Journal of Business & Tourism

Macroeconomic Prudence and Multinationals Investment in Latin America and Caribbean

Mumtaz Hussain Shah — 2025-07-24

Foreign direct investment is considered indispensible by developing nations to aid in their economic development expecting that it will ensue technology and efficiency spill overs. This research paper aims at finding the impact of macroeconomic prudence on inward FDI in Latin American and Caribbean (LAC) developing economies. Using a panel of 16 LAC states from 1990 to 2023, the results by using fixed effect estimation model proves that market size, development level and openness play a significant role in attracting multinational investment. However, human capital is found to be empirically insignificant for drawing in FDI. The key macroeconomic variables under study are also significant except interest rates. It can be concluded that inflation being a signal of macro-economic instability impedes the investment decisions of foreign multinationals; secondly stable exchange rates play a substantial role in drawing FDI and lastly higher unemployment signals weak macro-economic conditions and negatively influence MNCs.

Export Processing Zones and their Constituent Firms: Over Four Decades of Research in Review

Shahzad Khurram — 2025-07-24

Free zones are specialized in manufacturing for exports that offer firms’ free trade conditions and a liberal regulatory environment. Despite the mounting interest of scholars and practitioners, no effort till date has been made to take stock of a large amount of literature on free zones. To fill this gap, we systematically reviewed the extant literature on free zones, following a structured approach. We reviewed 188 articles (listed in JCR) belonging to 153 different journals over a span of 46 years (1974-2023). This detailed review indicated that free zones have generally been viewed and highlighted as a policy instrument that aims to achieve socio-economic objectives. However, realizing the interest of the management scholars, this review structures the extant literature to promote scholarly dialogue on management practices and environmental implications of this revelatory industrial research site, by mapping the literature into themes, summarizing trends and identifying gaps in extant literature.

Finding the Silver Lining: Mediating Role of Optimism between Psychological Empowerment and Employee Creative Performance in Hospitality Sector of Pakistan

Madiha Akhlaq — 2025-11-23

This study investigates the effect of psychological empowerment on employee creative performance in the hospitality industry of Pakistan, with optimism examined as a mediating variable. Data were obtained from 350 employees working in hotels and restaurants in Twin cities of Rawalpindi and Islamabad using structured questionnaires. A cross-sectional, correlational design was applied, and the data were analyzed using SPSS. The results reveal that psychological empowerment has a significant positive effect on employee creative performance. Moreover, optimism significantly mediates the relationship between psychological empowerment and creative performance, which highlights its role as a psychological resource that translates empowerment into creativity. From a managerial perspective, the findings suggest that empowerment-oriented HR practices and training programs that foster optimism can effectively enhance the creativity of employee in the hospitality sector.

Investigating the Influence of Ease of Doing Business over Foreign Direct Investment Inflows Mediated By Firm Creation and Moderated By Financial Sector Development

Sadia Altaf — 2025-11-30

A decent level of foreign direct investment (FDI) is something every country would certainly endeavour to receive. However, it has been historically observed that some countries receive much more FDI than others. One reason for this could be the ease with which a foreign company can start or operate its business in a host economy. The current study investigates the impact of ease of doing business on FDI in Pakistan with the mediating role of firm creation and the moderating effect of financial sector development. The population of this study included people who were practically engaged in the decision-making process in businesses in Pakistan. They are Entrepreneurs, Business Owners, Managers and Financial Officers. A sample of 373 respondents was analysed using Structural Equation Modelling (SEM) through SmartPLS-4 statistical package. It’s found that ease of doing business has a significant and positive direct and indirect impact on inward FDI through firm creation and a negative moderating effect through financial sector development. These findings strongly support the hypothesis that an attractive business climate, which is determined by streamlined laws, clear-cut procedures, and effective institutional structures, favours the capacity of a nation to attract more foreign investors. To the policymakers, these findings highlight the need to improve the regulatory environment and financial infrastructure, so that enhanced FDI inflows may be utilised to promote long-term economic growth and economic development of the country.

The Robotics and the Future of Tourism and Hospitality: Attitudes and Perspectives of Future Employees

Shuhabuddin Abro — 2025-12-03

This qualitative study explores tourism and hospitality students’ attitudes and perceptions toward the adoption of robotics and artificial intelligence (AI) in the sector. Semi-structured interviews were conducted with 20 third- and fourth-year students from Faculty of Tourism at Eastern Mediterranean University in Northern Cyprus to elicit views about benefits, challenges, and likely impacts on future careers. Thematic analysis identified six core themes: efficiency, service improvement, unemployment concerns, cost-saving considerations, the importance of human skills, and education/upskilling costs. Participants perceived robots as a means to improve operational efficiency and service consistency while expressing significant anxiety about job displacement, privacy, and the erosion of interpersonal service quality. Findings suggest students favor a balanced approach in which routine tasks are automated but human staff remain responsible for emotionally demanding and complex interactions. The paper contributes empirical evidence on the next generation’s perceptions of service robotization and discusses implications for curriculum design, workforce upskilling, and managerial integration strategies. Limitations include a small purposive sample and single-method design; recommendations are offered for mixed-methods, longitudinal research, and policy measures to support workforce transition.