiate whether they were willing to

participate in the research (Miles and Huberman, 1994). This process was similarly

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conducted with the telephone interviews. All consent was given verbally. Since the researcher

conducted tape-recorded in-depth interviews, affirmative responses and completed interviews

served the purpose of consent (Berg and Lune, 2012).

In this research, the interview request letter clearly states that the data obtained in this study

would be kept confidential and used only for this research (Appendix 2). To emphasise, the

letter was sent via email and also personally handed to the respondents by the researcher on

the interview date. During the interview, the respondents were informed once again about the

confidentiality of the data (Miles and Huberman, 1994). The researcher was aware that she

had the obligation to protect the participants’ identity, the place and the location of the

research (Ryen, 2011). Negative consequences may result if respondents are identified in a

report or publication (Robson, 2011). Therefore, any element that might indicate the

respondents’ identities was removed from the research record (Berg and Lune, 2012). This

thesis does not include the respondents’ information such as telephone number and email.

When reporting the findings, the data which risked revealing the identity of the respondents

such as their names or other specific names mentioned by them were replaced by a

pseudonym (Bryman, 2008; Robson, 2011; Berg and Lune, 2012). The findings do not state

specific names of places and locations, they are instead generally described e.g. “name of the

location” is replaced by “this location”. Finally, the researcher makes certain that all the data

were kept in a secure computer file and were only used for this research study.

4.6.8. EARLY STAGE OF RESEARCH JOURNEY

Before the data collection, this section describes issues and challenges the research faced

during the initial stages of the research. The experience along this initial stage assisted the

researcher in deciding on the appropriate research design for the main study.

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Before entering the PhD process, the research was a lecturer in Business Administration

Faculty, Management Department in Chiang Mai University. She was in charge of lecturing

in Introduction to Business, Principle of Management, Office Management and Hotel

Management. However, the researcher did not pay much attention at the time to the area of

entrepreneurship.

At the early stages of the research, the researcher viewed entrepreneurial motivations as

objective entities. Previous articles were read only to find motivation factors and to list them

in a table. It was expected that after listing all the factors, the researcher could create a

framework that gathered all these motivation factors together. Then she could create a survey

to investigate which factors trigger the creation of boutique hotels in Northern Thailand.

Nevertheless, many questions were derived during the process in discovering these

motivation factors e.g. why were there so many diversified motivation factors? Later it was

discovered that the previous research adopted a different discipline in approaching the issue.

Thus, the results were different. Why did some factors seem very similar, yet they were

explained differently e.g. Greenberger and Sexton (1988) believed that people in society were

found to be supporters of entrepreneurship. Hamilton and Harper (1994) believed that

individuals were pushed into entrepreneurship because they had lost recognition from people

in society. Bosma et al. (2011) believed that some people in society were role models and

encouraged individuals to become entrepreneurs. According to these diversified motivational

factors, the researcher recognised that it was impossible to gather all the factors, create a

framework that included all the factors, or test all of the factors using a survey.

The researcher started to consider why there were many and diversified entrepreneurial

motivations. Several reasons were revealed. First, the setting where the previous research was

conducted was different. Entrepreneurs in different settings generated different results.

Second, researchers conducted the research with diversified samples. Entrepreneurs in

different sectors generated different results. Third, researchers approached entrepreneurial

motivation from different perspectives that produced different results. Fourth, researchers

used different methodological approaches that lead to different explanations of

entrepreneurial motivations. As a result the researcher realised that she could no longer view

entrepreneurial motivation as objective entities. The results of entrepreneurial motivations

could be connected with everything that related to it.

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According to this notion, the researcher’s view toward entrepreneurship changed. She

recognised that knowledge about entrepreneurs must be formed by considering the

surrounding environment. These environmental factors obviously impact entrepreneurship

and generate an explanation for its existence. Therefore, to understand entrepreneurship, the

researcher needs to understand the life of entrepreneurs. She recognised that only discovering

the motivational factors was not enough. Therefore, this view generated the researcher’s

stance toward the knowledge of entrepreneurship and the journey towards discovering

entrepreneurial motivation.

4.7. DATA COLLECTION

Before conducting field research, some background information about the respondents and

their hotels was acquired. Collecting the data was carried when the researcher was still in

England and was obtained from the Internet. The data sources were from hotel websites and

other websites such as newspaper and magazine websites. With the help of the researcher’s

friends and family, some information was gathered from books and magazines sent from

Thailand. Nevertheless, the information was very limited. This was especially true of the data

about the owners of boutique hotels as none was found. The seeking of the initial data was

continually carried out in Thailand. However, the data about boutique hotel owners was still

difficult to find. Therefore, the initial data about boutique hotels contained only information

of their history, number of rooms, prices, hotels’ address, email address and telephone

numbers. It was only before the interview date that some respondents’ information was

obtained with the assistance of the researcher’s work colleagues, friends, and family. Finally,

the data formed the initial list of the boutique hotel background information (Appendix 1).

The researcher used the data to make initial contact with the respondents e.g. hotel telephone

numbers were used to contact owners of boutique hotels. Moreover, acquiring initial

information about the respondents and their hotels prepared the researcher for the interview.

It helped to form an initial understanding of the respondents and their hotel, thus the

researcher could connect more closely with the interviewees (Arksey and Knight, 1999). The

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familiarity with the setting also helped to understand the respondents’ replies (Bryman and

Bell, 2007).

4.7.1. THE PRELIMINARY STUDY

The purpose of the preliminary study was a stepping stone stage that could generate an initial

understanding about entrepreneurial motivation, business growth and boutique hotels. It was

conducted during two weeks, in August and before the main study. The first three interviews

of 32 were part of the preliminary study.

The researcher studied previous research and carefully categorised the entrepreneurial

motivations. Nevertheless the respondents’ answers provided diversified examples of

entrepreneurial motivations. Moreover, the motivations were accordingly blended with the

respondents’ story. Therefore, it appeared that the identification of a single motivation

without further explanation was impossible.

The preliminary studies revealed an unexpected answer. The hotels of the respondents

appeared on the Chiang Mai Boutique Hotels website (Chiang Mai Boutique Hotels, 2012)

and/or Thailand Boutique Awards (Thailand Boutique Awards, 2012) and were recognised by

other people as boutique hotels. However, some of the respondents refused to call their hotel

a boutique hotel. Consequently, the third question from the initial list of interview questions:

“How do you see your hotel as a boutique hotel?” needed to be modified (see section 4.6.3).

The researcher needed to ask open-ended questions to encourage the respondents to provide a

clarified explanation of the answers (Arksey and Knight, 1999). However, some open-ended

questions do not always give any insight to the answers. Despite having the interview guide,

the lack of experience in interviewing caused the researcher to occasionally use “what” in

interview questions e.g. “What was your motivation in starting this boutique hotel?” This

type of question produced only short answers. Several times the researcher was faced with

silence because she could not think of further questions. Therefore, the researcher needed to

avoid “what” questions. It was necessary for the researcher to ask questions which would

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allow the respondent to express freely e.g.: “Please tell me about how you started a boutique

hotel in Northern Thailand?” And “Please explain what encouraged you to do this?”

Preliminary studies were crucial because they provided the researcher opportunities to

practice interviewing. There were problems with initially interviews. First, the researcher

frequently looked at the interview guide. The respondents felt ignored and they stopped

telling their stories. Second, the questions were not asked in order and some of the

respondents’ answers included more than one theme. The researcher was too concerned with

the interview questions and covering all the research themes. Lacking concentration on the

respondents’ answer, the researcher found that it was difficult to generate probe questions in

order to generate an insight into the respondents’ answers (Bryman, 2008). Overall, it was

difficult to concentrate on the key themes, interview questions and the respondents’ answers

at the same time. To solve the problem, the research questions and objectives needed to be

reviewed so that the research felt familiar with them. The researcher needed to concentrate on

the respondents’ stories and quickly respond to the answer which related to the research key

themes. She needed to promptly improvise questions that lead to clarification of answers.

Third, the researcher had a problem with the digital recorder. She learned that it was

necessary to prepare two recorders instead of one to record the interviews.

Despite the difficulties in conducting preliminary studies, it was decided to include these

interviews in the data analysis. Firstly, the respondents were asked all the main interview

questions. Secondly, although the researcher was faced with unexpected answers, she

managed to improvise the questions that permitted a clarified explanation of the responses.

Finally and importantly the interviews contained responses that could be analysed and

generated an insight into entrepreneurship.

4.7.2. THE MAIN STUDY

After to the preliminary study, the researcher decided to adopt the unstructured interview as

the research method. Firstly, this research required responses which generated an insight into

research key themes which were entrepreneurial motivation, business growth and boutique

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hotels. It was found from preliminary studies that unstructured interviews provided answers

which would accomplish the research objectives. Moreover, to ensure that the interview

generated answers to research question and objectives, two interview questions were added

(see section 4.6.3). Secondly, to generate an insight into the research key themes, the

respondents must be allowed to express their views freely. This had to be completed by

permitting the respondents to tell their stories. According to this, pre-list questions could limit

the views of the respondents. In addition, they could interrupt the respondents’ ideas if the

next questions did not follow from the previous conversation. In this study, probing questions

were more useful than pre-list questions as they allowed in-depth investigation of the

respondents’ specific views. Furthermore, with probing questions the respondents felt that the

researcher was listening and responding to their answers. Overall, the researcher was

confident that the unstructured interview would accomplish the research objectives.

In total, the researcher conducted face-to-face interviews with 26 respondents and telephone

interviews with 3 respondents. The main study was conducted between September and the

beginning of November 2012. During this time, it was low season, since Thailand’s low

season runs from May to October every year (Thailand Holiday Guide, 2013). It was

predicted that it would be an appropriate period to request interviews with the owners.

Nevertheless, some boutique hotels refused to participate in the interviews. Unexpectedly,

one of the reasons was that it was an inconvenient time for owners and the hotels were still

occupied with many guests.

The majority of the interviews occurred in the focal province of Northern Thailand, Chiang

Mai, (27 respondents). This is where the majority of the boutique hotels, according to the

initial list of boutique hotels (Appendix 1), are situated. The interviews also included hotels

from other provinces. There were three respondents from Mea Hong Son which is situated

approximately three hours’ from Chiang Mai by car and there were two respondents from

Pisanulok which is approximately five hours’ from Chiang Mai by car. The researcher

travelled by car with a friend to the interview locations. Although the researcher normally

conducted one interview per day, due to time and money constraints and for the respondents’

convenience, the researcher occasionally conducted a maximum of two interviews in a day.

Almost all of the interviews were conducted in the respondents’ hotels. This generated an

opportunity to gain an insight in terms of experiencing actual context of the entrepreneurship.

It was discovered that many of the hotels were located in very small alleys. Most of the

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investigated hotels were quiet although the respondents stated that their hotels were full. The

researcher noticed few employees during the interview as well as groups of constructors in

two hotels. The hotels were building more rooms. The researcher listened to Northern Thai

music while she walked through a hotel’s corridor. The music was intended to calm guests

when they had to walk alone. While the conversations were recorded on the digital records,

other information such as the context was written up in a notebook.

All of the interviews conducted in this research (32 interviews) lasted approximately half an

hour to one hour. The shortest interview lasted only 10 minutes. This interview was one of

the early interviews. At the moment, the researcher was still diffident with the interview

process and was unable to improvise probing questions promptly. During the interview, the

respondent spoke very fast. He read each interview questions from the letter request for an

interview. Then he promptly gave his answers. He was very precise with his answers. It was

short, yet he explained the answers with stories. It might be assumed that he not only

prepared for the interview, he was also certain of his answers. The respondent provided the

researcher the opportunity to ask him further questions. He replied quickly and the answers

were very short and precise. At the end of the interview, the respondent provided the

researcher an opportunity to ask further questions via his private email. Few of the interviews

lasted more than two hours. It usually occurred when the respondents gave a large amount of

detail about life history, family, work and personal interests. Some of the respondents

escorted the researcher around their hotel during the interview. They enjoyed talking about

the hotel’s architecture, decoration and history. A respondent provided a very long history

about how he built the hotel. He further explained how building the hotel led him to build his

own house. At the end of the interview, the researcher and her friend were escorted to the

respondent’ new house located near the hotel.

In order to gain robust data, the researcher tried to be familiar with the respondents and to

build trust. Before asking interview questions, the researcher managed a short conversation

with the respondents and began every interview by introducing herself. She provided

information about her PhD study including her past career. She mentioned her relationship

with the person who introduced the researcher to the respondents. This short conversation

created an informal atmosphere and relaxed both the researcher and the respondents.

Nevertheless, there were differences between interviewing the owners and the managers.

Establishing an informal relationship with the owners was easier than with the managers. The

interviews with the owners usually occurred at a round table and the respondents sat beside

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the researcher. The owners enjoyed talking with the researcher about friends and family.

They were also interested in the researcher’s life as an overseas student. The short

conversations went very well. On the other hand, the researcher felt that it was difficult to

build trust with the managers. The short conversation before the interview was formal.

Typically it occurred at the managers’ rectangle desk and researcher sat opposite the

managers. Several questions were asked about terminology e.g., what is a boutique hotel?

What is the difference between a small hotel and a boutique hotel? What is the hospitality

industry? What business is included in the hospitality industry? The managers were interested

in the researcher’s experience in the industry more than her education degree and her career.

The managers explained how experiences in the industry could help the researcher to

understand the responses. Thus, they told the researcher their experiences. At this stage, the

researcher felt that it was necessary to pay attention to their story. After the short

conversation, the managers asked the researcher to begin with the first interview question.

The managers were willing to provide the researcher with their information. The interviews

went well.

The interview questions were not asked in order. Some of the respondents started by giving

responses promptly after the researcher finished introducing the research purposes. If the

respondents were interested in, for example, boutique hotels, they began the conversation

with the topic. A new theme would be introduced when the respondents finished their

previous responses and were ready to move forward. During the interview, probing questions

were generated with care so as not to interrupt the respondents while they were giving

responses. Thus, some of the questions were written in a notebook and asked after the

respondents finished their talk. To generate a freely flowing conversation, the interview

needed to be flexible.

At the end of the research, the researcher conducted interviews with 32 hotels. The

preliminary studies were included. The interviews contained with 29 owners and 5 managers.

The beginning of the research was difficult as it was hard to acquire an interview with

respondents. The researcher felt unaccustomed with the initially interviews. Nevertheless

while the field research continued, the conducting of interviews improved. The researcher

was able to acquire more interview participants. This was from the respondents’

recommendation and the researchers’ work colleagues, friends and family. The interview

conversations became more natural. The researcher was able to recognise key responses and

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promptly probe for more explanation. The interviews were conducted until the data were

saturated.

4.8. DATA ANALYSIS

In order to avoid an overwhelming task that could demotivate the researcher and reduce the

quality of the work produced, the data were organised during the field research (Miles and

Huberman, 1994). The processes of requesting interview appointments, following up the

requests; making appointments and interviewing the respondents was not linear. It was

important for the researcher always to update the contact status sheet (Appendix 4). Thus she

could appropriately follow up every contact with the respondents. The contact status sheet

and the initial list of boutique hotels assisted in developing the contact summary sheet

(Appendix 5). This contains background information of firstly the boutique hotels (Appendix

5.1) and secondly the respondents (Appendix 5.2). The researcher used a notebook to

summarise key issues from each interview and also contains information which could not be

recorded by the digital recorders, such as details of the interview context. Promptly after each

interview, the interview records were converted to computer files and were saved in a

computer folder.

4.8.1. TRANSCRIBING THE DATA

Heath (2011) states that transcribing is an analytic process which helps keep intact the

interviewees’ words. It allows the researcher to become familiar with the data and more

aware of emerging themes (Bryman, 2008). Arksey and Knight (1999) explain that

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transcribing can be done at many levels of detail e.g. in survey research, transcription is rare

and it is better to talk of data capture. Transcription, which includes grunts, and words like er,

well etc., may be important to linguistics research or discourse analysis. For some qualitative

research, transcribing which summarises key points is sufficient for some purposes. The

authors state that the level of transcription will depend on the research purpose. Robson

(2011) agrees and says that whether or not the researcher makes a full transcript of the tape

depends on the way in which he/she proposes to analyse the data. Likewise, Heath (2011)

believes that the analytic standpoint is important as it conveys how the data will be collected,

prepared and analysed.

In this research, the data from tape recordings were fully transcribed by the researcher. The

transcribing started when the researcher conducted the interviews and lasted until January

2013. The data were transcribed using the Thai language, which was the language used in the

interviews and is the native language of the researcher and the respondents. Some interviews

were interrupted by noise as the interviews took place in an open area of the hotels. Thus, the

researcher needed to carefully transcribe the data and revised it to ensure the accuracy of the

interview words. The researcher listened to the interview records at least twice. While

transcribing, the researcher became familiar with the interview data. Every half an hour of an

interview recorded needed approximately four hours for transcription. Appendix 6 provides

an example of a transcribed interview. In this research, three interviews were not digitally

recorded. Promptly after each of these interviews, the researcher made notes to summarise all

the key points that were picked up from the interviews. The process of transcribing prepared

both the data and the researcher for the next step of data analysis.

4.8.2. ANALYSING THE DATA

In order to generate answers to the research questions, thematic analysis was employed for

this study. This is a generic approach to the analysis of qualitative data (Gomm, 2008;

Robson, 2011). It allows the researcher to captures interesting and important evidence that

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relates to the research questions (Robson, 2011). It differentiates, combines data including

generating reflection on the information (Miles and Huberman, 1994). The analysis results in

identifying and describing implicit and explicit ideas within the data (Guest et al., 2012).

Despite similar data, a different analysis could lead to the creation of different themes

(Gomm, 2008). Importantly, the analysis must generate a clarified description of the analytic

process to demonstrate the quality of the analysis and how the data are given a particular

interpretation (Robson, 2011).

In this research, after the data were transcribed, there were more than three hundred pages of

transcripts. It was decided to employ computer-assisted qualitative data analysis software or

CAQDAS which could facilitate the analysis of the data (Bryman, 2008). NVivo10 was

selected. The program allowed the researcher to work with the large amount of the data and

with the transcripts that were typed in Thai. It assisted in coding and retrieving themes

(Edhlund and McDougall, 2013). However, the program does not automatically do these

things, the researcher needs to interpret code and retrieve the data (Bryman, 2008). Before the

actual analysis, the researcher attended a two-day course on how to use the program.

In the first stage, the researcher started by importing all the transcripts into the program.

Since there was a large amount of data, it was decided to categorise the data according to the

research questions. Thus, the researcher could recognise which responses were answers to

which research questions. The first set of themes was transformed from the research

questions e.g. RQ1: What is entrepreneurial motivation in creating and operating boutique

hotels in Northern Thailand? Hence, the first theme is entrepreneurial motivation. The first

set of themes was composed of three themes. They were entrepreneurial motivation, business

growth and boutique hotels. Using the program, the researcher went through the data and

marked the text related to the themes. Each theme gathered many sequences of text. The

program allowed the researcher to retrieve all the sequences of text that were marked. It

showed the sequences of text in each theme. Table 4.3 provides an example of the data after

they were categorised according to the themes. During this process, it was recognised that a

sequence of text could be categorised into more than a theme. This was because it provided

answers to more than a research question.

Table 4.8: An Example of Data Analysis in First Stage

Theme:

Entrepreneurial

Interview 1: Reference 1: a sequence of text

Reference 2 : a sequence of text

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Motivation (MOV)

Reference 3 : a sequence of text

Interview 2: Reference 4: a sequence of text

Reference 5 : a sequence of text

Theme: Business

Growth (GRW)

Interview 1: Reference 1: a sequence of text

Reference 2 : a sequence of text

Interview 2: Reference 3: a sequence of text

Reference 4: a sequence of text

Theme: Boutique

Hotel (BHC)

Interview 1: Reference 1: a sequence of text

Reference 2 : a sequence of text

Interview 2: Reference 3: a sequence of text

Reference 4: a sequence of text

In the second stage, after all the data were coded according to the first set of themes, they

were printed out. The researcher carefully read through all the text. This was to be familiar

with the data. Then within a theme, the data were categorised again. The purpose was to find

particular answers to the research questions. The researcher started by reading through all the

text for the second time looking for themes which would present the sequences of text

(Gomm, 2008). The text within a first set of theme was broken down into several themes e.g.

Entrepreneurial Motivation, there were a generation of new themes, such as Home, Location,

Retirement, Education and Experiences, Culture and Confident. The researcher generated

names of themes which would directly describe groups of sequences of text. Some of these

themes were from the previous literature, such as Confident, Family and Retirement and some

were emerging themes for example Having related business and Welcome friends and family.

