IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i7p4066-d530936.html
   My bibliography  Save this article

The Effects of External and Internal Factors on Competitive Advantage—Moderation of Market Dynamism and Mediation of Customer Relationship Building

Author

Listed:
  • Romina Cheraghalizadeh

    (Department of Business Administration, Eastern Mediterranean University, Famagusta 99628, North Cyprus, Turkey)

  • Hossein Olya

    (Research Development for Marketing & CCI, Sheffield University Management School, Sheffield S10 1FL, UK)

  • Mustafa Tumer

    (Department of Business Administration, Eastern Mediterranean University, Famagusta 99628, North Cyprus, Turkey)

Abstract

Using a resource-based view and dynamic capabilities approach, this study investigates both the internal and external factors influencing competitive advantage in the hotel industry. For this purpose, we examine how organizational capabilities may lead to customer relationship building and in turn to competitive advantage. We further test the moderation role of market dynamism on the relationship between organizational capabilities and customer relationship building, and also investigate the mediation effect of customer relationship building on the association between organizational capabilities and competitive advantage. A questionnaire-based study was conducted among hotel employees in Northern Cyprus to test the conceptual model. A set of approaches was applied to detect common method bias and test the validity and reliability of the questionnaire. Correlation and regression analyses were conducted to evaluate the relationships between the variables, and bootstrapping analysis was applied to assess the mediation and moderation effects. The results revealed that organizational capabilities enhance customer relationship building and competitive advantage. Market dynamism as an external factor moderates the relationship between organizational capabilities and customer relationship building. There is also an indirect association between organizational capabilities and competitive advantage through the mediation of customer relationship building. The theoretical and practical implications of the findings are discussed.

