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The aim of this article is to identify company characteristics which are linked to improved performance in hospitality firms. It compares the levels of market orientation and other company characteristics, including corporate culture, innovation procedures, use of information technology and ethical policies of hospitality firms with the most highly market‐oriented service firms from other sectors which took part in a large multi‐industry study in New Zealand. Suggests that hospitality managers should encourage their organisations to become more customer‐focused, to develop a corporate culture which encourages innovation, and to make greater use of Web‐based marketing to improve company performance.

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