The text was first categorised manually. The data were printed out from the program. The

researcher wrote down themes at the end of each sequence of text. Then she used the program

to mark all the sequences of text according to the second set of themes. At this stage, during

the course of analysis, the themes were generated, regenerated and modified many times

(Robson, 2011). The data were marked and remarked many times and this stage took more

than a month. Finally several themes were generated. The program assisted in calculating the

number of interviews and the number of sequence of text that relate to a theme. Figure 4.2

demonstrates an example of the second set of themes in NVivo10.

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Figure 4.2: An Example of the Second Set of Themes in NVivo10

In stage three, after all the sequences of text were marked according to the second set of

themes, the researcher decided to condense these themes. It was found that some themes

contained only few interviews and sequences of text. These themes were removed. Some

themes could be categorised under a similar theme and were therefore merged e.g. the second

set of themes: Retirement and Welcome friends and family was merged into a new theme:

Lifestyle. At this stage, a third set of themes was created. In the process of condensing the

themes, the researcher needed to be careful about the themes that were merged and the

generating of new themes. The researcher had to make notes to clarify the source of the third

set of themes e.g. the entrepreneurial motivation theme: Lifestyle was composed of

119

Retirement and Welcome friends and family. The researcher also gave each theme its own

definition e.g. the entrepreneurial motivation theme: Lifestyle was defined as entrepreneurial

lifestyle factors that drive entrepreneurs to create and operate a boutique hotel. Due to the

generation of new themes, the data needed to be marked again according to the third set of

themes. In this stage, the researcher recognised that the new themes were more complex than

the previous ones, since they provided clarification of each sequence of text. Hence, the

researcher decided to transform the themes into codes. Coding is the starting point for most

forms of qualitative data analysis (Bryman, 2008). They link raw data and mark for later

analysis (Guest et al., 2012). To code, for example, a code would be composed of three parts,

for example MCOB-ML-FM. The first part of the code called the main theme identifies

which research question this sequence of text answers, for example, MCOB, would stand for

Motivation to Create and Operate Boutique hotel. The second part called the master code,

identifies particular answer to the research questions, for example, MCOB-ML, here –ML

was added and it stands for Motivate by Lifestyle. Figure 4.3 demonstrates a part of the third

stage of analysis. The third part of code was added when the data were more complex. It

provided a clearer explanation to sequences of text. The third part of the code, called the sub-

code, identifies a further explanation to a particular answer. e.g., MCOB-ML-FM, here –FM

was added and it was stand for Family Matter. This stage also took more than a month.

Figure 4.3: An Example of the Third Stage in Analysis

120

In stage four, after all the sequences of text were marked according to the third set of themes

(codes), the researcher recognised that she needed to generate further understanding of the

data which were coded. At this stage, the researcher decided to leave NVivo10. Although the

program had a function called memos that allowed the researcher to insert ideas and link

them to sequences of text, these memos were located in a separated window. It was difficult

to switch from one window to another and to see the linkage between a sequence of text and

its memo. Thus, the researcher decided to create a table instead whose purpose was to

summarise the meaning of the sequences of text. These were transformed into the

researcher’s own written text. It allowed the researcher to be familiar with the data and

generate a deeper understanding of the respondents’ responses. Examples of the table are

shown in table 4.4: An example of analysis table “Summarise the quote meaning”. More

examples are presented in Appendix 8.

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Table 4.9: An Example of Analysis Table “Summarise the Quote Meaning”

Code Interview Quotes Translated Version Summary of

Quotes

MCOB-ML-FM เจาของ/ มนถกจบโยนมา จรงๆ ตอนแรกพทำา กอสรางคะ ไปทำากอสรางมา แลวจรงๆ แลวอยางท

พวา บคลากรในกงสของเราเองมนไมมใคร อม แลว ก พกำาลงจะโตในสายกอสราง คะพทำาอาคาร

พาณชยขายอะไรอยางน แลวก พอมาถงทนแลวงบ ประมาณในการ renovate มนคอนขางสงถาเราจาง

คลายๆวาเราจะจาง GM มาคมเหรอ เราจะจางใคร มาคมเนยะ เราคงจะตองโดนคาโสหยไมตำากวา 10

ลาน คะเพราะนนเรากเลยคดวา ทกคนกลงมตแลว วา ใหพมาดเหอะ ใหพมาดเหอะ แลวกตาย ใหพมาด

กอสรางอยางเดยวมนกจบ แตกลายเปนวามาดทก เรองเลย แลวมนกเลย ตดคลกกนอยตรงน โดยท

ผลสดทายไป กเหมอนกบเรารกทนไปดวย เพราะวา เรา เราสรางมนมากบมออะนะคะ

“I was told to do this. Actually I used

to be a contractor. As I said, we don’t

have anybody in our family to do this.

I was making progress in the

construction field. I did commercial

building. For this hotel, the renovation

budget is quite high. If we hire

professional to do it, we might have to

pay more than 10 million (baht). So

everyone in the family said I had to do

it. If I did only the renovation that

would be ok, but actually I did

everything. I am stuck here. Finally I

fell in love with it because I built it

myself.” (I22, 152-158)

She has to

manage this

hotel because

her family told

her to do it.

GEP-EMG-LDD เจาของ/ ตอเตมนอนาคต กคงขนมาเปน เปน เออ

(พยกหนา) เพราะเคยไปท ท ไปหลวงพระบางเนอะ

เออ กไปชนชอบแนวคดตรงนน คอปกตแลวเวลา

ไปไหนกจะไปกนเปน เปน ทมในกลมครอบครว ม

นาๆ มอะไรไปดวย แลวก เออ อยางนกนาจะดเนอะ

อะไรอยางเนยะคะ กคอทำาใหเปนความฝนไวกคอ

เออ ถาหากวามนจะตอง..นาจะรองรบลกคาไดมาก

ขน เปนไรทมนครบวงจรมากขน อยางเรานาจะทำาส

ไตรอยางนนนะ อะไรอยางเนยะคะ แลวก ก แนวคด

มนจนกน ป ปเออ ไปมประสบการณรวมกน ในขณะ

ทเราไป ไป เออ ไปทองเทยว ไปไรเงยะ ทกอยางนก

อาศยทเปนคนดมากรกจำา ไปไหนกเออ ชอบในจด

ไหนกอะไรอยางเนยะคะ กจะคยกน

"My family and I have been to Laos

together. We love the concept of the

place. Normally when I travel, I go

with my family. We do things as a

team. Members of the family include

aunts. It is our dream (the business).

We want to have more customers,

more facilities. We want to do it. We

agree on the concept. We share the

same experiences. The experiences are

from when we travel together." (I16,

135-142)

The owner talks

about

experiences

abroad and how

she likes to

decorate her

hotel.

BHC-SBH-S เจาของ/ จรงๆแลวเราไมไดเปน Boutique หรอก

เราไมไดตงใจจะเปน Boutique แลวกมคนเรยกวา

เปน Boutique แลวกมคนมาชวน เนองจากวา ไอ

Chiang Mai Boutique เนยะ ไซสเนยะ กเพอนกน

ทงนนอะ มานงคยตวงกอฟเดยวกน อะไรอยางเง

ยะ กออไปซกเลยชวนกนอะไรอยางเงยะคะ เราก

บอกวาเอเราไมนาใชนะ เคากบอกวาใช เพราะวาม

ลกษณะพเศษ ไมใหญ เคากวาไป เราก OK กไมม

ปญหาอะไรทจะใหเราไป แตเรากไมได... ไมไดทำาอะไร

"Actually my hotel is not a boutique

hotel. People call it a boutique hotel.

The people in boutique hotel group are

actually my friends. We do friend chat

and play golf together. They invite me

in. So I am in the group. I don't think

my hotel is a boutique hotel. But my

friends said it is a boutique hotel. So I

said ok. I am in the group." (I12, 105-

114)

The owner said

the members of

boutique hotel

group told her

that her hotel is

boutique. They

said her hotel is

not big so it is a

boutique hotel.

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เลย ไมไดทำาอะไรกบกลมนเลยไง เพราะวาเรากถอวา

เอ เขากคอยขางทจะ... ถาวา Boutique เนยะ มนก

นา...วาของเคานาจะตรงกวา นเรากเขาไป เรากยง

เขนๆอยนะวาเรา เอเรา แตวาเนองจากวาเคาเปนคน

ชวนเราเขาไปเอง เคาบอกวาใช

After the previous process, the researcher still struggled in finalising the final codes that

could answer the research questions. Nevertheless, she had gained deeper understanding of

the data from the previous stage. She was able to recognise some significant findings from

the data. The researcher decided to categorise the data again using paper and scissors. This

was because the interview transcripts which were used for coding were written in the Thai

language, and this caused problems with Nvivo10. For example, the program could not gather

or sum up significant words or sentences which could lead to the findings. The text segments

in Thai was different from English, thus using the program caused the loss of important data.

In addition, the researcher felt uncomfortable reading from a computer screen, and so could

not concentrate. To comprehend the whole picture, the researcher chose to corroborate the

data manually. The researcher began by listing all the significant findings. They were typed,

printed out and cut up using scissors. A piece of paper contained a significant finding. Then

the researcher reorganised these findings. Pieces of paper were mixed. The researcher started

to read each piece of paper. She categorised the pieces of papers by grouping the findings that

were similar. Groups were created by the researcher placing each paper on a paper board. The

findings were grouped and regrouped several times. Figure 4.4 demonstrates how the data

were categorised using paper and scissors. This process took more than two weeks when all

the data were categorised and grouped. Finally, the analysis enabled the researcher to

generate the most insightful answers to the research questions. It formed the main research

findings that were supported by evidences. The main findings were turned into master codes.

Evidence which supported the main findings was turned into sub-codes. Appendix 7 shows

the final master codes and sub-codes of this research. In order to organise the findings to

present in the next chapter, the researcher decided to adopt meta codes that assisted in

grouping master codes which could be linked together.

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Figure 4.4: Data Categorised Using Paper and Scissors

To conclude, the analysis established answers to the research questions in the form of

findings that were categorised by the adopting meta codes, master codes and sub-codes. A

meta code was used to group master codes which could be categorised under the same meta

code (theme). A master code was composed of sub-codes that provided evidence to support

124

a master code. The summarise of the meta codes and its master codes is presented in section

5.3. The findings are reported in Chapter Five.

4.9. CHAPTER CONCLUSION

The chapter is explicit that entrepreneurship is clarified if it is viewed as human beings.

Entrepreneurs are social actors whose actions are shaped by social condition. While the

entrepreneurs interpret the world around them, they form reality and give meaning to

entrepreneurship. The methodology of this research is selected and designed to capture the

insight and complex views of entrepreneurs toward entrepreneurship. To clarify, this study

adopted an inductive approach employing qualitative research. A specific group of

entrepreneurs was selected as key informants in this research that aims to generate a clarified

explanation of entrepreneurship in a particular context. The research sampling determinant

was designed, selected and clearly explained to ensure that the responses generate answers to

the research questions. Unstructured interviews which allowed the respondents to express

their views freely and provide a rich description were carried out. The preliminary data was

conducted to verify the research design process and ensure that the carrying of field research

could successfully accomplish the research objectives. Finally, thematic analysis was

employed to generate the findings of the research. More importantly, the analysis process is

explained as clearly as possible in this chapter to ensure research quality.

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CHAPTER FIVE: FINDINGS

5.1. INTRODUCTION

The purpose of this chapter is to report the research findings that aim to answer the following

research objectives:

(OJ1) To identify and gain an insight into the motivation of entrepreneurs in

boutique hotels in Northern Thailand

(OJ2) To identify and gain an insight into the business growth of boutique hotels in

Northern Thailand

(OJ3) To compile and synthesise the background information about the boutique

hotels

In this chapter, biographical information about the respondents is reported in the first section.

The following section reveals the entrepreneurial motivations of the respondents and the

business growth of boutique hotels. Finally, the respondents’ views about boutique hotels are

revealed.

5.2. THE RESPONDENTS’ BIOGRAPHICAL INFORMATION

126

This section reveals biographical information of 30 respondents. This information for the

other two respondents was not revealed due to limitations imposed by managers. Also it does

not include the biographical information about the managers because the focus of the

research was on the owners of boutique hotels.

There was almost an equal mixture of gender with 16 male respondents and 14 female

respondents. Some of the boutique hotels were run by couples but only either the husband or

the wife was interviewed. There were more local respondents than non-local respondents: 17

local and 13 non-local respondents. Local respondents are people who were born in Northern

Thailand while non-local respondents were originally from other regions.

The majority of the respondents had a university degree. Their university backgrounds are

diverse with only one respondent having graduated in the hospitality field, majoring in

restaurant management. Nine respondents had their university degree in business. Other

respondents had their degree in a range of subjects, such as, politics, economics, psychology,

and pharmacology. Twenty-six respondents did not have previous experience in the hotel

business; they did not graduate in the field nor had they owned or worked in a hotel before.

Four respondents had experience in hotel operation before owning a boutique hotel in

Northern Thailand; they had previously operated a hotel or had been trained in a hotel. Two

respondents decided to take a short hotel course after starting to operate their boutique hotel.

The majority of the respondents had previous work experience. Sixteen respondents had

operated other businesses and 11 respondents had engaged in other employment. Their

previous background included working as contractors, real estate dealers, engineers, and

architects. At the time of the survey, more than half of the respondents operated another

business with their boutique hotel; for example, some respondents were still engaged in their

previous employment which was their main source of income. Only three respondents had

just graduated from university. Further information on the respondents is displayed in table

5.1.

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Table 5.10: The Background Information of the Respondents

No. Respondents Gender Age Birth Place Operation Year Type of Hotel

1 I1 Female 40-49 Non-Local 2 Home Stay2 I2 Male 40-49 Non-Local 8 Local hotel3 I3 Male 40-49 Non-Local 3 Resort in Town4 I4 Male 50-59 Local 3 Boutique hotel5 I5 Male 40-49 Non-Local 7 Boutique hotel6 I6 Male 40-49 Non-Local 6 HIP Hotel7 I7 Male 30-39 Local 8 Boutique hotel8 I8 Male 50-59 Local 24 Lifestyle hotel9 I9 Male 50-59 Non-Local 2 Boutique resort

10 I10 Male 40-49 Non-Local 3 Boutique hotel11 I11 Female 30-39 Local 7 B&B12 I12 Female 50-59 Local 4 B&B13 I13 Female 30-39 Non-Local 5 Boutique hotel14 I14 Female 40-49 Local 3 Boutique hotel15 I15 Male 30-39 Non-Local 3 Boutique hotel16 I16 Female 50-59 Local 3 Boutique hotel17 I17 Female 20-29 Local 3 Boutique resort18 I18 Male 40-49 Local 3 Resort19 I19 Female 50-59 Local 4 Boutique hotel20 I22 Female 40-49 Local 5 Design Hotel21 I23 Female 40-49 Non-Local 1 Luxury Hotel22 I24 Male 50-59 Non-Local 23 Resort23 I25 Female 40-49 Local 30 Resort24 I26 Male 40-49 Local 33 Boutique hotel25 I27 Male 40-49 Non-Local 3 Boutique hotel26 I28 Female 20-29 Local 1 Boutique hotel27 I29 Female 40-49 Local 10 Boutique hotel28 I30 Male 50-59 Non-Local 9 B&B29 I31 Female 40-49 Local 4 Guest House

128

5.3. META CODES AND MASTER CODES OF THE FINDINGS

The data were analysed using thematic analysis (see section 4.8.2). The analysis generated

the findings through the application of master codes and sub-codes (Appendix 7). Meta codes

were developed to assist in grouping master codes and sub-codes. The following chart reveals

meta codes and master codes which are organised in order to present the findings of the

research.

129

EM: Entrepreneurial Motivations

FI: Family Influences

FE: Friends' Encouragement

AD: Attractions of Destination

TB: Type of Business

BG: Business Growth

BGS: Business Growth Strategies

BGP: Business Growth Plan

RBG: Reasons Behind Growth

BH: Boutique Hotel

FBH: Features of Boutique Hotel

BHA: Boutique Hotel Atmosphere

VBH: View of Boutique Hotel

5.4. ENTREPRENEURIAL MOTIVATIONS (EM)

The findings revealed that there were four prominent factors that motivate the creation and

operation of a boutique hotel. The motivation factors include the influence of the family,

friends’ encouragement, the attractions of the destination and the type of business. This

section was organized according to the following meta code and master codes.

5.4.1. FAMILY INFLUENCES (FI)

Ten respondents became entrepreneurs because of their family. They were surprised to find

themselves as boutique hotel owners because they did not plan to own a hotel business. The

findings revealed that the family had played a crucial part in influencing their decision; for

example, the idea of establishing a hotel business was generated by the family. The

respondents stated that, before becoming boutique hotel owners, they were engaged in other

business or employment. The family encouraged them to become boutique hotel owners

although they were still occupied with other business or employment. Four of the respondents

were willing to give up their previous occupation to comply with the family’s wishes.

However, there were two respondents who were forced to give up their preferred employment

in order to become a boutique hotel owner. According to the respondents, the family expected

them to undertake the business because other family members were already engaged in other

130

EM: Entrepreneurial Motivations

FI: Family Influences

FE: Friends' Encouragement

AD: Attractions of Destination

TB: Type of Business

employment or other businesses and the respondents were the only one in the family

available to take on the boutique hotel. It was then the respondents’ responsibility to maintain

the business. The findings revealed that the respondents gradually became content about

being a boutique hotel owner, once they began to operate the hotels. The quotes below

demonstrate how two respondents were forced to become entrepreneurs:

“No (I did not start a hotel right away). After I graduated, I worked in a company. I was majoring in

television. I wanted to do what I had studied. I worked at this company, in an animation department for

a year. Then my father did not want me to do it anymore. He said I had to have my own business. So I

did an MBA in the USA and then came back here. My motivation is from the family. I actually don’t

want to do this. (The owner was whispering since her father was standing near her). I want to do

television.” (I28, 88-106, 160-162)

“I was told to do this. Actually I used to be a contractor. As I said, we don’t have anybody in our

family to do this. I was making progress in the construction field. I did commercial building. For this

hotel, the renovation budget is quite high. If we hired a professional to do it, we might have to pay

more than 10 million (baht). So everyone in the family said I had to do it. If I did only the renovation

that would be ok, but actually I did everything. I am stuck here. Finally I fell in love with it because I

built it myself.” (I22, 152-158)

More than half of the respondents established the business because they owned some land or

a property (17 owners). Among these respondents, 15 of them inherited a piece of land or a

property from their family. Most of these respondents were local people. They stated that

they could easily sell the land or the property as people were interested in buying it. They

could gain benefit from the sale but nevertheless the respondents chose to keep the property

ownership to honour their family heritage. The land or the property was filled with family

memories and stories and it reminded them of grandparents and parents. The respondents

were also familiar with the surrounding environment and community. They said that to sell

the land or the property could cause change to the surrounding environment and community.

They did not know what new property owners would do with it and they did not want them to

develop the property without taking account of the impact on the surrounding environment.

The respondents wanted to pass on the land or the property to their children. They wanted

their children to inherit the land or the property; in the same way as they had inherited it from

their parents and grandparents. The respondents decided to change their property into a

boutique hotel as a way of preserving it. With this type of business, they could capture their

family memories (see section 5.4.4).

131

“At the beginning… How I can tell this. Er... because we have this land. We have this old house with its

unique characteristics. This makes us think. We want to do something good with it. We want to keep

this property for the next generation without changing it or selling it, not like many big properties

around here.” (I30, 6-9)

“(I decided to open a boutique hotel) because my old house has its stories. I want to keep it this way, to

remind me of my grandparents. I did not build them (hotel rooms). They are old properties. They are

old buildings. Some rooms used to be barns. Some rooms used to be storerooms. I just renovated them.

They are old buildings. They are like bungalows.” (I31, 37-43)

The primary sources of finance were parents. Eight respondents had parents who owned

another business. It was presumed that the parents gathered the financial resources from their

business. The parents were willingly to invest in boutique hotels for their children because

they wanted them to own a business and the respondents were willing to accept the offer. The

findings revealed that six respondents depended mainly on their parents’ investment. These

were the three newly graduated respondents. Two of them had had little involvement with the

establishment of the hotel as the hotels were established when they were studying. The

respondents revealed that the family wanted them to be responsible for the hotel’s

management and operation. The quote below demonstrates that family built the hotel for the

respondents:

“Actually our family are contractors. We have this land when we built a road from that place to here.

We had just bought it, not long ago…. No (I was not here when the hotel was built). My brother (who

had just graduated in engineering) built it. When I came back, it was finished.” (I17, 32-36)

(The respondent’s father built the hotel) “My father is quite a meticulous person, so it (the hotel) looks

like this. It turned out to be a boutique hotel.” (I28, 15-17)

Family also initiated the idea of owning a business e.g. a respondent stated that it was his

parents’ dream to own a business. Therefore his parents encouraged him to create the

business. Another respondent revealed that a family member introduced the idea of owning a

business. According to these respondents, the business ideas were discussed in the family

sometimes including other family members, such as aunts and cousins, as well as the parents.