Suggested Citation

  • Romina Cheraghalizadeh & Hossein Olya & Mustafa Tumer, 2021. "The Effects of External and Internal Factors on Competitive Advantage—Moderation of Market Dynamism and Mediation of Customer Relationship Building," Sustainability, MDPI, vol. 13(7), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:4066-:d:530936
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/7/4066/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/7/4066/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Juan Manuel Ramon-Jeronimo & Raquel Florez-Lopez & Pedro Araujo-Pinzon, 2019. "Resource-Based View and SMEs Performance Exporting through Foreign Intermediaries: The Mediating Effect of Management Controls," Sustainability, MDPI, vol. 11(12), pages 1-26, June.
    2. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    3. Orfila-Sintes, Francina & Mattsson, Jan, 2009. "Innovation behavior in the hotel industry," Omega, Elsevier, vol. 37(2), pages 380-394, April.
    4. Yong Su & Jacob Cherian & Muhammad Safdar Sial & Alina Badulescu & Phung Anh Thu & Daniel Badulescu & Sarminah Samad, 2021. "Does Tourism Affect Economic Growth of China? A Panel Granger Causality Approach," Sustainability, MDPI, vol. 13(3), pages 1-12, January.
    5. Trainor, Kevin J. & Andzulis, James (Mick) & Rapp, Adam & Agnihotri, Raj, 2014. "Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM," Journal of Business Research, Elsevier, vol. 67(6), pages 1201-1208.
    6. Joon-ho Kim & Bong-ihn Seok & Hyun-ju Choi & Seung-hye Jung & Jong-pil Yu, 2020. "Sustainable Management Activities: A Study on the Relations between Technology Commercialization Capabilities, Sustainable Competitive Advantage, and Business Performance," Sustainability, MDPI, vol. 12(19), pages 1-31, September.
    7. Walsh, Gianfranco & Hennig-Thurau, Thorsten & Sassenberg, Kai & Bornemann, Daniel, 2010. "Does relationship quality matter in e-services? A comparison of online and offline retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 17(2), pages 130-142.
    8. Cruz-Ros, Sonia & Gonzalez-Cruz, Tomas F., 2015. "Service firm capabilities and performance: Contingent analysis of customer contact," Journal of Business Research, Elsevier, vol. 68(7), pages 1612-1621.
    9. Hoon-Ku Sul & Xiaoting Chi & Heesup Han, 2020. "Measurement Development for Tourism Destination Business Environment and Competitive Advantages," Sustainability, MDPI, vol. 12(20), pages 1-20, October.
    10. Kuo, Szu-Yu & Lin, Pei-Chun & Lu, Chin-Shan, 2017. "The effects of dynamic capabilities, service capabilities, competitive advantage, and organizational performance in container shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 356-371.
    11. Leonidou, Leonidas C. & Leonidou, Constantinos N. & Fotiadis, Thomas A. & Zeriti, Athina, 2013. "Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance," Tourism Management, Elsevier, vol. 35(C), pages 94-110.
    12. Nazanin Naderiadib Alpler & Huseyin Arasli, 2020. "Can Hindrance Stressors Change the Nature of Perceived Employability? An Empirical Study in the Hotel Industry," Sustainability, MDPI, vol. 12(24), pages 1-13, December.
    13. Wang, Zhan & Kim, Hyun Gon, 2017. "Can Social Media Marketing Improve Customer Relationship Capabilities and Firm Performance? Dynamic Capability Perspective," Journal of Interactive Marketing, Elsevier, vol. 39(C), pages 15-26.
    14. Servet Nasifoglu Elidemir & Ali Ozturen & Steven W. Bayighomog, 2020. "Innovative Behaviors, Employee Creativity, and Sustainable Competitive Advantage: A Moderated Mediation," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    15. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    16. Li, Shenxue & Easterby-Smith, Mark & Hong, Jacky F.L., 2019. "Towards an understanding of the nature of dynamic capabilities in high-velocity markets of China," Journal of Business Research, Elsevier, vol. 97(C), pages 212-226.
    17. Jantunen, Ari & Tarkiainen, Anssi & Chari, Simos & Oghazi, Pejvak, 2018. "Dynamic capabilities, operational changes, and performance outcomes in the media industry," Journal of Business Research, Elsevier, vol. 89(C), pages 251-257.
    18. Baumann, Chris & Hoadley, Susan & Hamin, Hamin & Nugraha, Albert, 2017. "Competitiveness vis-Ã -vis service quality as drivers of customer loyalty mediated by perceptions of regulation and stability in steady and volatile markets," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 62-74.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Romina Gómez-Prado & Aldo Alvarez-Risco & Berdy Briggitte Cuya-Velásquez & Marián Arias-Meza & Nilda Campos-Dávalos & Luis Juarez-Rojas & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Ar, 2022. "Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru," Sustainability, MDPI, vol. 14(17), pages 1-21, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    2. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    3. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    4. Brewis, Claire & Dibb, Sally & Meadows, Maureen, 2023. "Leveraging big data for strategic marketing: A dynamic capabilities model for incumbent firms," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    5. Marjeta Marolt & Hans-Dieter Zimmermann & Andreja Pucihar, 2022. "Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    6. Xuan Hung Nguyen & Khanh Linh Nguyen & Thi Van Ha Nguyen & Thi Thanh Huyen Nguyen & Van Loi Ta, 2023. "The Impact of Green Organizational Capabilities on Competitive Advantage of Construction Enterprises in Vietnam: The Mediating Role of Green Innovation," Sustainability, MDPI, vol. 15(16), pages 1-16, August.
    7. Marchand, André & Hennig-Thurau, Thorsten & Flemming, Jan, 2021. "Social media resources and capabilities as strategic determinants of social media performance," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 549-571.
    8. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    9. Ta-Wei Tang & Michael Wang & Ya-Yun Tang, 2015. "Developing service innovation capability in the hotel industry," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 97-113, March.
    10. Elia, Stefano & Giuffrida, Maria & Mariani, Marcello M. & Bresciani, Stefano, 2021. "Resources and digital export: An RBV perspective on the role of digital technologies and capabilities in cross-border e-commerce," Journal of Business Research, Elsevier, vol. 132(C), pages 158-169.
    11. Hang T. T. Nguyen & Hanh Song Thi Pham & Susan Freeman, 2023. "Dynamic capabilities in tourism businesses: antecedents and outcomes," Review of Managerial Science, Springer, vol. 17(5), pages 1645-1680, July.
    12. Ye, Yu & Yu, Qionglei & Zheng, Yongjun & Zheng, Yi, 2022. "Investigating the effect of social media application on firm capabilities and performance: The perspective of dynamic capability view," Journal of Business Research, Elsevier, vol. 139(C), pages 510-519.
    13. Glyptis, Loukas & Hadjielias, Elias & Christofi, Michael & Kvasova, Olga & Vrontis, Demetris, 2021. "Dynamic familiness capabilities and family business growth: A longitudinal perspective framed within management accounting," Journal of Business Research, Elsevier, vol. 127(C), pages 346-363.
    14. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    15. Sikandar Ali Qalati & Dragana Ostic & Gu Shuibin & Fan Mingyue, 2022. "A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 846-861, April.
    16. Matsuno, Ken & Kohlbacher, Florian, 2020. "Proactive marketing response to population aging: The roles of capabilities and commitment of firms," Journal of Business Research, Elsevier, vol. 113(C), pages 93-104.
    17. Avimanyu Datta, 2011. "Review and Extension on Ambidexterity: A Theoretical Model Integrating Networks and Absorptive Capacity," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(1), pages 2-22, March.
    18. Witek-Hajduk Marzanna K. & Zaborek Piotr, 2022. "Social media use in international marketing: Impact on brand and firm performance," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(2), pages 121-142, June.
    19. Perez-Vega, Rodrigo & Hopkinson, Paul & Singhal, Aishwarya & Mariani, Marcello M., 2022. "From CRM to social CRM: A bibliometric review and research agenda for consumer research," Journal of Business Research, Elsevier, vol. 151(C), pages 1-16.
    20. Jean, Ruey Jer “Bryan” & Kim, Daekwan & Bello, Daniel C., 2017. "Relationship-based product innovations: Evidence from the global supply chain," Journal of Business Research, Elsevier, vol. 80(C), pages 127-140.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:4066-:d:530936. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.