Mitigating resource dependence on internet visibility providers: Exploring complementarity effects in the positioning of small hotels on online intermediaries

By integrating a resource dependence perspective with a complementarity view, this article investigates how online visibility affects the performance of hotels, through user-generated reviews and their presence on Internet portals. Our core argument is that when firms have gained a positive reputation from user-generated reviews, they should reduce their asymmetric dependence on Internet portals. Using a unique panel dataset of 276 small and medium-sized hotels from 2012 to 2014, we have found that good online visibility and the presence on multiple Internet portals are complementary conditions for the profitability of a hotel, and that the impact on profitability, due to the number of Internet portals on which firms are visible, is negative in the case of a poor reputation and leads to diminishing marginal returns in the case of a positive reputation.