The family discussed the possibilities and finally the decision was made by family agreement.

“It was about family investment. My parents invested in this hotel, I am the operator. My parents live

in a province in the south… Yes, (they help me) sometimes. But mainly it is me. The motivation is that

my parents want to have a business. Actually we own a school. I have a relative who has a hotel. We

know the income is OK. It is a business which can operate in Thailand because it is a tourism

destination.” (I15, 42-59)

132

At that time, it was in 2004; that was the time when we (the respondent and her family) decided to start

a business. It was because we had this land. It was ours for a long time. Then, our family, we talked. It

was about what business we should do, what would be the most suitable thing for this land. It should be

a business which we can take care of by ourselves. (I13, 9-12)

At the beginning, we (the family) did not decide what we would do with the land. Then my brother just

graduated with his master’s degree (civil engineer) from England and he wanted to build a hotel. So he

built the hotel here. It was because we (the family) have this land.” (I17, 4-7)

Family members played a significant role in helping the business for instance, they were

involved in the hotel establishment and operation. The respondents were assisted by various

family members such as parents, brothers, sisters, aunts and cousins, who helped the

respondents with the business operation e.g. they attracted customers and sold the hotel

rooms, they served the hotel guests and they took care of the guests for the respondents.

Family members were usually either hotel managers or hotel employees. As well as helping

to manage and operate the hotels, they also provided advice. The respondents trusted their

family members to establish the business and benefited from their family members’

backgrounds who were engineers, architects or contractors or they had connections with

useful business such as contractors, architects and designers. With their ability and the

connections, family members were able to construct the hotels for the respondents and design

and decorate them. The quotes below demonstrate the family involvement in the business:

“Yes, my father talked to a carpenter whom he had known for a long time. Therefore the hotel looks

like this.” (I28, 47-48)

“It is because I have my family which supports me. My parents give me advice. We help each other. I

did not walk this road alone. I also have aunts who help me. It is a family business. In my opinion,

doing business is difficult, if you do it alone. If you have father, aunts, family members that you can

trust, it can help you. It gives you a variety of perspectives.” (I13, 202-206)

The business was deeply integrated into family life, such that the business and family became

inseparable and relationships within the family were partly encouraged by the business. The

respondents enjoyed discussing, operating, and finding new business ideas with the family

and they shared their interests with family via business discussion and thus the business

became a part of family interaction e.g. one respondent’s whole family took a vacation to

generate business ideas. The quote below shows that the business encouraged family

interaction.

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“The person who designs this hotel is a professor. He is an expert in architecture. He… is my step-

father. Everything I do, I do with him. We work together. He will do the exterior. I will do interior… He

teaches me. Since we are together, I have learnt architecture and things like this from him. Actually I

did not graduate from the field. I help my step-father and he gives me advice. He is an expert in this

field.” (I2, 35-46)

"My family and I have been to Laos together. We love the concept of the place. Normally when I travel,

I go with my family. We do things as a team. Members of the family include aunts. It is our dream (the

business). We want to have more customers, more facilities. We want to do it. We agree on the concept.

We share the same experiences. The experiences are from when we travel together." (I16, 135-142)

5.4.2. FRIENDS’ ENCOURAGEMENT (FE)

It was discovered that the respondents were supported by friends in establishing and

operating their business. Sometimes even friends provided business ideas (seven respondents)

e.g. the friends saw potential in the respondents’ land and property and asked the respondents

to consider the idea. However, the influence of suggestions from friends was not strong,

unlike the motivation from family. The suggestion became one of a range of alternative ideas

for the respondents and they did not decide straight away to build a hotel but rather reviewed

their alternatives and possible ideas before making a decision. Nevertheless, the respondents

claimed that the friends’ suggestions inspired them.

Friends also provided the opportunity to share business ideas and knowledge. The findings

revealed that some of the respondents had friends who owned a boutique hotel although the

relationship between the respondents and friends existed before the establishment of their

business. Therefore, occasionally, they discussed the business and exchanged information

while they played golf or during a dinner party. Some of the respondents and their friends set

up websites specifically to promote their boutique hotels jointly. They assisted each other

because they are friends. Friends also sometimes assisted the respondents with hotel

operations by, for example, providing business advice or suggesting solutions for business

problems. Nevertheless, the respondents did not fully comply with their friends’ advice, but

instead would consider the advice before making a decision. The quote below demonstrates

that friends partly assisted the creation and operation of the business.

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“Actually I did not think about a hotel business. This land, I wanted to build a house. But it is because

this land is long and it is next to a river and my friend said to me that I should build a hotel. So I try, I

started a small hotel with only six rooms.” (I29, 5-7)

"Actually my hotel is not a boutique hotel. People call it a boutique hotel. The people in a boutique

hotel group actually are my friends. We chitchat and play golf together. They invite me in. So I am in

the group. I still don't think my hotel is a boutique hotel. But my friends said it is a boutique hotel. So I

said OK. I am in the group (of a boutique hotel website)." (I12, 105-114)

“I don’t have any hotel experience. But I have a friend who owns a guesthouse. When I have problems,

I ask my friend. For example, if I have this type of guests, what I should serve for breakfast. But I don’t

follow all the advice. I don’t like cooking. I do what is convenient for me. (I31, 26,129-133)

5.4.3. ATTRACTIONS OF THE DESTINATION (AD)

The findings revealed that the respondents desired to live in the area. Among the 13 non-local

respondents, 10 decided to move into Northern Thailand, after being previously employed in

other regions. Some of them had another business in other regions and they had family in

other regions. The non-local respondents revealed that they used to travel into the area and

they were impressed with aspects of the area, such as its architecture, culture, the Northern

people and community. These made them desire to live in the area and therefore they moved

into it to start up a boutique hotel business.

Seventeen local respondents wanted to remain in the area. They lived with family, were

surrounded by friends and they liked the surrounding environment and their community. For

them, it would be difficult to start a new business in a different area. The findings revealed

that some of these respondents still engaged in other businesses or employment in the area.

The following were reasons the respondents gave for desiring to move into or stay in the area,

and build a boutique hotel. According to the interviews, living conditions were one of the

primary reasons. The respondents stated that the area was not overcrowded and it did not

have serious traffic problems, although most of the people travel by car. It was easy to find

food and had a good variety of restaurants. The area had a nice climate and beautiful scenery

with mountain views. In addition, the cost of living was not too expensive.

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“I feel that it’s a good place to live here, in Northern Thailand. My family also likes the Northern area.

It is the town where we feel comfortable to live in. It has a good international school for my kid. The

school tuition fee is not too expensive. It’s not cheap but I think that you can’t find this rate in the

centre of Thailand. Overall, it’s a good place to live for me. (I5, 254-259)

“I used to live abroad. I wanted to have a house, which would be similar to the house I used to live

abroad, in the Northern area where I can stay for relaxing. I’m not from the Northern area, but I like

it. It’s not a crowded city. It’s not like central Thailand, but it is not a small city either. It has

everything. The air is good. I used to visit the Northern area often. I tried to find a piece of land but I

didn’t like them. Finally I found this place.” (I23, 6-9)

The respondents were interested in historical stories and the architecture of the area because

the Northern area has an interesting history and most of the Northern provinces are still filled

with old architecture in the old towns. The majority of the boutique hotels were situated in

these areas among old buildings, historical buildings and many temples. These areas contain

features that are different from other regions.

“It’s because I can’t find a place like this in central Thailand. I like history so I want to combine my

hotel with it… (I like Northern Thailand because) I think people here are calm. And the culture, this is

the most important thing. I like it. (I2, 23-24, 70-71)

The respondents were impressed with Northern people and their community. The

characteristics of Northern people are different from other people in different regions.

Northern people are kind, friendly and polite and they welcome non-local people and tourists.

They live an easy life, not rushing through daily activities. Northern people live peacefully in

their community, depending mutually on each other. The quote below demonstrates a

respondent’s view of Northern people:

“I feel that people are mutually depending on each other. My first impression was when I was deciding

to buy this land. I met my next door neighbours. They invited me for a meal. This was very rare, to meet

with this kind of situation. I lived in central Thailand all my life, I never had this. I felt good about it

and it was my first impression. At the beginning, I felt that the roads are too narrow, but now I am used

to it and actually like it. Because it is not easy to access, the location is being developed slowly. I don’t

want this to change. It gives a sense of home. The community has its (NC) wire broadcast. As an

outsider, I feel that Northern Thailand has things to offer.” (I5, 99-108)

The respondents recognized that their hotels were not located in the best destination for a

hotel business. There are better areas such as the centre and south of Thailand which could

generate better occupancy as they have more tourists. The respondents stated that there was

not enough destination promotion in the Northern region. The area has many hotels, therefore

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there are many competitors and the respondents believed that there was an oversupply of

hotels, which created intense competition in the area. In addition, the hotels in the Northern

area have to compete with other interesting destinations, including destinations abroad such

as Burma, which is next to the Northern area and other nearby countries, such as Vietnam,

Cambodia and Singapore. Nevertheless, the respondents chose to be in the area. The boutique

hotels were their home and situated in an area where they wanted to live. The quote below

shows that the respondents acknowledged the disadvantages of the destination:

“I think in term of the destination, it has potential to grow (establish the business). But er… it is more

difficult than in other destinations, such as the centre or south of Thailand… In terms of room rate, in

the area, the room rate is cheaper than… in, for example, the southern or central part of Thailand. In

Singapore, the room rate is almost double, compared to ours. This is four or five years ago. In

emerging destinations, such as Burma and Vietnam, the room rate is better than ours and I am

concerned. Our service is better but these countries are new destinations. People want to go there.”

(I5, 118-120, 287-294)

“I looked at many places, such as Central Thailand, but it’s here in this city because it’s the city I want

to live in. Central Thailand is better for business but it is not an area where I want to live. If I have to

work in any place, it should be the place where I want to live.” (I15, 56-61)

The respondents believed that their hotels contribute to the Northern area and helped to

promote the area because the boutique hotel buildings are part of the beauty and attraction of

the area. The historical style of the buildings has been preserved so that people can appreciate

the local architecture. Many people know the area because of the boutique hotels. A

respondent stated that his boutique hotel drew tourists to travel in the area. His hotel was

situated in an area that was not well known.

“My hotel buildings inspire other people. Now, people want to preserve the historical building style.

They want to build this style of building. I think that if everybody agrees on this (to maintain the

historical buildings) er… and our town plan is to be the town of culture and magnificence… In order to

be the town of culture and magnificence, people must understand and appreciate (our culture). Some

people still do not appreciate or understand this. Yet my hotel shows that it understands the culture and

the magnificence of the culture.” (I4, 158-163)

“I want people to know this area. It’s because since I’ve operated this resort, since the first year, I

learnt that only a few people know this area. They know the main province but not this area (laugh). So

I have this idea. I am here. What can I do for this area? I have my hotel which I can show to other

people. I have to try to show it, try to make it known to other people, so people will know about this

area. At the moment, I believe that many people know this area through my hotel.” (I18, 193-198)

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Despite the destination problems, the respondents stated that their boutique hotels confirmed

good occupancy. In addition, the respondents overlooked marketing activities or conducted

only few marketing activities. The hotels had only their website to promote the business.

They did not offer any promotional deal; for example, one boutique hotel had the same rate

all year round. Nevertheless, the boutique hotels were full throughout the year although the

respondents did not expect full occupancy and they were surprised that the hotels were

popular and full. They believed the guests knew them by word of mouth and through guests

sharing their experiences via internet forums. The quotes below are examples of the

respondents’ who did not conduct marketing activities.

"Normally, big hotels usually decrease their prices. I never do that. Big hotels nowadays, to be honest,

sometimes charge 499 Baht or 600 Baht, and they sell at this price. But my hotel is around 1,000 Baht,

which is the same as before. I am confident that I can sell. Even the rooms which are 3,000 Baht can be

sold. Maybe it is because we are confident in what we are. There is no parking lot but guests like it."

(I14, 278-282)

“My garden does not have expensive plants. It is lively, similar to a garden of a house. It is a garden of

a simple house. It is a house for people who love trees, who want to have trees. The hotel sells itself. I

do not have to do advertising. I don’t have to reveal myself. Guests come and they talk to others. It’s

like a magnet. It attracts people who have the same character. People who don’t like this aren’t our

guests. People, who like boutique hotels with modern style, won’t stay here.” (I8, 398-403)

“I opened this hotel without any knowledge. I didn’t know anything. I didn’t know “Lonely Planet”. I

didn’t know “Tripadvisor”. I knew nothing. The first year, I’ve got an email. It said that this hotel is in

the top ten bed and breakfasts in Asia. I knew nothing about this vote. I didn’t know what I did for this

vote. I didn’t do anything. I didn’t expand the business. I didn’t advertise it. I didn’t do anything.”

(I12, 59-66)

5.4.4. TYPE OF BUSINESS (TB)

Eleven respondents believed that the hotel business was easy to enter. It required some land

or a property that they could turn into a small hotel. Therefore, the respondents started from

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the position of owning a piece of land or a property and then they built a new hotel on the

land or renovated the property. They believed that building a hotel was similar to building a

house and they could start to operate a hotel with only few, simply-decorated rooms; for

example, one respondent started her business with only two rooms and another with only six.

“I used to work in a hotel. I used all of my energy in that hotel. One day I realized I should own

something. It could be small. At that time I thought that I should do something that would belong to me.

I had some land. I wanted to do something small so I could use it to welcome my friends. I thought that

instead of building a house I should build a hotel. I could run it while I welcome my friends. I did not

call this place a hotel. I called it a conceptual home. The place shows my cool idea and my lifestyle.”

(I7, 4-9, 25-26)

The respondents were confident that they had the ability to operate a hotel. They believed that

the hotel business was similar to other businesses, or in other words that every business

would require a similar set of skills to operate it, for example the respondents believed that

the hotel business has same business functions, such as human resources, marketing and

finance, as other businesses. Operating a hotel did not require any specific skills and the

employees did not require specific knowledge or experience. In fact, the respondents

preferred employees with no experience. A hotel could offer only a few services. e.g. some of

the respondents’ hotels only had room cleaning service and breakfast service and so the

respondents could operate the hotel at the same time as another business or employment. The

quotes below are from respondents who did not have previous hotel experience.

“I think it’s not difficult. This business is not difficult. There isn’t any complexity. It’s just a service job

and it’s about location. Some people are afraid because they have never done an administrative job, or

dealt with employees, but I think it’s not too difficult. (I15, 292-294)

“I used to operate a family business. I did this family business for more than 10 years, before I ran this

hotel. Is it difficult? Yes it is. Every business is difficult. Nothing is easy. I… I believe that if we know

our product and whom we sell the product to, and know who we are, there are always ways for the

business. There is a market segment which… which others cannot spot. There is a market and we know

where we can find them (customers). We have 74 rooms; it’s not too… too difficult to find customers.”

(I3, 63-76)

Nine respondents believed that a boutique hotel was an affordable business because they

thought that it did not require a great amount of financial investment. Most of the respondents

thought that the investment was less than for a large or chain hotel, although two respondents

thought the investment required was equal to what was needed for a large or a chain hotel.

Some of the respondents wanted to use only their savings money and thought that they could

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build a boutique hotel with a limited budget without taking a loan, and they achieved this by

building and renovating their hotels gradually.

“We don’t want to take a loan. We want it to be like a family business. So my parents said that we

should do only what we can do. We have lots of wood. We talked to an architect, and we agreed that

we were going to chill about the building. We could just start selling rooms from around a thousand

baht per room.” (I28, 11-15)

“At that time, we did not have much money to invest. We had only our land. I didn’t have to buy new

land. I’d only a small investment for the construction. We slowly developed it, so we didn’t have to use

other sources of money.” (I16, 131-133)

Boutique hotels were built with the respondents’ favourite places in mind (seven

respondents). The respondents happily described their memories of places they used to visit.

The majority of the memories were from their experience visiting or living abroad. The

respondents stated that their memories of places inspired them to create a boutique hotel. The

respondents compared their hotels with places in their memories and the hotels were designed

to be similar to the houses and atmosphere of those places.

“I lived abroad since I was a child. I was familiar with it. Personally, I like to stay in small hotels. I

don’t like staying in a big hotel. I try to memorize these experiences and I adapt them for my hotel.”

(I30, 90-93).

"Actually about my motivation is er… In the past I used to live abroad. Thirty years ago, boutique

hotels did not exist. There were only small hotels in towns, in Europe and America. Each town has own

character. When I was abroad, I wanted have a hotel like those". (I2, 7-10)

“I did not call this a hotel or a boutique hotel. I call it a bed and breakfast. It’s because… It looks like

houses in England, doesn’t it? In the area of Stratford or around there, there are many small houses

open for travellers. It’s like that. It presents a ‘real people’ lifestyle.” (I12, 26-29)

Seven respondents enjoyed their time building their boutique hotel and said that the building

process allowed them to be busy with things that interested them e.g. respondents with an

architectural background liked to design and decorate their boutique hotels and a respondent

with a historical background told historic stories through his hotel’s design and decoration.

The quotes below demonstrate the relationship between the respondents’ interests and their

boutique hotels.

“One of my motivations is that it’s… er… It is a private preference. For a long time, I have liked to do

art work. And if I have to do something, I also want it to connect with the community of the Northern

area. I try to produce a work like this.” (I4, 141-143)

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“(I built the boutique hotel because) This is my private preference. It’s because I normally like

designing and decorating work. And I have got this place which is situated in a good location.” (I10, 8-

9)

The purpose of the boutique hotels was not to increase the respondents’ wealth (twelve

respondents). They did not run hotels with a profit motive. Indeed, eight of the boutique

hotels were just a side-line business and not the respondents’ main source of income. Some

respondents stated that their boutique hotel was not a business but was rather built to be their

home, as well as to satisfy their interests and be a part of the community. The respondents

stated that their boutique hotels did not generate much profit and pointed out that there were

other businesses that generate better profits. Hotel profit and income were used for property

maintenance, as the condition of the hotels is important. The quotes below demonstrate that

the respondents were not motivated by profit:

“I don’t think that it’s difficult (having a hotel business). I want to do it. Profit or not, I don’t care. I

don’t think about it as a career. I just want to do it. I don’t want to waste my home. I don’t want it to be

shabby and empty. I don’t want profit. Right now, I serve my guests without thinking about the cost. I

have no idea about the cost.” (I12, 48-51, 73.75)

“Hotel owners who want profit from the hotel, I think they should do something else. The hotel income

is OK, but for this business, when you earn you have to spend. The business is for people who have

money. My hotel is built to be a part of this province. I build a beautiful hotel for the city.” (I20, 240-

245)

“It is my passion. It is… er… Actually if you ask about profit, I would say no, I don’t actually get it. No

because when I get it, I use it for things such as painting. (For example) these chairs, they soon have to

be fixed. You can see when they have marks, they are not beautiful. Besides look at this old building; it

costs to maintain it. If you let it be like this, while colourful, before long, it turns shabby. It has to be

painted all the time.” (I2, 327-330)

The respondents liked to be in their boutique hotels and they often mentioned that their hotel

was their home (nine respondents). Furthermore, it was convenient for them to stay in their

hotels, because they had employees who cleaned the hotel and cooked breakfast for them.

They also could invite family or friends to stay. Nine of the respondents lived in their

boutique hotel while five respondents said that they lived nearby. The respondents liked the

atmosphere of their hotel. It was a relaxing place, especially in the evening after they came

back from other jobs. They saw the hotel as a good place to be when they needed peace and

quiet. In addition, they enjoyed watching staff welcoming guests and watching guests

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appreciate their hotel. While they said they liked guests with similar interests, only a small

number of the respondents occasionally enjoyed talking to guests (see section 5.6.2).

“Er… I usually come in the afternoon. I have other work in the morning. In the afternoon, I come in to

take a shower, drink coffee, and have lunch. Then I will go out… When I am in the hotel, I feel that er...

I see my employees work, I see my customers have lunch at the restaurant, I am happy. I don’t think

that the hotel is a business. A small hotel is not a business. It has a small number of rooms. We do not

earn much profit but we survive.” (I19, 111-120)

5.5. BUSINESS GROWTH (BG)

The findings revealed that only six respondents were neither growing their business nor had

any plan to grow it. Fourteen respondents were pursuing business growth at the time of the

survey and 18 planned to grow the business in future. In other words, the majority of

respondents were growing and/or desired to grow the business. The information on this factor

was organized according to the following meta code and master codes.

