Trust in Governance System (TGS) in the Hotel Context: Scale Development and Validation
Abstract
The purpose of this study was to conceptualize trust in governance systems (TGS) within the hotel context, develop a scale to measure it, and validate its effects on hotel investment decisions. The study focused on the perspectives of hotel leadership which includes the owners, operators, and investors in the United States. The study employed a mixed-methods approach, exploratory sequential research design. Initially, the governance system within the hotel industry was conceptualized, and trust in governance was defined. The scale development phase involved generating items and dimensions through literature review, expert review, and pilot testing. The final scale included multiple dimensions of trust, reflecting the complexity of trust relationships in the hotel industry. To further validate the measurement and test its effects on hotel investment decisions, a nomological model was proposed. The model was based on systems theory and the theory of bounded rationality, exploring the impact of trust on regulatory, economic, and performance systems within a destination. The results demonstrated that trust in governance systems positively influenced hotel investment decisions by affecting these government systems. This study made significant theoretical and practical contributions. It was the first attempt to develop a comprehensive scale to measure trust in governance systems specifically for the hotel industry. The study confirmed the multidimensional nature of trust in governance and provided a detailed understanding of its components. By adopting a relational approach, the study emphasized the importance of trustworthiness, performance, and interpersonal relationships in shaping trust. The study also provided practical insights for hotel industry stakeholders. The results highlighted the critical role of trust in governance in influencing investment decisions, emphasizing the need for effective governance practices. The developed scale offers a valuable tool for assessing and improving trust in governance, facilitating better decision-making and fostering stronger relationships among hotel leadership and government entities.