Predicting Performance Through Business Strategy: The Mediating Role of Innovation’s type in Small Hotel

Sedyowidodo, Urip and Basbeth, Firdaus (2020) Predicting Performance Through Business Strategy: The Mediating Role of Innovation’s type in Small Hotel. Universitas Bakrie. (Unpublished)

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Despite having a great advantage of potential natural resources and cultural resource, Kelantan tourism industry is still behind other states in Malaysia in terms of number of tourists visited and spend time in hotel, particularly in small’s hotel. Previous literature shows that performance of the firms is related to the selection of strategy and innovation type. However, very little study has been done to determine the best combination of competitive strategy and type of innovation. Therefore, this study aims to explore the best match of strategy and type of innovation among small hotels in Kota Bharu. The data was collected through questionnaires, and employed SmartPLS3 for data analysis. Findings of this study noted that firstly cost leadership and differentiation are significantly related to incremental type of innovation and the activeness of innovation. Secondly, blue ocean strategy is not significantly related to any type of innovation and does not performance. The contributing factor to this is the readiness to implement value innovation which is the heart of the blue ocean strategy. These findings add to tourism and hospitality literature by quantitatively uncovering the match of competitive strategy to type of innovation and firm performance. Third finding is incremental innovation mediate the relationship between cost leadership strategy and performance as well as differentiation to performance, therefore this suggest that firms will achieve better productivity by focusing on incremental innovation. In contrast radical innovation is not mediates the relationship between blue ocean strategy and firm performance. The study contributes to the present pool of knowledge about the fitness of firm strategy and particular type of innovation to the performance of small’s hotel business.

Item Type: Other
Uncontrolled Keywords: Cost Leadership, Differentiation; Blue Ocean; Radical innovation; incremental innovation; Small Hotel strategy.
Subjects: Business
Management > Business Plan > Business
Management > Personnel Management
Science Paper > Research Report
Divisions: Lembaga Penelitian dan Pengembangan
Depositing User: Users 2 not found.
Date Deposited: 27 Aug 2020 09:53
Last Modified: 27 Aug 2020 09:53

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