5.5.1. BUSINESSES GROWTH STRATEGIES (BGS)

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BG: Business Growth

BGS: Business Growth Strategies

BGP: Business Growth Plan

RBG: Reasons Behind Growth

The purpose of this section is to report on how the businesses were grown, while the reasons

for seeking this growth are described in section 5.5.3. Fourteen respondents had grown their

business differently. They increased the number of rooms or built a new hotel or launched

new businesses.

Of the 9 respondents who had increased the number of rooms, some had started their hotel

with only a small number of rooms, such as one, six or nine rooms. The majority of the

respondents slowly increased the number of rooms by adding rooms in the hotel grounds

using their own money for the growth. Even after such growth, the hotels still had fewer than

forty rooms.

Table 5.11: Increasing the Number of Rooms

Interview Original number of rooms New number of rooms Years of operation

I30 1 6 4

I18 1 9 3

I16 1 10 3

I29 6 13 10

I30 5 15 9

I13 24 34 5

I11 9 39 7

I17 28 50 3

I26 60 120 33

Three of the respondents, according to Table 5.2; I11, I17, I26 increased the number of rooms

rapidly, to the hotels’ full capacity, by constructing new buildings. They increased by more

than 20 rooms, I11 by 30 rooms, I17 by 22 rooms and I26 by 60 rooms.

Three respondents built new hotels, similar to their previous hotels e.g. the hotels had a

similar number of rooms, contained similar facilities and had the same style of design and

decoration. Two new hotels were established in Northern Thailand and one in central

Thailand. Two respondents launched their new non-hotel business.

5.5.2. BUSINESS GROWTH PLAN (BGP)

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The purpose of this section is to report on how the respondents planned to grow their

businesses, while their reasons for growing them are further described in section 5.5.3.

Eighteen respondents planned to grow their business, by building a new hotel and planning to

add new facilities, and new rooms, with new, improved services. Five respondents also

wanted to change to a new style of hotel.

Eight of the respondents wanted to build a new hotel similar to their current hotel. The new

hotel would contain a similar number of rooms and it would convey the same style of design

and decoration. Some of the respondents would prefer to establish a new hotel in Northern

Thailand (four respondents), while some desired to locate their new hotel in other regions

(three respondents).

Seven respondents wanted to add new facilities, new rooms and new services. The new

facilities included, for instance, parking lots, seminar rooms and meeting rooms. Some of the

respondents wanted to add new leisure activities such as swimming pools and gardens, as

well as adding room facilities such as DVD players and music players. The respondents who

wanted to add rooms planned to acquire new land near their existing hotel.

Five respondents wanted to improve services. Some of the respondents were not satisfied

with the current services. In particular they stressed the need to increase the ability of their

employees, especially the ability to communicate with guests e.g. the respondents wanted

their employees to be able to speak the guests’ languages, such as English and French. Some

of the respondents said they would train the employees themselves, while some of them said

they would set up a new employee qualification.

“I want to, er… improve my staff to be better, and rooms to be a higher standard. The disadvantage of

a boutique hotel or bed and breakfast is that guests cannot expect service. It’s that guests do not know

what they’ll get. In four or five star hotels, or chain hotels, we’ll know what kind of service we’ll get,

how thick the bed is, how the fabric is, and things like that. This’s what I’ll improve in the future. They

(employees) have to respond to customers' requests and actually they have to be able to speak English.

They have to be able to communicate with guests. This is important. And er… they have to understand

the culture of each country, something like that.” (I11, 63-74)

“We (the respondent and his employees) talk and train our employees every month. We’ve to (sign)

adapt our attitude, so they’re ready to serve. We have to change their (the employees) idea that when

guests come to our hotel, they do not want the hotel to be like… like standard… such as famous chain

hotels. For example, when you go to Europe, it is European standard or Asian standard or other

countries’ standard. These brands, they have their own standard. Guests er... they are used to meet

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these standards. But what can we do to deliver our characteristics of Northern style… this beauty. How

can we do… to make them see? This is what we have to add to our employees. We have to use their

(employees) personality more than just teaching them. Force them, they’ll do it for a while but if we

use their personality… we have to use their personality.” (I3, 138-149)

Five respondents wanted to change their hotel to a new style of hotel. It was interesting to

find that these respondents had quite similar ideas. They were interested in the theme of the

wellbeing of their guests. Thus, new activities would be added to fit with this concept e.g. the

hotel might plan to have an organic farm which produced organic food and products, and

there would be a place to practice meditation in the hotel. The hotel would also provide

accommodation for elderly people. The respondents also wanted to launch new activities for

their guests such as cooking classes or Pilates classes.

“It’s because right now the concept of wellbeing is a very strong trend. Er… in the future, this will be

for guests who come from abroad and who are interested in food. It’s because I’m already in the food

business. We should have cooking classes, with Thai dishes, something like that. So the foreigners

would know Thai food better. We have land. Instead of buying ingredients outside, we can grow them

ourselves and then have very fresh ingredients.” (I16, 167-181)

5.5.3. REASONS BEHIND THE GROWTH (RBG)

This section reports the reasons why the respondents grew and planned to grow the business.

There was actually a wide variety of reason but they can be divided into two main ones. First,

the respondents grew and planned to grow their business because they wanted profit and

second, they grew and planned to grow their business for non-profit related reasons, and this

second category was the most common. This section, firstly, reports on the respondents who

sought to make a profit and then the variety of non-profit reasons are revealed.

Six respondents saw opportunities to make more profit by growing the business. Their

boutique hotels had many guests, being fully booked in the high season and still having many

guests in the low season. The respondents stated that many times their hotel was fully booked

and their regular guests could not book a room. New rooms and new hotels were built in

order to serve more guests. Some of the respondents wanted to expand their target market, for

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example, targeting corporate guests who were interested in staying in boutique hotels. The

respondents stated that adding some facilities such as seminar rooms and parking lots could

attract this new group of customers. The quality of service was also a focus of improvement.

Some of the respondents wanted to retain the hotel’s profits so they could offer a level of

service that enable them to retain their current guests as they stated that boutique hotels need

returning guests. In the long term, service quality could also allow them to increase room

prices.

Hotel growth could positively affect hotel operations. The respondents thought about their

hotel costs while they were operating the boutique hotels e.g. before the growth, a respondent

hired too many employees but she built more rooms and then she could effectively use her

employees. Another respondent stated that her hotel did not originally have enough rooms to

warrant undertaking marketing activities but if she built new rooms, the cost of the marketing

activities would match the hotel’s income. There was also a respondent who built hotels in

different regions. He stated that the growth would help him sell the hotel rooms more easily.

The following quotes show the reasons for growth (see also table 5.2).

“We built more rooms (to serve more guests). We didn’t intend to be small. But it’s because in this

area, I can build only a three storey building, so I can expand it to only this much. If this land was

located in a different site, I could build it up to seven storeys. I could have sixty rooms. It’s up to the

location.” (I11, 56-58)

“Yes, to have more guests. It’s actually also because… we have sufficient employees to serve guests for

the new rooms. In high season, there are many people, but in low season it’s quiet here. In high season,

there are not enough (rooms).” (I17, 89-91)

"So I have one (hotel) by the sea. I must have another one in the mountains and then I have another

one in the city. Then this is the complete range. When there’re guests who come to Thailand and want

to stay by the sea, I’ve a hotel there. If they want to go to mountains, I’ve a hotel there. If they want to

stay in the city, I’ve a hotel there as well. So it’s easy to sell." (I6, 113-115)

Nevertheless, the respondents did not seek growth only for profit. The findings revealed that

there was a mixture of reasons for seeking growth. Four respondents also grew and planned

to grow their business for non-profit reasons and they considered non-profit reasons more

important than profit reasons. It implied that without non-profit reasons, the respondents

might not grow their businesses e.g., a respondent planned to grow for profit and it was also

because he knew that his network, i.e. cousins, could support him in creating the growth.

While a respondent wanted to make a profit from the growth, he was also encouraged by

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family. The respondent profited from his business growth and importantly the growth

allowed him to live with his family. This respondent had a family in Northern Thailand.

Before the business grew, he regularly had to travel to another region to work, but after he

grew the business, he could live with his family. The quotes below show that there was a

mixture of reasons for growth.

“The hotel might change from hotel to a place to take care of elderly people. Or it can be a place for

patients. This is because one of my relatives has a medical degree. We talked about this idea… I think

this idea will work. It’s a new business idea. Nobody else has done this.” (I8, 253-264, 278-279)

“This is a family business. My brother took care of the family factory, so I had to do this hotel. Ah… at

that time, I had two options. First I could work according to my area of study (being a pharmacist) or

second I could do the business here. I thought this (the hotel) was too small. If I decided to do it (the

hotel), it had to be expanded… I felt that Thailand is booming (in terms of tourism). The amount of

accommodation, at that time, was not enough. I had a cousin who had a small guesthouse. It was a

luxury guesthouse. At that time, the price was very good." (I26, 21-22, 45-46, 51-54)

Nineteen of the respondents grew their business for non-profit reasons. These were diverse;

however they could be grouped into four main reasons. First, the respondents grew their

business to satisfy their own interests. Second, it was because, after operating their hotel

business, the respondents were pleased with the hotel context. Third, they sought to grow the

business to satisfy the family and finally, the growth could satisfy the guests and so bring

happiness to the respondents.

The respondents who grew the business to satisfy their interests said that the growth process

allowed them to enjoy their interests e.g. they were interested in designing and decorating, so

they decided to build a new hotel, build more rooms or launch a new business because,

during the growth process, they could enjoy designing and decorating their new project, new

hotel and new rooms. It was evident that some of the respondents were not interested in the

hotel operations.

“After I did it for a while, I felt bored. I ran it until I felt tired. I know now that I don’t like service. I

don’t want to do service as my career. I like being creative. I let others rent this place and I come in

sometimes to give my opinion. I will also let others rent my other boutique. I’m a creator not an

administrator. There’re so many things to manage. Oh... many kinds of people, customers, staff, I feel

dizzy… I am a designer. I have my own project. I am a designer. I travel and design.” (I7, 78-80, 99-

100, 103-112)

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The respondents looked forward to enjoying themselves with the outcome of the growth. The

respondents wanted new facilities and new leisure activities, so they could enjoy them e.g.

one respondent liked Pilates, so she added a Pilates class. Another was interested in

meditation, so she wanted to build a place for meditating in her hotel. Similarly, another

respondent liked growing trees and he built a new hotel with a garden. The growth would

attract a new group of guests and the respondents would enjoy themselves with guests who

shared similar interests. The quotes below demonstrate that the growth was conducted to

satisfy the respondents’ interests.

“The owner likes to design and build something like this (the hotel). Right now he is launching a new

business project. He builds Northern style houses. The houses are just like this hotel. He makes the

brochures himself for advertising them.” (I32, 21-23)

“Actually I have another hotel (his second hotel). It’s a boutique hotel. It is located outside this town. I

have made it like a countryside house. It’s because this hotel (the first boutique hotel) is in town And I

want to live among trees… My inspiration for the second hotel is that I want to grow trees. I want to

have a house with garden.” (I7, 78-80, 99-100)

“I want build a house for elderly people. It’s because there is a modern group of people including me

who do not have family. We want to live peacefully but we don’t want to go to temple… I want to adapt

this side of hotel, into a meditation area. It won’t be limited to only Buddhist people, but it’ll serve all

religious... er... This is the plan for the next 10 years.” (I25, 77-86)

The second non-profit reason for growing their business was that after operating a boutique

hotel, the respondents stated that they liked the hotel context. Some of these findings were

already shown in section 5.4.4. These respondents started their hotel business with a small

number of rooms as they wanted to try operating a hotel business to consider if they liked it.

Some of the respondents started the business because they were forced into it by the family,

but nevertheless after operating a boutique hotel, they were pleased with the hotel context e.g.

they liked being in the hotel and they like to be in the hotel business. They liked running their

hotel and enjoyed their relationship with their employees (see section 5.6.2). They liked to

talk to employees and to talk about their employees. The hotels were operated by the

employees while they considered the overall picture of the hotel. The respondents decided

that they would continue in the hotel business and therefore, they increased the number of

rooms, or built a new hotel or generated a plan for the growth.

This growth did not affect hotel operations, because the respondents hired professional

employees to take care of the business so they could give their attention to the growth of the

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business. Two of the respondents let their hotels to tenants who were believed to have better

business operational skills. It was evident that these respondents were still involved with the

hotels; they occasionally gave their tenant advice about the hotel and they occasionally

contacted the hotel managers and sometimes they still visited the hotels.

“This hotel, I let it to a tenant. I let them manage and operate it. I come in to see if everything is good

or anything needs improving. I give them (the tenant) my comments.” (I7, 104-105)

“Now he (the owner) is busy with that (launching new business project). He occasionally comes in the

hotel.” (I32, 20-24)

The third reason the respondents grew or planned to grow the business was because of the

family. The respondents wanted to live with their family e.g. a respondent started their hotel

with a small number of rooms but the hotel’s income was not enough to move into the area.

He had to build more rooms so that they would earn enough income to live with the family.

The family encouraged the respondents to grow the business, which they were able to do

because they were assisted by their family. One respondent, for example, decided to grow her

hotel business and her brother built additional rooms for her, while another generated a

growth plan because he was assisted by his cousins and another built more rooms after his

family encouraged him to operate the hotel as his full-time career. The findings revealed that

business succession by family members could lead to business growth. The respondents

wanted their children to be their business successors. They believed that, after succession, the

business would be grown by their children and the respondents would support their children

to achieve this. The quotes below give examples of family encouraging the growth of

business:

“I still worked in Bangkok when my mum got sick. I tried to find a way to live in Chiang Mai. In the

past, this area used to have small houses. The houses were rented by foreigners. The tenants liked the

atmosphere. When we (the respondent and his family) decided to move back, we started with 5 rooms.

At that time, I wanted feedback from the guests. (The owner’s wife and children, decided to move into

the area first, without the owner)…During the first period, I still worked in Bangkok. After that, I

gradually reduced my routine work. I changed from full-time work to freelance work. Then I started to

reduce my freelance work and worked full time at this hotel… This was because it was getting better

and better and we expanded the rooms at the back of the hotel.” (I30, 9-14, 66-71)

“I will not expand. This hotel will not be expanded. Will I create a new hotel somewhere else? Er…

right now I do not think about it. I used to think that I wanted to have a hotel near the sea. It’s because

when I was young, I used to live near the sea. Moreover I notice that guests come to the north, and then

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they will go to the sea. But I’ll wait for the next generation (my children). If they want to expand or do

anything, it’s up to them.” (I30, 156-159)

“If I do, I’ll make an organic hotel (future plan). I mean if I do (my future plan). But I do not really

want to do it. If my children do not want to do, I’ll not do it.” (I24, 96-97)

The final non-profit reason for seeking growth was because it could increase the guests’

satisfaction. The respondents stated that the guests’ satisfaction generated their happiness and

therefore they were willing to grow the business for their guests. Indeed sometimes the

respondents grew their business because they were encouraged to do so by their guests. One

respondent, for example, started her hotel with only one room but customers in her other

business encouraged her to build more rooms so they would be able to stay. The respondent

decided to build more rooms and the new rooms were established to surprise the guests.

Although she could have added more rooms, the hotel had only six rooms. Generally the

respondents focused only on growth that would satisfy their guests and avoided growth that

would cause the guests’ dissatisfaction.

“I don’t want to grow. I don’t want to expand in terms of more rooms or more branches. I am

concerned about the quality of service. I want to take good care of the guests. I see the guests as family

members. I want to expand the activities that are wellbeing activities, so the guests will have activities

to do while staying in the hotel. I’ll be the link between class, teacher and guests”. (I1, 18-22)

“Yes (the guests feel something special). The first time guests came, there was only one room. And

then… then… when the guests stayed here…. When customers came to buy products (the hotel was

situated in an area where the respondent conducted another business), they saw guests staying here.

Oh... you have a guesthouse? They asked, then, another step, from one room to two rooms and three

rooms. It was because guests come for the first time and for a second time it (the hotel) was changed. It

was because I did it step by step. Er... when they came for the second time, they say... oh... last time I

came there was not this corner and that corner (smile).” (I31, 111-116)

5.6. BOUTIQUE HOTEL (BH)

The purpose of this section is to report on the respondents’ views about boutique hotels.

Almost all of the views were obtained from the owners of boutique hotels. The section

reveals the features and atmosphere of boutique hotels, as well as a definition of a boutique

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hotel and the boutique hotel’s role in conservation. The sector is organized according to the

following meta code and master codes.

5.6.1. FEATURES OF BOUTIQUE HOTEL (FBH)

The findings revealed that each boutique hotel was different in its design and decoration.

Nine respondents believed that their boutique hotel was different from other boutique hotels,

because the design and decoration depended on the respondents and each respondent had

different ideas e.g. eleven hotels were designed and decorated to be contemporary houses,

combining historical and modern Thai and Northern Thai style. There were also different

types of Northern style houses e.g. three hotels were designed and decorated in the style of

Northern houses while one hotel was designed to be like the house of a governor in the past

and another decided to mix Chinese and Northern Thai styles.

Each boutique hotel told different stories; some of the hotels were designed and decorated to

tell family stories (three hotels), while some of them wanted to tell the story of the location

and community (three hotels). There were hotels that combined the stories of places and

history, where the hotel design and decoration were related to the stories (three hotels).

Therefore, each boutique hotel was presented differently, such that the respondents stated that

it would be difficult to compare their boutique hotel with others. The quotes below give

examples of the respondents’ views about boutique hotels being different from each other.

“I think boutique hotels don’t have to be in the same pattern. They have to have things that are

different from each other. This depends on the likes and the taste of both designer and owners.” (I16,

150-152)

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BH: Boutique Hotel

FBH: Features of Boutique Hotel

BHA: Boutique Hotel Atmosphere

VBH: View of Boutique Hotel

"I can’t say that my hotel is better than others because our design is better. I can’t say that, because

other hotels are also great, right? So what is mine is mine, and theirs is theirs. This uniqueness, we

can’t comment on. People who like this design might say it’s beautiful, but people who don’t like it

might say it’s not beautiful." (I15, 224-227)

Thirteen respondents designed and decorate their own boutique hotel. They started from an

idea about the hotel concept, created from the respondents’ interests and their stories, which

were transformed into the design and decoration of the hotel. One respondent, for example,

was interested in Northern style architecture, so his hotel was designed and decorated with

Northern house style and it told stories about the lifestyle of the Northern people. Three

respondents stated that they did not have any background in designing and decorating, and so

they researched ideas. During the interviews, the respondents told the stories of their boutique

hotel. These stories were varied and emphasised that the boutique hotels were different. The

quotes below demonstrate that the respondents designed the hotel themselves:

“I made all the detail about the wood, about the design. The design in the rooms; I designed them

myself. For this ground floor, mostly, I talked to an architect about the style that I wanted. I positioned

myself… in… er… If comparing (my hotel) with women, it (the hotel) is a Northern woman, something

like that… wearing a Northern style skirt… It has the style of Northern people. It’s more like that, soft.

It isn’t like... isn’t like hotel X which dresses like a modern girl. My hotel is different from that hotel. I

compare my hotel with women.” (I14, 99-108)

"I think that er…. Boutique hotel is… It has to have its own character. I had to study more. And my

wife, we married and had a child. When my child wasn’t yet one year old, we started to study the

project. My wife started to buy text books and read and we hired consultants to help us with financial

documents. But when we talked about the look of the hotel, or what we would have in the hotel, all of

them (the ideas) came from me. How I wanted it to be. When I bought the land, I didn’t consult with

anyone, no architect or anyone; we took care of it by ourselves. (I5, 57-63)

Often the family was involved with the hotels’ design and decoration. Family members

provided the ideas, which were discussed at family meetings. Afterwards, the hotels were

designed according to what the family had agreed and the family members also helped to

build the hotel (see section 5.4.1). The design and decoration of the hotels would relate to

family memories and stories. Although the hotels were renovated, they were meant to look

unchanged e.g. the renovation was done only to make the guests more comfortable, such as

by adding bathrooms to the original bedrooms. The building and rooms were designed and

decorate to be the same. Therefore, the hotels were similar to the home the respondents used

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to live in, which would remind the respondents of their memories of the family. The quotes

below demonstrate that the family was involved in the design and decoration of the hotels:

“No (my hotel was not buildings). My family doesn’t like it. I don’t like the hotels that are just

buildings. I feel that it should not be like that. Here, guests have to be able to experience nature. There

should be a lot of trees. Here, hotel owners who have not much land, they build buildings. We don’t do

like that. It’s personal taste. And it’s because my brother is an engineer. He wants it to be good. He

picks materials. He wants to do things. He wants to do it. (Her brother didn’t build the hotel like a

building).” (I17, 219-226)

“When we decided to run a hotel and had an idea, we had a family meeting. We’re a family business.

