Responding to organizational identity change: ethnographic insights from multinational hotel subsidiaries

Abstract

Purpose This paper aims to use an organizational ethnography perspective to explore how subsidiary hotel properties of a multinational hotel corporation experience planned organizational identity (OI) change instituted by headquarters. Design/methodology/approach This study uses a multi-site approach to collect ethnographic data on organizational change from six hotel subsidiaries in California, USA. Over three years, multiple sources of data were collected including: 31 interviews with hotel subsidiary leaders; more than 100 participant observation hours including job shadows, conferences and meetings; and photographs and internal communication materials. Findings Multinational hospitality companies face struggles between corporate standardization and subsidiary localization. This paper reveals that when headquarters plan changes focused on employees at their subsidiaries, the ways the latter initially accept and resist change are significantly impacted by the organizational memory and history of subsidiary leaders. However, as time progressed, properties with strong financial performance continued to operationalize new identity initiatives while properties with poorer profit margins played a balancing act between headquarters’ visionary identity and subsidiary ownership’s revenue expectations. Additionally, the situational realities caused by the COVID-19 pandemic put a halt to all properties which amplified practical and emotional challenges of organizational ethnography in hospitality research. Originality/value This paper contributes to hospitality literature by introducing an under-researched concept, OI change and advances understanding of the struggles in managing multinational company change. More importantly, this paper is a stepping stone for future hospitality management to embark on organizational ethnography.