Impact of industry forces on resource competitive strategies and hotel performance

Abstract

Scope and Method of Study: the purposes of this study were to: (1) assess the impact of industry forces on resource competitive strategies; (2) investigate the impact of resource competitive strategies on hotel performance; and (3) assess the moderating effect of hotel affiliation and organization structure on the relationship between industry forces and resource competitive strategies and hotel performance. Respondents were hoteliers at hotels in the U.S. 317 participated this survey. ANOVA and independent sample T-Test was applied for the significant difference between hotel size and affiliation with eight constructs. Structural equation modeling by LISREL 8.52 and hierarchical multiple regression was used to examine the causal links among constructs.

Findings and Conclusions: Results indicated that there were some significant differences between hotel size and affiliation on industry forces, resource competitive strategies, organization structure, and hotel performance. The industry forces in terms of bargaining power of customers and new hotel entrants had a positive impact on implementing competitive human resource and information technology strategies. Furthermore, competitive human resource and information technology strategies had an impact on hotel superior performance. This study further found the moderating effect of hotel affiliation on the relationship between industry forces, resource competitive strategies, and performance. Moreover, there was the moderating effect of organization structure on the relationship between industry forces, resource competitive strategies, and performance. This study suggested that in order to be successful in the hotel business, hoteliers should consider all external (industry forces) and internal factors (e.g. hotel affiliation, competitive resources, and organization structure) for competitive strategy implementation. Hoteliers should be able to adapt all possible changes and be innovative in the business in order to achieve the high profitability and growth.