I’ve my aunts, er…, my brother, my mum who love to design. We didn’t hire anyone. We thought about

it ourselves.” (I16, 78-81)

Historical stories and traditional culture are important features of boutique hotels. According

to the findings, two hotels were renovated historical buildings and the historical information

about the buildings was included in the hotel websites. Four hotels were renovated from old

houses that captured the old Northern style architecture and the lifestyle of local people.

However, twenty boutique hotels were newly built. Nevertheless, nine of these hotels

combined modern style with Northern style architecture with Northern stories in their design

and decoration. The respondents wanted to show the beauty of old local culture but at the

same time, they wanted the hotels to blend with the present surroundings.

The northern architecture and stories appeared in the hotel features and building details, such

as the roof, windows, and walls. The buildings or some elements of the hotels were made

from wood. Some of them were even built with teakwood which is rare to find and was used

to build houses in the past. The hotels were designed and decorated according to Northern

stories, including the people’s lifestyle, the town and architecture in the past as well as the

hotel location and the local community e.g. some respondents stated that their hotels were

situated in a community which was composed of several religious places. The people lived

together peacefully. The respondents used Northern products for the decoration e.g. the hotels

had beds, tables, lamps and other room decorations which were made in the Northern area

and the decorations were crafted in the Northern style. The hotels also had Northern style

service e.g. one respondent stated that she welcomed her guests in the Northern Thai

traditional style. The hotels also served Northern food and organized Thai traditional events.

one boutique hotel, for example, organized the event “Wai Kru Dab”, which is a Thai

traditional event set up to respect teachers and guests and people who were interested were

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able to participate in the event. Some of the historical features, such as the architecture and

the decoration are difficult to find in the present day. The features were claimed to be

different from other regions. The table 5.3 gives examples of the influence of historical

stories and culture on the features of boutique hotels.

Table 5.12: Examples of Influences of Historical Stories and Culture toward Boutique Hotels

Example of Quotes Hotels Features"Just like I said, the land that I bought had an old house. We wanted to maintain

this house in this old condition. We renovated the house. It’s the main house of

this hotel. And we built more houses. In total, we have thirty rooms. But the new

houses were built to harmonize with the old house. Therefore, the hotel has the

old house style. The name of the hotel is from the appearance of this old house.

Moreover, the location where we built the hotel has a community that has its

history. The outstanding point is that it contains five religious places." (I23, 31-

35)

Historical building and

location stories

"First, I might have to answer lots of questions about why I chose to buy land in

this small alley… I gave reasons clearly about why the hotel was located here. I

want to explain this. This location used to be an old port. In the past, this

location used to have a variety of cultures that I think is attractive. Er... Thais,

Buddhists, Christians and Muslims lived here for many generations without a

quarrel or a conflict. I think that it’s the charm of this place. So this place is

turned into the first boutique hotel to open in this location." (I5, 63-69)

Stories of location and

community

“My hotel isn’t too Northern in style and it’s not too modern in style. It tries to

combine both, to balance both. It is about seventy percent Northern style. What

is Northern style like? If we talk about the building, a historic house would have

high ceilings. This hotel has high ceilings. About the layout of the building, an

historic house would have good air flow. The hotel has this Northern style of

wall. People from other provinces or other countries don’t know about this. This

is the Northern wisdom. When it rains, we can just slide the wall and it can

protect (the building) from rain.” (I14, 205-212)

The combination of

Northern architecture

and modern architecture

"We call ourselves “Northern Siam Style” (Northern Thai traditional style); just

like in the documents I gave you. It’s a boutique hotel with colonial house style.

It emphasises the lifestyle of Northern people. The hotel is newly built but it has

the architectural style of the old days. All the equipment and products are like

things that local people used in the past. Architecture emphasises the variety of

people who lived in this city. They were different from other provinces. It’s the

reason we call the hotel 'Colonia House' rather than hotel or resort.” (I32, 36-

Northern architecture

and Northern people

stories.

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42)

The size of boutique hotel was described in terms of number of rooms that ranged from six to

120 rooms. The chart below shows the number of rooms against the number of hotels: X-axes

represent the number of rooms and Y-axes are the number of hotels.

Figure 5.5: Number of Rooms

1-10 11-21 21-30 31-40 41-50 Over 50

0123456789

10

Number of Rooms

Number of Rooms

Five respondents stated that boutique hotels should have a small number of rooms, explaining

that a small number of rooms could benefit other features of the boutique hotel e.g. small

hotels could provide services that large hotels could not provide. The service of boutique

hotels, thus, was different from large hotels. The respondents believed that the employees

could serve the customer better than large hotels as the employees could pay more attention

to the guests and could have a more intimate relationship with them. Thus, the guests would

be more satisfied and impressed by the hotels. A small hotel is also more secure than a large

hotel because the employees remembered their guests and could take care of them.

"Yes, it doesn’t look safe (a building that has many rooms). People stay but they don’t feel warm. It

feels like that you just come and then you go. But here, you come and you come back again. They have

to feel impressed. When they go home, they tell others and they come back again. I want it that way.

Guests smile when they go out. It’s not like you come and do not have any relationship and you go.

That happens if there are many rooms. It can’t take care of all the guests. People ask me that why my

second hotel has fewer rooms than the first one. I say that I did not think much about business but this

makes me happy. I feel tried but I am happy." (I19, 162-167)

"The reason we choose small size is because service is the most important thing in hotel business,

right? Service is the ability of staff to take care of guests. One more thing is about the control of the

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hotel's quality. If it’s a city hotel, big size, around thirty to forty rooms, it’s like people don’t care about

each other. Guests just come to sleep. But here, we emphasise that we want guests to rest, and feel at

home." (I9, 32-37)

Two respondents argued that the number of rooms should not be used to define boutique

hotels. According to the findings, there were two hotels that had more than a hundred rooms,

but they still called themselves a boutique hotel. Boutique hotels are described in terms of

features such as the design and decoration and the hotels’ services and atmosphere. These

features are more important than the number of rooms. On the other hand, there are small

hotels that should not call themselves boutique hotels. Thus, the number of rooms alone

cannot define a boutique hotel.

“Boutique must… It may be a hotel that can be small or large size. It may have unique style or service.

It has selling points or has designs, something like that.” (I11, 9-10)

“…Because most people said that a boutique hotel is a small hotel, but I don’t think that is true. If it’s

a small hotel but it doesn’t have the part that shows itself, its identity, it should not be (a boutique

hotel). It has to have its identity to call itself a boutique hotel.” (I14, 185-188)

5.6.2. BOUTIQUE HOTEL ATMOSPHERE (BHA)

Twelve hotels presented themselves as a home. They wanted their hotel to be similar to a

home more than a hotel and they wanted their guests to feel as if they were staying at home.

The features of these hotels were similar to a home e.g. two hotels had a library and had

corners where guests could sit and relax called small living rooms. The hotels had an

atmosphere of informality. One respondent stated that her guests could come down and have

breakfast in pyjamas. They should feel relaxed in her hotel. Nine hotels had only a few

facilities and services. The respondents preferred their guests to find other services in the

community or the city centre, as this would make the hotels similar to a home.

“This is a library. I collect old books. For example this one, it is a first edition, Thai dancing, history of

Burma. They are very rare, difficult to find. (The next room) this is a showroom that guests can visit.

This is my stuff, ancient swords. I like others to see them. People come to take pictures. They often ask

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to visit and take photos. I also organized a sword event. It is called “Wai Kru Dap” It was fun. I

dressed up. I wore a Lana suit (Northern traditional suit).” (I2, 264-265, 306-309)

"We don’t provide a full service like a hotel, but we provide things which will make guests want to

come here. What are their needs? How can we be friends (with guests)? This is like staying at home,

something like that. But it’s not a home, it’s a hotel. But it provides the atmosphere which is like that (a

home)." (I22, 38-41)

"I didn’t have any experience about providing accommodation before. When I started to manage, I

didn’t know about the hotel system. I had to learn it. I do it myself. I do it like family. I train staff

myself. We live like a family. We don’t have many rules. There is no marketing. We welcome guest as if

they are staying at our home. Guests here are foreigners. They like it because it’s not like a hotel. It’s

informal. We emphasise the concept of home. Most of the guests are returning guests. But Thai guests

don’t like here." (I27, 19-24)

The respondents treated their guests like family members or friends and the relationship with

the respondents and their guests became closer when they often chose to stay in the hotel.

They knew the guests’ likes and dislikes. One hotel cooked a special meal for their regular

guests and attended the guests’ dinner. However, it was found that only minority of the

respondents had a close relationship with their guests (two respondents).

“Most of the guests here know my father and my mother. They have direct experience with the owners.

It’s because sometimes my father cooks for them. They are close. Most of the guests are returning

guests because we know each other. We can talk and have fun. We have a friendly atmosphere…. My

mother lives here but my father lives in the Northern and Central area. He will come here often in high

season. It’s because he has to do contracting job that he has to live there. My brother, he builds roads.

They are family businesses.” (I17, 145-149, 192-195)

In the boutique hotel, services are mainly delivered by the employees. The respondents

encouraged their employees to approach the guests and stated that communication between

the guests and employees was important so the guests would not feel like strangers and would

feel comfortable to make enquiries. Therefore, the employees were encouraged to engage in

small talk with the guests. Conversations occurred when guests arrived and whenever it was

appropriate e.g. the employees would greet the guests and they sometimes asked the guests

about their day. The employees should show willingness to respond to guests’ enquiries, but

if there was an unusual request, the employees should report it to the respondents. The

employees would treat the guests like members of the family or friends, with respect.

“Our employees must change their ideas. Employees who work in 5 star hotels with ten or twenty

floors are different from employees who have to really serve guests. In our hotel, we have to give

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employees the new idea that this is a boutique hotel. Boutique hotel means employees have to behave

familiarly with guests. The hotel has an atmosphere, building, and decoration similar to a home. One

more thing which will make guests be familiar with the hotel is the intimacy and friendliness between

the guests and the employees.” (I20, 25-31)

The respondents preferred employees with no previous experience in a large or chain hotel.

They stated that employees with previous experience were used to a particular style of work

from other hotels and it would be difficult to change their work style. Moreover, employees’

personality was more important. They had to be willing to serve the guests and they had to

have a good attitude and be happy to work in a boutique hotel. The respondents trained their

employees themselves e.g., the respondents told their employees about the hotel stories and

about the characteristics of their hotel, as well as their expectations. They taught their

employees how to welcome guests and to communicate with them. One respondent taught

their employees to speak English, so they could communicate with guests.

Eleven respondents had a close relationship with their employees. The respondents knew

their employees’ background and they knew about their lifestyles, their work problems and

their life problems e.g., one respondent stated that his employees asked his advice about their

life situation. Another respondent explained that he knew his employees very well; he knew

their nickname and even knew what size of shirt and trousers they wore.

The respondents treated their employees like members of the family. Equally, the employees

also treated the respondents like members of the family. One respondent stated that he was

called ‘father’ by some of the employees who recognized the hotel as their second home, and

the respondents were pleased that the employees loved their hotel. The hotels had a low rate

of employee turnover.

"I feel tried, but it is a challenge. But I’m lucky that my employees are quite... er… understand me. It is

hmm… what to say… we are together for a long time. We understand our hotel principle. I live with

this principle. It isn’t only about sharing with guests. For me, only my family have moved here, me, my

wife, and my kid. I don’t have other relatives here. My parents come here sometimes. I have a house

but I don’t have relatives. Therefore, here they are like my relatives. My employees, sometimes, they

describe me as parents of this hotel. It’s a good feeling. I like to create an organisation that shares. We

do what makes us feel comfortable. In the end, I think they think this is their second home. They take

good care of guests." (I5, 222-230)

"I am a manager since the hotel first opened. Ninety percent of all employees, who are with the hotel

since the opening, are still working here. We didn’t have lots of change. It’s because the employees

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here - we have around thirty two to thirty three people - are still the same group as when the hotel

opened." (I20, 101-105)

The respondents trusted their employees to take care of guests, delivery services and do

office work. They also gathered information and reported to the respondents. The respondents

communicated with their employees and knew about the guests via their employees. If there

was an unusual problem, the respondents would solve the problems with the employees. The

respondents stated that the hotel was successful because of their employees who were a

crucial component of a boutique hotel and employees’ loyalty was important to boutique

hotels.

"About my employees, I take care of them. I’m glad that I have these young employees to take care of

my guests. They have ‘service minds’ which I didn’t have that much. I might not directly deal with

customers. It’s because I know myself, I’m a seller. I know what I want, and who I have to use. If I

interfere, it might not finish well. I might pick a quarrel, something like this. So I think about who can

help me. And these young employees, they are nice, have good negotiation skills and good behaviour."

(I22, 142-146)

"I’m lucky to have these employees. My gardener is doing it (hotel maintenances). He is a kind of

person that I don’t have to say anything to. If he sees them, (things need to be fixed), he will do it for

me. I’m lucky. And he loves this place. It is like... I tell employees that the place is like their home. If

they do things well, there will be customers. It’s their income and they understand." (I2, 330-333)

5.6.3. VIEW OF BOUTIQUE HOTEL (VBH)

Not all the respondents called their hotels a boutique hotel. Eighteen respondents stated that

their hotels were boutique hotels, while 14 preferred to describe their hotel in other terms,

such as homestay, resort in town, HIP hotel (Highly Individual Place), lifestyle hotel, bed and

breakfast, design hotel, luxury hotel, resort or guest house. These respondents stated that the

definition of a boutique hotel did not match their hotels e.g. some respondents thought that

boutique hotels should have many facilities but their hotel did not have many facilities or that

boutique hotels should have a full range of services but their hotel provided only a few

services. The respondents preferred other terms because they described their hotel better. The

quote below was an example of a respondent who called her hotel a bed and breakfast:

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“Here… When the hotel opened… I didn’t call it a boutique hotel. I called it a bed and breakfast. It’s

because… It is like in England, in Stratford. There are small houses open for accommodation. My hotel

is like that. It presents the real lifestyle of people… If talking about a boutique hotel, it has to have full

options. It isn’t like a B&B, like this. A full option hotel means that it has to have full services, full

service in the room… Er… has full facilities. Right now our facilities are not like a hotel. We do not

have a refrigerator... Therefore we do not do a hundred percent service (full service). So the hotel is

not (boutique).” (I12, 26-29, 118-123)

Six of the respondents stated that they did not know the definition of a boutique hotel, as

boutique hotel definitions were taken from the Western context, so they were unclear about it.

Moreover, the term, boutique hotel, was used by many types of hotel e.g. some chain hotels

called themselves boutique hotels and small guesthouses also called themselves boutique

hotels. The term was too widely used. These were the reasons why the respondents did not

like the term.

“What is a boutique hotel? What is it? What is not a boutique hotel? There is no clear definition…

Foreigners define boutique hotel, they do not… they do not have a clear definition of a boutique hotel.

I think that Thai people just use it. Somebody said boutique hotel has less than 30 rooms? This is not

right.” (I3, 164-168)

"Actually, the word boutique or boutique hotel is a word that I don’t like. I think it is a strange word.

When I hear it, it is like… It’s a word that actually is not suitable to use with hotel. When we translate

the word boutique, it is not... (The owner makes gesture that he does not like the word) but so many

people use it, right? Actually I don’t want to use this word. I want to use local hotel more than

boutique hotel. The word is weird." (I2, 139-142)

Although the respondents did not want to call their hotel a boutique hotel, they used the term

to advertise their hotels. They used boutique hotel on their hotel websites where it was stated

that the hotels were boutique hotels. Some of these hotels were members of boutique hotel

group. They gathered together with their friends and created a website called ‘boutique hotel’

to promote their hotels. Some of these hotels participated in a boutique hotel competition.

Also, other people recognised these hotels as boutique hotels e.g., the chief of the Northern

sector of the hotel association stated that these hotels were boutique hotels. The respondents

revealed that they used the term ‘boutique hotel’ only for marketing purposes, as they

believed that guests would recognize the word more than other terms.

The respondents play a role in preserving local traditional culture (twelve respondents). Local

respondents were proud of their Northern tradition and culture and they wanted to maintain it.

The respondents stated that the hotels’ design, decoration and service were all intended to

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preserve their inherited culture e.g. the hotels provided Northern style services and served

local food, while the employees spoke the Northern dialect. Thus, the hotels provided

services which truly presented the characteristics and lifestyle of Northern people so that,

tourists could truly experience the local culture through the hotels. The respondents stated

that they did not want the culture to disappear and that their boutique hotels could help

preserve the culture.

Non-local respondents cherished the local architecture. Those who bought historic houses

developed the houses to fit with the culture and community of the area and those who built

new hotels wanted their hotels to capture the local style of architecture. They paid attention to

the hotel design and decoration and they studied local historical stories, so that the hotels

were infused with historic stories and local architecture. It was discovered that the non-local

respondents strived to preserve the local architecture. The following quotes are examples

from both local and non-local respondents.

“The welcoming here is different from in other hotels. It’s because here is like… like the real local

people. But it’s not too conservative. It’s like real local people. It’s because we do not rush things. We

don’t do things too precisely. We don’t like five star hotels or other general hotels. When guests come

in, it’ll like local welcome, smiles. But it doesn’t like... what it calls... Pattern (Robot).” (I19, 129-135)

“My motivation is the pride of being a local person. I would like people who come here to be

impressed. I want to create their impression, so I want to present them with the idea of what Northern

Thailand is. People who visit here go back and feel impressed.” (I14, 10-11, 22-23)

“Actually this building is an antique building. We renovated and adapted the building to be exactly the

same. It’s the concept of the hotel. It’s similar to a hotel that is situated in central Thailand (it was a

historic house which was turned to a hotel). If I got a house like that, I would like to preserve it by

renovating and adapting it. I thought that this old house could be maintained through the hotel income.

When starting a business, people might think about business profit, how many years they get return on

investment. For me, I don’t think about that at all. I only think that my hotel will become something for

Northern people to be proud of. I want visitors to feel impressed during their visit.” (I10, 11-20)

5.7. CHAPTER CONCLUSION

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The chapter indicates the key findings of entrepreneurial motivation, business growth and

boutique hotel. Each key finding was further explained providing evidence from the

investigation. In terms of entrepreneurial motivation, the findings reveal that entrepreneurial

motivations were connected with social conditions, which are family and friends, and context

conditions, which are destination and type of business. To clarify, the entrepreneurs were

directed by family or guided by friends into entering entrepreneurship. The entrepreneurs

were also motivated by the destination so as to live in the area and were interested of the

culture of the area. They were motivated to establish a boutique hotel because the type of

business fitted their lifestyle. It can be concluded that the discovered motivations were non-

profit motivation and the entrepreneurs were dominated by these non-profit motivation into

entering entrepreneurship.

In terms of growth, the majority of entrepreneurs grew and had planned to grow their

business. To grow, the entrepreneurs focused on growth strategies such as increasing the

number of rooms or building new hotel or improving services. It was found that the business

growth was mainly encouraged by non-profit reasons which are concerned with

entrepreneurs’ lifestyle and the family. Although there were the entrepreneurs that grew or

planned to grow business to maximise profit, they were the minority.

Finally, boutique hotels in Northern Thailand showed differences in their design and

decoration due to the unique ideals of each owner. The important features of the boutique

hotels were concerned with historical stories and tradition culture. The boutique hotels’

atmosphere was stated to be similar to a home where the owners had close relationship with

the employees and services were mainly delivered by employees. Although boutique hotels

benefited from a small number of rooms, it was argued that they should not be defined only

by this feature. Finally and significantly, the entrepreneurs emphasised the role of boutique

hotels in preserving and maintaining the local culture. This was stated to be one of the

primary purposes of the boutique hotels.

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CHAPTER SIX: DISCUSSION

6.1. INTRODUCTION

The findings reported in Chapter Five are discussed in this chapter. The discussion is

organized under the three theoretical themes this study has investigated. The first theme is

entrepreneurial motivation, in which there are four key issues: the dominant role of family,

the role of networks, the attractiveness of the destination and influences of business type. The

second theme is business growth, where the key discussions concern profit driven versus non-

profit driven growth. The final theme discusses the definition of boutique hotels.

6.2. ENTREPRENEURIAL MOTIVATION

In this section, three discussion issues are directly related to the equivalent findings. They are

family influences (FI), attraction of destination (AD) and type of business (TB). Unlike the

other findings, friends’ encouragement (FE) did not provide strong evidence of

entrepreneurial motivation. Friends did not directly motivate the establishment of the

business but rather offered additional support to the entrepreneurs. Since friends’

encouragement did not contribute to entrepreneurial motivation, it is instead discussed in

terms of entrepreneurial networks. This section is organised according to the findings in

Chapter Five. Firstly, the dominant role of the family is discussed. Secondly, it states the role

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of networks. Thirdly, it debates the attractiveness of the destination and finally discusses the

influences of business type.

