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Effect of sustainable competitive advantage on business excellence in the hotel industry

Author

Listed:
  • Deepali Anand
  • Alka Munjal

Abstract

The purpose of this paper is to establish and study the impact of sustainable competitive advantage (cost leadership and differentiation) on business excellence in star-rated hotels. This will further help the top management define internal strategies that drive the organisation according to the adopted competitive strategy. Under descriptive research through survey method, a sample of 220 executives (top and middle management) from different star-rated hotels in NCR was taken. Structural equation modelling as a technique was adopted to conduct the analysis of the data obtained through the survey. Among the research results, it is worth focusing on the scale validation and testing of hypothesis that accentuated that competitive advantage (cost leadership and differentiation) has a significant impact on the formulation of business excellence strategies. Economies of scale, technology, partnership in the supply chain are important predictors of cost leadership; relation-building, service innovation and quality, brand image are predictors of differentiation. A clear understanding of the hotels on competitive strategies to be followed helps formulate internal business excellence strategies for success and higher profitability.

Suggested Citation

  • Deepali Anand & Alka Munjal, 2024. "Effect of sustainable competitive advantage on business excellence in the hotel industry," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 32(4), pages 545-560.
    • Handle: RePEc:ids:ijbexc:v:32:y:2024:i:4:p:545-560
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