6.2.1. THE DOMINANT ROLE OF THE FAMILY

Evidence in section 5.4.1 demonstrated that previous literature appears to overlook the

importance of family factors in creating a business e.g. Shane et al. (2003) strongly agreed

that entrepreneurial motivation must be studied to enhance the understanding of

entrepreneurship. However, the authors proposed that the studies of entrepreneurial

motivation should focus primarily on the individuals who make the decision. Therefore, the

research should emphasise on the studies of entrepreneurial characteristics which were

believed to influence the decision to engage in entrepreneurship. It was confirmed by Ulhøi

(2005) that the majority of previous research has actually concentrated only on the

characteristics of the individual. Although Naffziger et al. (1994) and Benzing and Chu

(2009) believed that family had an influence on business creation, the researchers did not

provide strongly evidence to support the idea. Naffziger et al. (1994), e.g. provided little

evidence of family characteristics that they thought could influence the decision to become an

entrepreneur without empirical confirmation. Benzing and Chu (2009) identified family as a

factor which influenced the decision to enter entrepreneurship. However, it was only assumed

that this was because the investigated owners came from the culture that had strong family

roots. The findings of this research, discussed in 5.4.1, however, demonstrate that family was

indeed crucial for the establishment of a business.

The role of family in business creation seen in this study is directive and not facilitative, as

the respondents were directed by the family to enter entrepreneurship (10 respondents). The

idea of business was discussed within the family and the decision to start up the business was

a family decision. The respondents agreed to the decision, although it meant they had to leave

their employment or other business (8 respondents). The findings are incongruent with

previous literature that found that the role of family towards entrepreneurship was to facilitate

the entrance to entrepreneurship. Morrison (2001), for example, discovered that family, as a

supporter, contributed to entrepreneurship, by providing a supportive social and economic

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infrastructure. In Kenya, South Africa, Australia and North America, family was a supporter

in enabling access to funds and marketing (Morrison, 2000). In the UK, family is indeed very

important in assisting the creation of entrepreneurship (Anderson et al., 2005). Family as a

supporter to entrepreneurship is actually confirmed globally.

In this study it was found that the family financially sponsored the establishment of the

businesses (6 respondents). This is explicit when three young respondents who had just

graduated from university create a business using their parents’ funds. The family also

provided non-financial sponsorship; for example, it may well provide the business idea. The

decision to create the business, the type of business and the type of hotel were the product of

the family’s ideas or the parents’ dreams. The GEM study in 2002 found that Thailand was

one of the countries where financial support from the family was rated the highest (Astrachan

et al., 2003). Previous studies have found that family sponsorship helped generate

entrepreneurship (Morrison, 2000), by helping an entrepreneur to feel comfortable and

reducing the perceived risk (Astrachan et al., 2003).

One of the reasons that the family dominates the establishment of business is Thai culture.

The respondents were willing to accept the directive of family as this is congruent with Thai

culture. The role of family in Thai culture is very important. Children are very close to their

parents and they live together, even after children graduate and beyond. Children are taught

to respect their elders from a very early age and parents’ guidance is expected to be followed.

This is recognized as a way of giving respect to parents and older generations. Family is more

important than a job and Thais will follow the careers their parents want them to have

(James, 2010). The younger generation are attached to their parents and often ask for their

advice and approval. Family discussions occur frequently during meals as Thai families try to

have their meals together as often as possible and it is a key time for information sharing

(Youth For Understanding, 2013). Aldrich and Cliff (2003) stated that this interaction with

parents can lead to the instigation of a family business.

Thais are characteristically reluctant to accept change, are highly risk averse and avoid taking

high risk jobs (Hofstede, 2014). These characteristics were previously assumed to impede the

entrepreneurial process (Praag and Cramer, 2001). Naffziger et al. (1994) believed that

family and entrepreneurial characteristics interplayed in encouraging new business

development. The present research reveals that family factors appear to override the

individual’s entrepreneurial characteristics, in that although Thais are identified as having

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characteristics that impede entrepreneurship, it reveals that the family appears to encourage

business formation. The above discussion suggests that an individual can become an

entrepreneur without the foundation of the commonly accepted characteristics such as being

risk takers and instead family becomes the key factor in encouraging entrepreneurship. These

results contradict the previous literature from this psychological perspective that

entrepreneurial characteristics encourage the establishment of entrepreneurship.

Previous literature agrees that the family is a factor in encouraging entrepreneurship. Basu

(2004), for example, investigated ethnic entrepreneurs and found that family background

affected entrepreneurs’ aspirations and Kellermanns et al. (2008) discovered that

entrepreneurial behaviour could be influenced by family. In a society in which family has a

significant impact on the action of the individual, the family factor may override the

individual’s entrepreneurial characteristics. This discussion significantly demonstrates that

researchers cannot focus only entrepreneurs as individuals. Social factors such as family must

be considered in the investigation of entrepreneurial motivation.

6.2.2. THE ROLE OF NETWORKS

The research results do not present networks as a dominant area of the findings. However,

previous research into small businesses has revealed an important aspect of networks in

relation to entrepreneurship, showing that entrepreneurs connect to different types of

networks within different contexts. Ioannides and Petersen (2003), for example, found that

tourism entrepreneurs in Denmark cooperated informally with other business owners and/or

organisations in relation to marketing, overflow booking or package tours. Lynch (2000)

discovered that homestay entrepreneurs in Edinburgh were involved in a range of networks

for their business operations, such as guests, neighbours and corporates. Fadahunsi et al.

(2000) found that ethnic entrepreneurs use personal and community based networks but they

have a very low level of start-up business advice and support from agencies. Dodd et al.

(2002) found that family and friends are networks of Greek entrepreneurs. The results of this

study show that the respondents might not depend significantly on the various support

networks which were found by Ioannides and Petersen (2003) and Lynch (2000). In this

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research, family and friends were found to represent an important network for the

respondents whose lives are private and limited to friends and family. The respondents are

reluctant to be introduced to new networks. For instance, they are not interested in associating

with marketing agencies or advertising websites (see section 5.4.3). They even have little

direct contact with customers. Contact occurs only when there is a problem or the

respondents are approached by the customers (see section 5.4.4). This implies that it is not

easy for outsiders to get acquainted with these respondents. Similarly, they are reluctant to

join external groups, resulting in a lack of diversified networks.

The evidence in section 5.4.1 and 5.4.2 demonstrated that two important support networks in

establishing and operating a boutique hotel business are friends (7 respondents) and family

(10 respondents) who both initiate and support business ideas. This support may be in the

form of family providing funds for business formation or family members and friends

holding positions which can benefit the business. They also share business information and

solutions for business problems. The relationship between friends and the respondents started

before the business was established. The respondents are connected with friends and family

through social relationships and interactions. These social activities are not initiated for

business purposes but, nevertheless, useful business information is brought up during these

interactions. This has resonance with the previous literature; it has been found that network

membership was not solely for the purpose of gaining profit (for example, Uzzi, 1996; Hanna

and Walsh, 2008) and that family and friends represent an important network for

entrepreneurs (Dodd and Patra, 2002; Greve and Salaff, 2003).

One of the reasons that the respondents do not depend significantly on various support

networks such as found in the studies by Ioannides and Petersen (2003) and Lynch (2000)

may be due to Thai culture. Hofstede (2014) found that for Thais, personal relationships are a

key factor in conducting business, although Thais will not openly discuss business on the first

meeting. Kwintessential (2013) stated that Thais develop relationships slowly, so it takes

several meetings before the relationship flourishes. Thais like to do business with people they

respect. Indeed, respect and courtesy, which take time to be developed, are expected in

business dealings. Non-verbal communication is more important than verbal communication.

Lockett et al. (2012) stated that social relationships were important for entrepreneurial

networks, while Dodd and Patra (2002) believe that it is likely that national culture might

interfere in entrepreneurial networking and here the Thai characteristics appear to impede the

respondents from having a wide range of networks.

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6.2.3. THE ATTRACTIVENESS OF THE DESTINATIONS

The literature on entrepreneurial motivation overlooks the importance of destination as an

aspect of entrepreneurial motivation. There is little previous evidence that focuses on this

factor although some previous research in hospitality and tourism suggests that the

attractiveness of the destination was one of the motivation factors that could drive an

individual into entrepreneurship in this field. Entrepreneurs could be lured by destination to

make a profit. They could also be lured by destination for non-profit reasons, such as good

weather (Getz and Carlsen, 2000). Therefore, destination could attract both lifestyle and

profit oriented entrepreneurs. The evidence in section 5.4.3 reveals that destination is one of

the important entrepreneurial motivations and that the majority of the respondents were lured

by destination for non-profit reasons. This research evidence emphasises the fact that non-

profit reasons are more important than the profit motive.

The decision to become an entrepreneur in this area of Northern Thailand is influenced by the

attractiveness of the destination (27 respondents). There is some evidence in the literature that

the context of the destination, such as good weather and an attractive landscape might

motivate individuals to become entrepreneurs (Getz and Carlsen, 2000). According to

Ioannides and Petersen (2003), entrepreneurs decided to move into a new area and created

businesses there because they were attracted by things such as the local arts and crafts and the

low cost of living. The findings of this study show that living conditions such as good

weather, the variety of restaurants, living expenses, the safety of the area, the local

architecture and art, and the community and people in the area are all taken into

consideration. Living conditions appear to be vital. This might be because the respondents

have decided to live in the area. Architecture and art are important because they are related

to the personal interests of the respondents and form some of the features of the hotel. Local

respondents prefer to do business in a community they are acquainted with, while

respondents from outside the area felt welcomed by the people in the area and community,

increasing their desire to move into the community.

The attractiveness of the destination appears to be more important than the opportunity to

maximize profits. Indeed, the respondents recognized that there were other areas in which

better profits could be generated. Figure 6.1 shows that Chiang Mai, the focal province of

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Northern Thailand and where most of the respondents (27 respondents) are situated, has

nearly the lowest hotel occupancy of the main tourist destinations in Thailand (Mahtani,

2013), while other provinces, situated in different regions, have better rates of hotel

occupancy. Nevertheless, the respondents chose to open a business in Northern Thailand.

This appears to contradict section 2.3 that states that entrepreneurs are motivated by profit

motive. In this study, the respondents were also interested in other factors such as their living

conditions and local community. The results are incongruent with Chou et al. (2008) who

suggested that hoteliers chose hotel locations principally to sharpen their competitive edge.

Figure 6.6: Hotel Occupancy, Annual Average (%)

Regions: S = South, C = Central, N = North

Source: Mahtani (2013)

This research does not investigate the development of destination but the findings indicate the

relationship between the respondents and the destination. While Butler’s Tourism Area Life

Cycle (TALC) (1980) showed development of destination, Russell (2006) stated that

entrepreneurs play a significant part in this TALC model and clarified that a variety of

entrepreneurial activities can impact the shape of a destination. Similarly, the respondents in

this study played a part in benefiting the destination e.g. boutique hotels are recognized as a

tourist attraction in their own right (Bangkok Biz News, 2006). Some of the respondents

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Phuket (S)

Bangkok (C)

Pattaya (C)

Chiang Mai (N)

Samui (S)

72

62

62

53

50

64

52

57

47

50

2010 2011

purposely used their businesses to develop the destination. They stated that boutique hotels

attract tourists to the destination and believe that because of their business, the destination has

developed.

Butler (1980) did not investigate entrepreneurs in the development of a tourist destination,

while Russell (2006) stated that destination attracts profit entrepreneurs, as the increasing

number of tourists presents economic opportunities and entrepreneurs saw the need to

provide businesses and services. In this study, the findings reveal that the destination attracts

non-profit respondents who feel that the destination is their home and their community and

they desire to do well for their home. Operating the business and services can contribute to

the area e.g. the services and features of the hotels are designed to preserve the culture and

architecture of the destination (see section 6.4.1). Ateljevic and Doorne (2000) also

discovered that non-profit entrepreneurs benefit the community. However, the present results

are incongruent with Williams et al. (1989) who claimed that entrepreneurs focused on non-

economic business motives and this restrained the development of tourism destinations or

regions.

The results reveal that public organisations might not play a significant role in the

development of the destination. The respondents believe that their business is situated in a

tourist destination that is still underdeveloped. Their direct personal experiences with the area

drew them to create the business, with friends and family providing a key stimulus to the

formation of their business and the respondents believe that the destination is being

developed as a result of their business. Johns and Mattsson (2005) found that destinations

could indeed be developed by entrepreneurs without the help of public organisations. The

present results are, however, incongruent with some previous studies. Evans et al. (1995)

believed that destination development was usually by public sector tourism authorities and

Chang and Teo (2009) found that it was public organisations such as the planning authorities

that encouraged boutique inns in both America and Singapore.

This study reveals that destination development by the public sector is needed. As one of

Thailand’s most popular destinations (see section 1.3), the majority of the businesses

depended only on the advantage of the destination, in particular the non-profit motivated

respondents who reject a profit-driven approach and do not conduct any marketing activity.

One respondent stated that destination promotion should be encouraged. Some respondents

were concerned about the number of tourists and the oversupply of hotels in the area, which

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caused intense competition in the market. Indeed, one respondent had already left the

business because of this concern. Other circumstances can also negatively impact the

destination, such as the recent coup d’état and serious air pollution caused by the dangerous

level of smog in Northern Thailand every year between February and April (Gebhart, 2014).

Maniukiewicz et al. (1999) believed that the assistance of the public sector was required in

developing the economics of a destination.

6.2.4. INFLUENCES OF BUSINESS TYPE

Previous literature has assumed that entrepreneurs entered the tourism industry because of

low entry barriers and their inherent interest in its operational context (Szivas, 2001).

Evidence in section 5.4.4 confirmed that low entry barriers (11 respondents) such as ease of

entry and being affordable influenced the decision to become entrepreneurs (9 respondents).

However, while the type of business which was also identified as an important motivation

drove the respondents to create the business in the first place (7 respondents), it is the appeal

of the hotel’s operational context which inspires the respondents to stay in the business (9

respondents).

The respondents viewed hospitality and tourism businesses as similar to other businesses in

terms of the business operation. This might be because the majority of our respondents did

not have experience in hotel operation but they did have experience of other business

operations. Many had a university degree, with almost one third of the respondents having a

university degree in the business field (see section 5.2). This contradicts some previous

literature in Western countries which found that entrepreneurs in the tourism sector had little

experience or training in business (for example, Williams et al., 1989; Ioannides and

Petersen, 2003). This study is congruent with previous literature in non-Western countries

e.g. Skokic and Morrison (2011) found that the majority of entrepreneurs in Croatia had a

university education and had previous experience of owning and managing a small business.

Chivu et al. (2009) found that 75% of entrepreneurs in Romania had a university degree. In

this research, the respondents’ expectation was that hotel operation would be no different

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from running any other business and the respondents were not drawn by the appeal of the

hotel operational context in particular.

The results showed that the respondents focused on the ideal of creating and owning a

boutique hotel and further indicate that this is essential for the decision to become an

entrepreneur. In the case of boutique hotels, for example, the respondents could establish a

hotel that captures their positive memories from childhood or travelling and use them as

features of the business. The respondents could enjoy living in their hotel which they referred

to as their home. The design and decoration of their boutique hotels fit the respondents’

interests, so they enjoyed their time designing and decorating their boutique hotel. The

decision to become an entrepreneur was carefully considered, for instance, personal interest

and was not based on economic conditions since the respondents were satisfied with their

other source of income. This is contrary to the findings of previous literature which indicated

that the motivations of entrepreneurs in developing countries (Benzing and Chu, 2009) and in

the hospitality and tourist sectors (Williams et al., 1989; Morrison, 2001) were generated by

negative life conditions.

However, it does appear that the appeal of the hotel operational context motivates

respondents to stay in the hotel business. They appear to enjoy the pleasant working

environment (Szivas, 2001) and their business gave them an opportunity to work in the sort

of atmosphere they prefer. However, and perhaps surprisingly, very few of the respondents

had direct contact with their guests with most of the service being delivered by hotel staff.

Although the respondents said they preferred guests with similar interests to their own, they

rarely socialize with their guests. This partly refutes the suggestion by Getz and Carlsen,

(2000) that entrepreneurs in the tourism and hospitality sector are driven by a desire to meet

new people and engage in conversation.

6.3. BUSINESS GROWTH

This section focuses on business growth. Previous research has provided a variety of views

on small business growth (see section 3.2). The present research proposes that growth in

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small businesses may vary based on the differences in entrepreneurs and entrepreneurship in

different settings. The following discussion reviews business growth in boutique hotels based

on the respondents’ views presented in section 5.5.

6.3.1. PROFIT DRIVEN VERSUS NON-PROFIT DRIVEN

From the findings, the majority of respondents had grown (14 respondents) or had a desire to

grow their business (18 respondents). Very few respondents suggested they had not grown

their business and had no desire to do so.

The previous literature provided various views on business growth. Studies focused on the

growth of employees or entrepreneurial experiences (Churchill and Lewis, 1983) or on the

phases of growth (Vinnell and Hamilton, 1999) or growth influencers (Perren, 1999). In this

research, section 5.5.1 demonstrated that the respondents focus on how their business has

grown and section 5.5.2 on how their business should be grown and both sections show that

the respondents focus on growth strategies. The respondents identified the following types of

growth: the number of rooms, the range of facilities, the building of new hotels, developing

new markets and adding new services. Improving service quality was also referred to as

business growth. Skokic (2010) also found that tourism entrepreneurs considered quality of

service as one of their growth strategies.

Previous research has provided lists of growth influences (see section 3.3), such as influences

from the business environment (see section 3.3.1), small business characteristics (see section

3.3.2), and entrepreneurial characteristics, as well as the attraction of growing profits (see

section 3.3.3). According to section 5.5.3, the respondents can be split into two groups based

on their reasons for growing their business. The first group includes respondents who grow

their business to generate additional profit or profit driven respondents (6 respondents). The

second group includes respondents who grow the business for non-profit reasons or non-

profit driven respondents (19 respondents).

For the profit driven respondents, the growth was conducted to generate additional income.

Therefore, it was expected that the outcomes of their growth would lead to more profit. They

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grow fast to achieve full capacity (Table 5.2). This is similar to previous research such as the

study by Glance (1988) who believed that small firms grew fast because they were motivated

by pecuniary factors and by Hamilton and Lawrence (2001) who found that small firms grew

fast because of the prospect of a commercial opportunity. However, this study found only a

small number of this type of respondents.

The findings for non-profit respondents differ from previous literature, which suggests that

non-profit entrepreneurs are not interested in growth. Penrose (1995), for example, believed

that business growth depended on the pursuit of profit. In the hospitality and tourism sector,

previous research discovered that entrepreneurs who focused on non-economic business

motives constrained the growth of their business (Williams et al., 1989). Getz and Petersen,

(2005) found that only a minority of hospitality and tourism entrepreneurs had a desire to

grow their business. On the contrary, this study suggests that both profit- and non-profit

driven respondents had already grown their business or expressed a desire to grow it in the

future.

The evidence here suggests that growth is not obstructed by non-profit motives e.g. growth is

not impeded by the family factor. Komppula (2004) found that the growth of a family

business can be restricted by the ability of labour from within the family. However, in this

study, the respondents were not reluctant to employ people from outside the family. Indeed,

they made use of a number of different models to allow the business to grow and welcomed

professionals in the hotel field. With many business duties, the respondents manage their

business by hiring professional employees and managers, renting out the hotel to

professionals, or setting up a hotel system that can be run by employees. The findings also

demonstrate that succession of the business to family members may lead to business growth.

The respondents saw the opportunity for growth through passing on the business to family

members.

Again, non-profit respondents in this study show no reluctance to seek out new markets. In

fact, they show the desire to invest in new markets. The growth of new markets is influenced

by the desire to find new target markets that shares similar interests with the respondents. The

findings contradict Ioannides and Petersen (2003) who found that non-profit entrepreneurs

rarely seek new markets.

Some of the non-profit respondents use very similar types of growth strategies to the profit

driven respondents but these non-profit respondents grow their business for different reasons.

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While the profit driven respondents strive to increase rooms in order to earn more profit, the

non-profit respondents might increase the number of rooms to satisfy their personal interests

in such things as décor and design. Table 6.1 shows the growth strategies of the businesses

and the reasons for growth given by the non-profit respondents. The findings are incongruent

with Williams et al. (1989) who proposed that knowledge from an economics perspective

might not be applicable to the tourism and hospitality industry. The findings show that

lifestyle motivated entrepreneurs do not necessarily ignore all aspects of profit. To

emphasise, although the entrepreneurs were inspired by non-profit reasons to grow their

business, the growth is similar to the growth of entrepreneurs who are motivated by profit

reasons. The findings indicated that an economics perspective might be applied to explain the

growth of non-profit entrepreneurs. It is also indicated that entrepreneurial growth is a

complex issue and an attempt to categorise entrepreneurs with a specific perspective or idea

would not lead to understanding of the issue. Therefore the findings supported Simon (1956)

that entrepreneurs should be explained from a mixture of perspectives, which leads to

clarified explanation of the issue.

Table 6.13: Growth Strategies and Reasons to Grow Business (Non-Profit Respondents)

Growth Strategies Reasons to grow (non-profit respondents)

RoomsAdding rooms that the respondents enjoy

designing and decorating

FacilitiesAdding facilities because the respondents enjoy

guests’ satisfaction

New market

Switch to new market that suits the respondents’

lifestyle, so they can enjoy new hotel theme with

new guests

Services

Adding services so the respondents can enjoy

activities which they like, such as Pilates, with

guests

New hotel

Building new hotel so that the respondents can

fulfil the dreams of the family, such as all living

together and being an entrepreneur

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Non-profit respondents assert that the growth process allows the respondents to enjoy their

interests. Some of the non-profit driven respondents made decisions to grow the business

because they had lost interest in just operating the business once it had reached the stage of

business maintenance. They felt content through the process of growth. This is, however, the

opposite of the findings by Peters et al. (2009) who found that one effect of growth was that

the quality of life of entrepreneurs decreased.

Previous literature may overlook the importance of entrepreneurial motivation to growth.

Dobbs and Hamilton (2007) stated that the relationship between entrepreneurial motive and

the growth of small businesses was generally not very strong. There was a lack of empirical

evidence to support the link between entrepreneurial motivation and growth (see section 3.4).

Although this research does not set out to identify the link between growth and

entrepreneurial motivation, it does indicate that profit and non-profit motives are keys to

influencing business growth.

6.4. BOUTIQUE HOTELS

One of the aims of this study is to investigate the views of the respondents of boutique hotels.

Section 5.6 revealed a range of views that both confirm and contradict the existing literature.

The key issues are discussed in the following section.

6.4.1. THE DEFINITION OF BOUTIQUE HOTEL

Previous literature has focused on both the customers’ perspective (Aggett, 2007) and the

managers’ perspective (Lim and Endean, 2008) of boutique hotels. In this study, the majority

of views came from the owners of boutique hotels (29 respondents), which is a group of

respondents who have not previously been considered much. The findings reveal that some of

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their views are similar to those found in the previous literature. Section 5.6.1 presented

general agreement that the design of a boutique hotel should be individual (9 respondents),

with an emphasis on historic architecture and decoration (11 respondents) (Mcintosh and

Siggs, 2005; Aggett, 2007; Lim and Endean, 2008; Chang and Teo, 2009). Section 5.6.2

demonstrated that boutique hotels should have a homely feel (12 respondents) (Rogerson,

2010). Employees should be warm, friendly and flexible, and provide personal service

(Callan and Fearon, 1997; Lim and Endean, 2008). The individual personality of employees

is more important than their hospitality background (Rogerson, 2010).

There are some areas where views differed from the prevailing view. In the discussion of the

number of rooms in a boutique hotel, Anhar (2001) and Hartesvelt (2006) suggested that

boutique hotels should be defined by the number of rooms. In this study, some respondents

believe that the number of rooms is not a vital feature in defining a boutique hotel (see

section 5.6.1). In the sample studied, there were two hotels with more than a hundred rooms.

Few respondents believe that design, decoration and services are more important

characteristics than mere size. This supports Lim and Endean (2008) research who found that

furnishings and individual rooms were more significant than room numbers and Rogerson

(2010) and Henderson (2011) who also found hotels classified as boutique hotels with more

than 100 rooms.

In terms of service, previous literature has focused on the relationship between host and

guest, including the relationships both between owners and customers and between

employees and customers. Good personal service was seen to be created by these

relationships (Lim and Endean, 2008; Rogerson, 2010). This study shows an emphasis on the

relationship between the respondents and their employees (11 respondents) (see section

5.6.2). The respondents treat their employees as members of the family and they trust and

encourage them. The respondents believe that a good relationship between them and the

employees will have a positive effect on the service. This shows that the respondents place

significant importance on their employees. The boutique hotels investigated had low staff

turnover which is congruent with Callan and Fearon (1997). Similarly, Erkutlu and Chafra

(2006) found that trust and encouragement of employees in boutique hotels may lead to

higher managerial and organisational effectiveness.

Despite the historic features of the hotels, previous studies largely overlooked the relationship

between boutique hotels and the role of conservation. In this research, the respondents were

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found to place great emphasis on the role of conservation in boutique hotels (12 respondents)

(see section 5.6.3) that act as protectors of the community and culture. In some cases,

respondents had taken derelict buildings and renovated them to become boutique hotels and

developed them to fit in with the culture and community. Henderson (2011) stated that future

prospects for boutique hotels depended to a large extent on the protection of the built

heritage.

Previous literature tends to overlook the owners’ view of the definition of boutique hotel.

Previous research provided definitions and key features of boutique hotels gathered from the

customers and/or managers’ perspective (Aggett, 2007; Lim and Endean, 2008). The findings

of this study reveal that some of the respondents were uncertain about the definition of

boutique hotel and held rather negative views on the issue (see section 5.6.3). They prefer to

use the term boutique hotel only for marketing purposes and prefer others to call the hotel

using other terms, such as local hotel or city resort. This is congruent with Henderson (2011)

who found that because of problems with boutique hotel definitions, many hoteliers preferred

other terms such as lifestyle or design hotel. Therefore, understanding of the term boutique

hotel varies depending on the context. For instance, in terms of design, in the UK boutique

hotels differentiate themselves using “individual” or “unique” to describe the design of their

rooms. In New Zealand, the owners used their perception of location in the design and

decoration of their accommodation. In South Africa, boutique hotels are found to have luxury

characteristics through their unique standard of decor and design. The findings indicated that

the definition of boutique hotel is because they lack a clear and coherent theoretical basis and

inconclusive. To emphasise, Table 6.2 gives a comparison of the definition of boutique hotel

from three sources: previous literature, boutique hotels in Thailand and the research findings.

Table 6.14 Comparing Definitions of Boutique Hotel

Issues Previous Literature

(see section 3.6)

Boutique in Thai context

(see section 4.6.5.1)

The Research Findings

(see section 5.6)

Design Individual

Unique

Distinctiveness

Local traditional architectural style

Local culture and historical interest

Different design

Contemporary design (combining historical and

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Luxury modern Thai and Northern Thai style)

Telling a story

Number of Room

Less than 25 rooms

Less than 30 rooms

Less than 50 rooms

Range from 6 to 222 rooms

From 2 to 60 rooms

From 4 to 50 rooms

From 10 to 40 rooms

Range from 6 to 120 rooms

Service Service excellence

Individuality

Exclusive

Privacy

High level of personalised attention

Friendly

Helpful staff

Discussed in terms of relationship between staff and customers

Discussed in terms of a ratio of one member of staff per customer

Emphasis on relationship between owners/managers and employees

Other Issues Location

Hotel grading

Hotel facilities

Price Role in preserving local traditional culture.

6.5. CHAPTER CONCLUSION

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This investigation aimed to create a clearer explanation to entrepreneurial motivations of the

entrepreneurs in boutique hotels in Northern Thailand. It has revealed that while family are

seen as supporters, the family in this context took directive role and influenced the decision

into entrepreneurship. The attractiveness of the destination is usually discussed in terms of

economic conditions, however in this context the entrepreneurs were attracted to the

destination because of non-profit factors. The findings indicated that the type of business is

suited to the entrepreneurs’ lifestyle, thus it motivated them to create the business. The hotel

context is seen as a motivator that encourages the entrepreneurs to stay in the business. In

term of business growth, although the majority of the entrepreneurs were driven by non-profit

motivations, the majority of them grew and had plans to grow the business. Significantly, the

findings reveal that the growth of the business was generated by non-profit reasons. Finally,

the findings expose boutique hotel and generate additional key points on the issue. First, a

boutique hotel should not be defined by the number of rooms, since there were other

important features such as the uniqueness of the design and decoration which were generated

by their owners. Second, in the boutique hotels, the relationship between the owners and

employees was emphasised and could lead to managerial and organisational effectiveness.

Third, the boutique hotels played a significant role in conservation in which they maintained

the traditional culture of the context.

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CHAPTER SEVEN: CONCLUSION

7.1. INTRODUCTION

Chapter One, Two and Three, argue that despite various studies on entrepreneurship, they

provide only a partial explanation of the issues of entrepreneurial motivation, business

growth and boutique hotel. There is, therefore, a need for deeper investigation to provide an

insight into these issues in order to generate a better understanding of entrepreneurship. Thus,

the study is purposed not only to identify the variables which answer the three research

objectives but also to explore these variables more deeply and explain these factors. This

final chapter concludes the study by firstly evaluating if the objectives of the study were

accomplished. The next section revisits the research objectives by discussing how the

findings lead to achieving these objectives. Secondly, the study’s contribution to the wider

field of entrepreneurship and more specifically to entrepreneurship in the hospitality and

tourism field is suggested. Thirdly, some possible limitations are discussed and

recommendations for future study are addressed.

7.2. REVISITING THE RESEARCH OBJECTIVES

An important insight into entrepreneurship that can be derived from this research concerns

the fundamental consideration that must be given to the context in which entrepreneurship

exists and is examined. The data here show that entrepreneurship is inevitably involved with

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social conditions such as family, culture, people and history and that these factors can provide

an exclusive clarification into the nature of entrepreneurship, in particular, the issues of

entrepreneurial motivation and business growth. This section presents a summary of the key

findings by revisiting the three research objectives. It emphasises how the findings seek to

answer the research objectives.

7.2.1. FIRST OBJECTIVE AND FINDINGS

(OJ1) “To identify and gain an insight into the motivation of entrepreneurs in boutique hotel

in Northern Thailand”

The first objective is accomplished by three significant findings. First, non-profit motivations

dominate the need for profit. Thus, the majority of entrepreneurs in boutique hotels in

Northern Thailand are driven by non-profit lifestyle motivations that are related to the family

and the desire to live a certain lifestyle. In considering whether these non-profit motivated

entrepreneurs would jeopardize the economic development of Northern Thailand, the

findings demonstrate that the creation and operation of the business is devoted to supporting

the development of the destination that positively affect the economics of the area. Ateljevic

and Doorn (2000) stated that, while entrepreneurs may initiate business to pursue their

lifestyle choice, their businesses are instrumental in the creation and introduction of

innovative products and services, so contributing to the sustainability of the community and

stimulating regional development.

Second, entrepreneurial motivations are inevitably embedded in the context within which the

entrepreneurs exist. Entrepreneurial motivations found in this study are connected with the

culture evidently inherited in Thailand and specifically Northern Thailand. In this research,

an insight into entrepreneurial motivations can be explained by the contextualization of

culture, the relationship of people, the history and the community of the area. The explicit

findings reveal that the insight of entrepreneurial motivation can be acknowledged by the

investigation of the in-depth data and the attempt to understand the hidden meaning of the

factors that motivate an individual to become an entrepreneur (Morrison and Teixeira, 2004).

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The study that considers the historical, temporal, institutional, spatial, and social contexts

helps to provide an understanding of these motivations (Welter, 2011).

Third, the findings reveal that simply identifying motivational factors is not enough. The

evidence here indicates that the results of entrepreneurial motivation can be different in

different contexts. Significantly, although the entrepreneurs were located in a developing

country with serious economic constraints, non-profit motivations are the main driving force

that encouraged the establishment and operation of entrepreneurship. This result is different

from research conducted in other developing countries where economic constraints are also

identified, such as Turkey (Benzing et al., 2009), Kenya, Ghana and Nigeria (Benzing and

Chu, 2009) and Russia (Zhuplev et al., 1998). In this context however, the elements of culture

and community provide a stronger explanation of entrepreneurial motivations. In this

research, the family is identified as dominating the decision to become an entrepreneur where

previous research had only seen it in a supporting role. Furthermore, the research findings

reveal that those studies of entrepreneurial characteristics conducted solely through a

psychological perspective, might not be able to fully explain entrepreneurial behaviour.

7.2.2. SECOND OBJECTIVE AND FINDINGS

(OJ2) “To identify and gain an insight into the business growth of boutique hotels in

Northern Thailand”

Previous research in the hospitality and tourism field has found that majority of lifestyle

entrepreneurs are reluctant to grow business (Williams et al., 1989; Ateljevic and Doorne,

2000; Getz and Carlsen, 2000; Peters et al., 2009). The lifestyle entrepreneurs in this

research, however, do not reject business growth. The findings here reveal that, in fact, the

entrepreneurs embrace business growth because they believe that it could advance their

lifestyle. The growth of the business is not devoted to the purpose of profit but the majority of

the entrepreneurs studied looked for non-profit reasons that are related to the family factor

and the pursuit of a certain lifestyle.

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Whether the entrepreneurs were growing the business for profit or non-profit reasons, they

adopted a similar growth strategy. Thus, the research indicates that it is necessary to

investigate the reasons behind the growth. The research provides a clearer explanation and

could prevent adopting false assumptions about why businesses grow that in turn could

jeopardize the success of the business. This research acknowledges that business growth is

not necessarily encouraged only by profit and non-profit reasons could significantly trigger

the growth of business. Furthermore, the non-profit reasons to grow the business, which are

related to the family and the lifestyle of the entrepreneurs, show remarkable similarity to the

entrepreneurial motivation to establish and operate the business. It is suggested that although

this research was not set up specifically to research the link between entrepreneurial

motivations and the business growth, the researcher should not overlook the importance of

entrepreneurial motivation and its connection to business growth.

7.2.3. THIRD OBJECTIVE AND FINDINGS

(OJ3) “To compile and synthesis the background information about the boutique hotels”

The findings add three significant views on boutique hotel. First, the features of boutique

hotel are connected with the entrepreneurs’ lifestyle. This is clearly linked to the owners’

non-profit motivations. Hence, although some of the features are similar to the previous

literature, they actually are not a consequence of guests’ preferences for a boutique hotel,

rather they are the outcome of what the owners desire. Second, problems with the definition

of a boutique hotel demonstrate that the features of boutique hotel are many and diverse.

These diversified features occur from, for example, each owner, who together with their

family, designs and decorates the hotel using their own ideas and stories. Some boutique

hotels are mainly concerned with cultural and historical features and/or having a homely

atmosphere and/or telling a family story. Therefore, boutique hotels should not be defined by

using only a particular feature, such as the number of rooms. Third, in this context, a boutique

hotel is devoted to the sustainability of its community and culture. It was stated as one of the

primary missions in establishing the boutique hotel. Therefore, research should not only focus

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on the commercial aspect of a definition but also take account of the social aspect of this type

of business.

7.3. RESEARCH CONTRIBUTION

The discovering of entrepreneurial motivation and business growth in this research leads to

the generation of five research contributions. Many studies have investigated entrepreneurial

motivations but they only provide a partial explanation of these motivations. While

entrepreneurial motivations are investigated primarily from three perspectives; economic,

psychology and sociology, it is argued that these perspectives have looked into

entrepreneurial motivation separately and there is no unifying explanation on the issue.

Moreover, knowledge from the economic and psychological perspectives alone cannot

provide insight into entrepreneurial motivations. Therefore, this study has approached

entrepreneurship by recognizing it as a human phenomenon. It is believed that the

explanation of entrepreneurial actions is connected and shaped by the context such as the

social conditions within which it exists. The investigation of insight into entrepreneurship

concerned with these conditions, can offer a clearer explanation. The present findings

contribute firstly to the sociological perspective of entrepreneurship. The evidence suggests

that entrepreneurship is found to be inevitably connected to social factors such as family,

culture, relationships between people, community and history. Entrepreneurship is embedded

in the context as it interacts with and is shaped by its environment. The findings show that

entrepreneurship cannot be explained only through the idea of the entrepreneurs’ rational

behaviour. Therefore, in order to advance the rigorous understanding of entrepreneurship,

researchers need to refrain from the insistence that entrepreneurship is a purely individualistic

practice (Drakopoulou Dodd and Anderson, 2007).

The future of entrepreneurship, as a field, has been significantly debated over the last several

decades as to whether it should develop its own unified theoretical framework or continue

following the mainstream discipline (Skokic, 2010). Bruyat and Julien (2001), for example,

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have explained that the entrepreneurial phenomenon is complex and heterogeneous. The

results of empirical research in this field were derived from different standpoints. They

believed that in order to advance the knowledge, it is necessary to establish theories that

would generate more productive empirical research, in particular, some effort at definition is

needed. Shane and Venkataraman (2000) share a similar idea. They proposed a conceptual

framework that could be used to study entrepreneurship and to advance the knowledge in the

field. However, Gartner (2007) believe that there is no theory of entrepreneurship that can

account for the diversity of topics that are currently pursued by entrepreneurship scholars and

Steyaert (2005) has recommended that researchers should not see entrepreneurship as a

distinctive domain or as having its own paradigm. Gartner (2007) suggests that researchers

could identify the boundaries of their studies and create communities which looked at a

similar set of problems and issues. Steyaert (2005) suggests that entrepreneurship should lie

in the middle, to keep entrepreneurship as it is and connect it to many forms of theoretical

thinking. In this research, its second contribution is devoted to the advancement of the

knowledge in entrepreneurship. Not only does this research demonstrate that the findings of

entrepreneurship are different in different settings, there is also evidence from other research.

Research from across the globe depicts that geographical location also reflects on

entrepreneurship (Kuratko, 2006) and the results of research in entrepreneurship are

diversified (Hisrich and Drnovsek, 2002). Scholars are still debating on the definition of

entrepreneurship and it has never been concluded (Carland et al., 1984; Gartner, 1988). It is

difficult to develop a unified theory of entrepreneurship and it would be difficult to explain

entrepreneurship within a unified position. The results of this research also evidently depict

that entrepreneurship is a dynamic phenomenon and cannot be investigated in isolation from

different factors. Therefore, entrepreneurship can be understood under its dynamic

phenomenon. Research must investigate the depth of entrepreneurship and its phenomenon

by identifying what lies behind the discovered entrepreneurial factors. It is important to

conduct replicate studies in different setting. While every piece of research demonstrates that

entrepreneurship contains an unpredictable mix with positive and negative features, the

research gives some explanation and shows its complexity. The tiny bit of evidence could

lead to unified elements which could be applied across different contexts and provide

opportunities to advance the knowledge in the field.

This reflects on the third contribution that relates to a contextualised view of

entrepreneurship. Previous research on entrepreneurial motivation has identified several

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motivation factors that are used to explain the establishment and operation of a business.

Nevertheless, these studies show a limited understanding of what lies beneath these factors,

which has never been clearly elucidated. The research findings explicitly show that the

submerged meaning of these motivation variables is crucial and needs to be investigated if

researchers want to understand entrepreneurship more seriously (Morrison and Teixeira,

2004). Zahra (2007) stated that research applied to a theory without paying adequate attention

to entrepreneurial phenomena, often lacks rigour and creativity, producing obvious or

inconclusive results. Therefore, this study views entrepreneurship as a human phenomenon

and has achieved answers about entrepreneurship by not only considering the social

conditions influencing entrepreneurship but also showing how entrepreneurship and social

conditions such as the family, the culture and the people interact. The study pays attention to

the context of the investigations as the findings are built on recognizing the influences and

relationships of entrepreneurship and its setting. Finally, it provides vibrant findings on

entrepreneurial motivation by identifying what precisely causes the process of

entrepreneurship. The findings significantly indicate that although previous research has

already enhanced the rigour of research on entrepreneurship, in order to enhance academic

knowledge on this issue, it must be examined through careful attention to the context of the

investigation.

Finally, the present findings are believed to contribute to the body of knowledge in the

hospitality and tourism field in which the majority of entrepreneurs are identified as lifestyle

entrepreneurs, motivated by non-profit motivations such as family and the desire to live a

certain lifestyle. The essential issues discussed among researchers in the field concerning

these lifestyle entrepreneurs include the reluctance to grow the business (Getz and Carlsen,

2000), because this would negatively affect the quality of life of the entrepreneurs (Peters et

al., 2009) and the anxiety that this could jeopardize the level of entrepreneurial activity and

the development of the destination (Williams et al., 1989). This type of entrepreneur has been

seen as a non-entrepreneur whose process of entrepreneurship is opposite to that of ‘true’

entrepreneurs who pursue business growth (Ioannides and Petersen, 2003). This study moves

away from presumptions being made about hospitality and tourism entrepreneurship and

responds to the desire to show how entrepreneurship can be understood (Thomas et al.,

2011). It is believed that, with the consideration of context and importantly an investigation

into the discovered characteristics and behaviour of the entrepreneurs, research would

highlight not only the differences in the results but could also show precisely what determines

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their existence. The findings clearly show that although the majority of the investigated

entrepreneurs are lifestyle entrepreneurs who are driven by non-profit motivation, the path of

their entrepreneurship is similar to that of ‘true’ entrepreneurs who pursue business growth.

Therefore, considering the scarcity of studies in the hospitality and tourism field in

developing countries, which have a different context that includes the economy, history,

culture and relationship of people, this study finally contributes to the knowledge in this

context. This research indicates that the future research should aim at avoiding being

ideologically controlled by the dominant research paradigm in a Western context. Moreover

the knowledge in this field can be advanced if researchers attempt to gain an insight into the

entrepreneurship in the broader social context (Thomas et al., 2011).

7.4. RESEARCH LIMITATIONS

Despite the effort to conduct this research as rigorously as possible and to provide an insight

into entrepreneurship, a number of limitations can be identified. First, the findings

demonstrate that there are some similarities between non-profit lifestyle motivation in

establishing and operating the business and the non-profit reasons that encourage business

growth. Entrepreneurs, for example, create a business because they enjoy spending time

building the hotel. They grow their business because they then enjoy designing and

decorating even more rooms. Previous research believed there to be a link between these two

issues but the link has never been formally clarified. Since this research conducted in-depth

interviews with the entrepreneurs, it provided an opportunity to investigate the link between

entrepreneurial motivation and business growth. It can be argued that a direct investigation of

the link would have generated a better understanding of entrepreneurship in an area of

business growth that is diversified, fragmented, still rare and poorly understood (Hamilton

and Lawrence, 2001).

Second, the researcher was faced with difficulty when approaching the entrepreneurs. She

wasted several days trying to set up an interview appointment by phoning and emailing hotels

and was rejected. Finally, the appointments were made via the assistance of family, friends

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and work colleagues and their connections. Nevertheless, this somewhat limited the

researcher’s opportunity for a diversified sample, in particular, in terms of location. The

majority of the interviews were conducted in hotels in the city center of the focal province of

Northern Thailand. It could be argued that there might be differences between entrepreneurs

in rural and urban areas. Despite this debate, this research had completed its objectives in

providing an insight into entrepreneurial motivation, business growth and boutique hotels.

The argument can be overcome by the setting up future research to enable a comparison

study.

Third, the researcher was faced with the difficulty in conducting in-depth interviews with the

entrepreneurs, in particular for the first few interviews. This was due to the lack of experience

in conducting interviews. It could be argued that interruptions during the conversation could

obstruct the research from gaining the best insight into the information. However, during the

field research, the researcher intently attempted to improve. As the research progressed, it

was apparent that the researcher could more easily conduct and manage the flow of

conversations with the entrepreneurs. Furthermore, the in-depth interviews were conducted

until there was a saturation of data.

It is regretted that this research did not use a background information sheet that could have

been used to investigate the background information of every respondent. It could be argued

that this information would generate additional insight into entrepreneurship by comparing

and contrasting the respondents’ background with the interview information. Nevertheless,

this research examined the background information of the entrepreneurs in relation to its

objectives. The respondents mentioned their background information when it was related to

the research questions. Therefore, the entrepreneurs’ background information was retrieved

directly from the in-depth interviews. The information was used to complete the objectives of

this research.

7.5. FUTURE RESEARCH

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Based on the key findings and limitation of the study, possible future research is

recommended. Firstly, research should investigate the link between entrepreneurial

motivation and business growth. Research in the hospitality and tourism field is dominated by

the belief that lifestyle entrepreneurs avoid committing to business growth. Researchers have

suggested that entrepreneurs were motivated into entrepreneurship because of their concern

for quality of life and that committing to business growth might ruin their lifestyle (Peters et

al. 2009). The findings in this research contradict this. It demonstrates that the business

growth of entrepreneurs in Northern Thailand does not fit with the previous research.

Therefore, it is possible that lifestyle entrepreneurs in this context commit to a different path

in the operation of entrepreneurship. Morrison et al. (2003) warned that the misunderstanding

of business growth might harm the business. Therefore, it is necessary that the link between

entrepreneurial motivation and business growth needs to be further investigated.

Secondly, the majority of the samples in this research were located in city centres and in the

focal province of Northern Thailand. It is believed by some authors that the motivation of

entrepreneurs in the rural tourism and hospitality sectors could be different (Getz and

Carlsen, 2000). Further research into these differences of context could contribute to the

study of entrepreneurship e.g. it could raise the awareness that researchers should also

consider the differences in term of the location of the business. Therefore, questions can be

posed, such as: does the attractiveness of the destination affect entrepreneurs in rural and

urban areas differently? Would the growth of the business be dissimilar in these different

areas? If it is dissimilar how and why would entrepreneurs in the rural area grow their

businesses?

Thirdly, it was discovered from the findings that the numbers of male and female

entrepreneurs are almost equal. This is dissimilar from previous literature which found that in

nearly every economy there are fewer female than male entrepreneurs. Moreover female

entrepreneurs appear to show reluctance to scale their business or to grow their business or to

enter new markets (GEM, 2012a). In addition, female entrepreneurs might be constrained, for

instance, Sara and Peter (1998) discovered that female entrepreneurs are disadvantaged in

financing their business because they were less likely to use institutional finance such as

overdrafts, bank loans and supplier credit. While GEM’s study (2012b), which reported on

gender differences in Thailand, revealed almost an equal number of male (18.3%) and female

(18.7%) entrepreneurs in Northern Thailand, it would be useful to investigate whether

contextual differences have an effect on the issue. Future research can compare the

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differences between Thailand and Western countries. Since a significant number of female

entrepreneurs in Northern Thailand definitely contribute to the economics of the area, future

research should also investigate their motivation for engaging in entrepreneurship. GEM’s

study in 2011 suggested that in Thailand, Thai culture might shape the entrepreneurial role

and gender model.

Finally, the discussion of the research findings in section 6.4.1demonstrates that the

definition of boutique hotel remains chaotic and inconclusive. Although boutique hotels are

not a new type of hospitality business, they have become firmly establish within Northern

Thailand (Untong et al., 2011). They contribute to the economics of the area (Bank of

Thailand, 2008). Moreover, the issue has recently interested scholars such as Horner and

Swarbrooke (2005) who stated that the boutique hotel is one of the most interesting

developments in the hospitality sector. Thus future research can attempt to understand

boutique hotels by comparing them to small hotels that are not marketed as boutique hotels.

In addition, the investigation of boutique hotels in terms of the differences in their operation

and management might lead to the development of a typology of boutique hotels.

7.6. CHAPTER CONCLUSION

Before the final conclusion, this part presents the reflection of the PhD journey on which the

researcher gained value experiences. Firstly, the research enlightens the researcher’s view

toward entrepreneurship. The researcher also recognized the significant importance of

entrepreneurship not only toward the economy but also culture, community and history.

Therefore, it is an honour to be a part of this research field and to generate knowledge that

could contribute to the field. Secondly, it is a great experience to be able to conduct research

in the hospitality and tourism field that has generated a significant benefit toward the

researcher’s home region, her nation and also many nations across the globe. During the

process, the researcher was provided with the great opportunity to get to know the

entrepreneurs in the field, including important people who assist in enhancing the

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development of the field. Experiences from doing research in this field have also prepared the

researcher for her future career, since the university which funds the study is actually in need

of lecturers in this field. Importantly, the researcher is very proud to be able to contribute to

knowledge in the field.

To summarise, this study explored entrepreneurial motivation, business growth and boutique

hotels in Northern Thailand. The study aimed to generate an insight into the three key issues.

It was found that the entrepreneurs were dominated by non-profit motivations and the context

generates the best explanation of these motivations. The findings demonstrate that business

growth can be encouraged by non-profit reason and non-profit motivated entrepreneurs were

keen to grow their business. The entrepreneurs’ view toward a boutique hotel was diversified;

therefore, it should not be defined by using a particular feature and should not only be

recognized from a commercial aspect.

This research emphasises the importance of social conditions toward the explanation of the

existence of entrepreneurship. It is stressed that if research is aimed to advance the

knowledge in the entrepreneurship field, it needs to perceive entrepreneurship as a dynamic

phenomenon and investigate the field considering its context. Finally, the research indicates

that the knowledge in the hospitality and tourism field can be advanced if there is more

research in the broader context.

192

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APPENDICES

205

APPENDIX 1: THE INITIAL LIST OF BOUTIQUE HOTEL INFORMATION

No.

Hotel Name

Source of data

Website Province Rooms Price

(Baht) Telephone Style Type

1 BH1 x www.x.com x 10 None xxxxxContemporary Boutique

hotel

2 BH2 x www.x.com x 20 None xxxxxColonial house Boutique

hotel

3 BH3 x www.x.com x 301500-10000 xxxxx

Contemporary Lanna

Exclusive residence

4 BH4 x www.x.com x None1000-1800 xxxxx

Northern Thai Lanna architecture

Resort & Spa

5 BH5 x www.x.com x 10 None xxxxxSeveral local

designsBoutique

hotel

6 BH6 x www.x.com x 20400-2200 xxxxx

Lanna style Boutique hotel

7 BH7 x www.x.com x 303500-20000 xxxxx

Environment-friendly

Boutique hotel

206

APPENDIX 2: INTERVIEW LETTERS

APPENDIX 2.1. LETTER REQUEST FOR AN INTERVIEW (THAI VERSION)

207

APPENDIX 2.2. LETTER REQUEST FOR AN INTERVIEW (ENGLISH

TRANSLATION)

208

APPENDIX 2.3. LETTER TO CONFIRM STUDENT STATUS

209

APPENDIX 3: INTERVIEW GUIDE

The purpose of the interview

This research study is aimed to explore openly entrepreneurial motivation in creating and

operating boutique hotel in Northern Thailand. Moreover, it aims to generate the

understanding about the impact of entrepreneurial motivation toward the entrepreneurial

activity, focusing on business growth from the entrepreneurs’ viewpoint. Finally, the research

is purposed to explore what a boutique hotel is from the investigating entrepreneurs.

The duration of the interview will be approximately 60 minutes and the interview will be

recorded so that it can be referred back to after the interview.

The interview questions

Entrepreneurial Motivation

1. Please tell me about how you started a boutique hotel in Northern Thailand?

2. Please explain what encouraged you to do this?

Business Growth

3. How do you see your business developing in the near future?

Boutique Hotel

4. How do you see your hotel as a boutique hotel?

5. What do you think about this term?

The implications of finding

The findings will generate a greater understanding of entrepreneurial motivation, business

growth in boutique hotels and the impact of entrepreneurial motivation toward business

growth from the investigating entrepreneurs’ viewpoint. It will also establish the knowledge

about the boutique hotel in Northern Thailand.

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APPENDIX 4: EXAMPLE OF CONTACT STATUS SHEET

No Hotels Hotel WebsiteContact

Name

Telephon

eEmail

Contact

Date

Contact

Status

1 BH1 www.x.com Mrs. X xxxxx x@x.com 9 Aug 12Interview 10

Aug at 4.30

2 BH2 www.x.com Mr. X xxxxx x@x.com 16 Aug 12Interview 20

Aug at 10.00

3 BH3 www.x.com Ms. X xxxxx x@x.com 3 Sep 12Need follow

up 4 Sep 12

4 BH4 www.x.com Mr. X xxxxx x@x.com 4 Sep 12

Send letter

wait for

confirm

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APPENDIX 5: CONTACT SUMMERY SHEET

APPENDIX 5.1. SHEET 1: BOUTIQUE HOTEL INFORMATION

Boutique Hotels Information

Interview (I) Hotel Name Hotel Location Number of

Rooms

Type pf Hotel Year of

Operation

I1 1. BH1 Chiang Mai x Boutique Hotel x

I2 2. BH2 Mea Hong Son xx Hip Hotel xx

I3 3. BH3 Pisanulok xx Lifestyle Hotel xx

APPENDIX 5.2. SHEET 2: RESPONDENTS INFORMATION

Hotel

Name

Contact

Name

Position Gender Age Original

From

Occupation Education

Level

Education

Majoring

Hotel

Experience

BH1 Xx Owner Female X North X X X No

BH2 Xx Owner Male X South X X X No

BH3 Xx Owner Male X North X X X No

Xx Manager Female X Central X X X Yes

212

APPENDIX 6: THE EXAMPLE OF TRANSCRIBED INTERVIEW

213

214

APPENDIX 7: THEMATIC ANALYSIS/ CODES (FINAL)

Theme Master Codes Sub Codes

Family Influences FI

Dominant of Family FI: DF

Financial Support FI: FS

Non-Financial Support FI: NFS

Friends’ Encouragement FE

Business Idea FE: BI

Hotel Operational Aids FE: HOA

Attraction of Destination AD

Living Conditions AD: LC

Destination Culture, People, and

Community

AD: DCPC

Views toward Destination AD: VD

Hotel and Destination AD: HD

Type of Business TB

Easy to Enter TB: EE

Respondents’ Confident TB: RC

Affordable Business TB: AB

Business Features TB: BF

Business Purpose TB: BP

Business Growth Strategies BGS

Growth of Room BGS: GR

Growth of Hotel BGS: BH

Growth of Others BGS: BO

Business Growth Plan BGP

Growth of Room, Facilities, and

Hotel

BGP: GRFH

Service Improvement BGP: SI

New Style of Hotel BGP: NSH

215

Reasons Behind Growth RBG

Profit Reasons RBG: PR

Respondents’ Interests RBG: RI

Hotel Context RBG: HC

Satisfy Family RBG: SF

Satisfy Guests RBG: SG

Features of Boutique Hotel FBH

Respondents’ Ideas FBH: RI

Family’s Ideas FBH: FI

Influence of Culture FBH: IC

Number of Rooms FBH: NBR

Boutique Hotel Atmosphere BHA

Homely Feeling BHA: HF

Character of Employees BHA: CE

Respondents and Employees BHA: RE

View of Boutique Hotel VBH

Boutique Hotel Definition VBH: BHD

Role of Conservation VBH: RC

216

APPENDIX 8: REARRANGING OF CODE AND CODED TEXT

Code Coded Text Translation MeaningFI: DF เจาของ/ มนถกจบโยนมา จรงๆ ตอนแรก

พทำากอสรางคะ ไปทำากอสรางมา แลว จรงๆ แลวอยางทพวา บคลากรในกงส

ของเราเองมนไมมใคร อม แลวก พกำาลง จะโตในสายกอสราง คะพทำาอาคาร

พาณชยขายอะไรอยางน แลวก พอมา ถงทนแลวงบประมาณในการ renovate

มนคอนขางสงถาเราจาง คลายๆวาเราจะ จาง GM มาคมเหรอ เราจะจางใครมาคม เนยะ เราคงจะตองโดนคาโสหยไมตำากวา

10 ลาน คะเพราะนนเรากเลยคดวา ทกคน กลงมตแลววา ใหพมาดเหอะ ใหพมาด

เหอะ แลวกตาย ใหพมาดกอสรางอยาง เดยวมนกจบ แตกลายเปนวามาดทก

เรองเลย แลวมนกเลย ตดคลกกนอย ตรงน โดยท ผลสดทายไป กเหมอนกบ

เรารกทนไปดวย เพราะวาเรา เราสรางมนมากบมออะนะคะ

I was told to do this. Actually I used to

be a contractor. As I said, we don’t have

anybody in our family to do this. I grew

up in construction field. I did

commercial building. For this hotel, the

renovating budget is quite high. If we

hire GM to do it, we might have to pay

more than 10 million. So everyone in

the family said I have to do it. If I did

only the renovation is ok, but actually I

did everything. I was stuck here. Finally

I felt in love with it because I build it

myself. (I22, 152-158)

She has to manage this

hotel because her family

told her to do it.

FI: DF สายนท/ แลวก เออ จะถามวา แลวคณจบ

มาแลวกมาทำาโรงแรมนเลยรเปลาคะ หรอ

วาทำาทอนมากอน

เจาของ/ อา ยง ยงคะ คอ จบ จบ ป.ตร

ปบ ท xx แลวก ไปทำางานท คอจบ สาขาท

ไมใชโรงแรมมาคะ ซงแบบวากอยากทำาท

เราทำากอน เรมจากทำาท อา xxx คะ เปนอา

ฝาย xxx กอน ปหนง แลวก คณพอเขาก

แบบวา เฮยแบบ ไมอยากใหทำาละ แบบคอ

ยงไงกรอยแลววา เราจะตองมาทำาธรกจ

ของตวเองเงยะคะ กเลยไปเรยน ไปเรยน

MBA ทอเมรกา แลวกกลบมาทำาทน

… ของดฉนมนแรงจงใจมนมาจาก พน ฐานครอบครวดวยอะ เอาจรงๆ แลว

ดฉนวา ถาถามจรงๆ อยากทำาไหม( “ ” กระซบวา ไมอยากทำา พอดคณพอยนอยตรงนน) คอเรยน xxx มากอยาก

No (I did not start a hotel right away).

After I graduated, I worked in that

company. I graduated majoring in

television. I wanted to do what I had

studied. I worked at this company,

animation department for a year. Then

my father did not want me to do it

anymore. He said I had to run my own

business. So I did an MBA in the USA

and came back here. My motivation is

from family. I actually don’t want to do

this. (Whispering as her father stand

there). I want to work in television.

(I28, 88-106, 160-162)

The owner’s father wants

the owner to run her own

business. Though she does

not want to do it, her father

told her to quit her job.

217

ทำา xxx อะไรอยางเนยะ

FI: DF สายนท/ แลวตอนเปดนคณมาดตงแตเรมตนรเปลาคะ

เจาของ/เออ ไมใช ไมใช ไมใช พอดตอน

เปดนน ผมยงเรยนอย ก กมทก

ครอบครวมาด คอหลายคนมาด คอพชาย

มา จะเปน เปนเหมอนกบ เหมอนกบธรกจ

นเวยนๆกนมาดอะ เพราะมนเปน คนอน

เขากมงานประจำากนอยหมด ทกคน

สายนท/ แลวทำาไมคณตดสนใจมาดโรงแรมนละคะ

เจาของ/ ก มนไม คอ เปนของครอบครว

แลวก พชายเขาก ไปดโรงงาน ผมกเลย

ตองมาดโรงแรม (หวเราะ)

No, no, no (I did not do it from the

start). When this hotel opened, I was

still studying. Many of my family

members took care of it, such as my

brother. They rotated in operating this

hotel. Everyone has their own job.

(The reason I run this hotel) because it

belongs to my family. My brother takes

care of a factory. So I have to take care

of this. (I26, 15-22)

It is a family business. The

owner has to take care of it

because he is a member of

the family.

FI: DF ผมกยงทำางานอยทกรงเทพฯ แลวคณแม

กไมสบาย พยายามจะหาโอกาส กลบมา

อยเชยงใหม แตกอนบานหลงน บรเวณ

รอบๆ เนยะ เราจะมบานหลงเลกๆ แบงให

เชา นะฮะ เพราะพนทตรงนมนกเกอบ สาม

ไร เรากจะมแบงใหเชาเปนเลกๆ อา กจะม

ฝรงมาขอเชาอยเรอยๆ เขากชอบ

บรรยากาศนะฮะ อาพอ พอถงเวลาทเรา

ยายกลบมา เรากเลยเรม เรมจาก ลอง

สรางด หาหองทดานหนานะฮะฮะ กด

วาการปรบปรงการตอบรบจะเปนยงไง

สายนท/แสดงวาตอนทเรมทำาเนยะ คณ

ยงอยกรงเทพฯอย แลวไมไดเปนคนมา

ดแลเองใชมยคะ

เจาของ/อาใชครบ ภรรยาจะเปนคนดแล

เบองตน ผมกจะดแลทางดานกอสราง

เพราะเราจบทางดานนมา

สายนท/ แลวภรรยากคอยายมาอยท

เชยงใหมเลย

เจาของ/ ครบ กครอบครวกยายมาอย

เพอทจะมาอยกนตรงน

I still worked in Bangkok when my

Mom got sick. I try to find a way to live

in Chiang Mai. Before, this house and

the surroundings, we have small houses.

They are rented by foreigners. They like

the atmosphere. When we have to move

back, we started from 5 rooms. I

consider the renovation process and at

the same time consider the response

from the customers.

Yes (I still in Bangkok at that time). My

wife took care of this accommodation. I

was in charge of the constriction. I

graduated in this field.

My family moved to Chiang Mai. So we

can live here together. (I30, 9-13)

This is about family. He

wants to move, so he can

live close to his mother. At

that time, his mother was

sick. In order to do this he

has to find ways to earn an

income. So he creates a

hotel. First, his wife moves

so she can take care of his

hotel. Then when the hotel

is going very well, he

decides to quit his job and

moves. So he can be close

to his family and his

mother. The hotel is a

business that he can run

and, at the same time, lives

with his family.

218

219