Hybrid strategy and hotel performance: The mediating effect of strategic flexibility

Purpose - This paper examines the strategic flexibility as a mediator on the relationship between hybrid strategy and performance of Malaysian hotels. Porter (1980, 1985) explained that competitive strategy paradigm was based on firms’ competitive advantage within an industry, which can be achieved...

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Main Author: Kaliappen, Narentheren
Format: Conference or Workshop Item
Language:English
Published: 2017
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Online Access:http://repo.uum.edu.my/24623/1/SICONSEM%202017%20223%20224.pdf
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spelling my.uum.repo.246232018-08-13T00:59:54Z http://repo.uum.edu.my/24623/ Hybrid strategy and hotel performance: The mediating effect of strategic flexibility Kaliappen, Narentheren HD28 Management. Industrial Management Purpose - This paper examines the strategic flexibility as a mediator on the relationship between hybrid strategy and performance of Malaysian hotels. Porter (1980, 1985) explained that competitive strategy paradigm was based on firms’ competitive advantage within an industry, which can be achieved by pursuing either low cost or differentiation.But in contrast to Porter’s viewpoint, the researcher used cost leadership and differentiation strategies, because they are commonly used strategic dimensions in the literature which called hybrid strategy (Baroto and Abdullah, 2011).This hybrid strategy is the one which combine low cost and differentiation elements.This new hybrid strategy becomes more important where firms can position themselves to improve their ability to adapt quickly to environmental changes and learn new skills and technologies, leverage core competencies across business units and produce products or services with differentiated features at low cost (Kim, Nam & Stimpert, 2004; Acquaah and Yasai-Ardekani, 2006; Salavou, 2013; Thomas, 2015; Jamil and Hasnu, 2017).However, hotels in the hunt for developing their performance cannot solely depend on the hybrid strategy, but need to create strategic flexibility that could propel for better performance attainment.Strategic flexibility is considered as the important source of competitive advantage in an uncertain and rapidly changing environment (Hitt, Ireland & Hoskisson, 2009). Along with the globalization and the revolution of technologies, corporations are facing greater environmental uncertainty and so more attention should be paid to strategic flexibility. Nonetheless, empirical studies that emphasize on the influence of hybrid strategy and strategic flexibility are still fewer within the context of Malaysian hotel industry, which provides an immense potential for future research. To enrich the existing literatures of hybrid strategy and strategic flexibility use in the Malaysianhotel industry, this study makes an attempt to achieve the following objectives; (1) to examine the relationship of hybrid strategy and hotel performance; and (2) to examine the effect of strategic flexibility in mediating the association between hybrid strategy and hotel performance.Methodology - A total of 475 sets of questionnaires administrated through mail to all three star and above rating hotel managers in Malaysia, and only 24 percent of it, which is 114 were usable.Multiple regressions were used to analyse the relationship of hybrid strategy, strategic flexibility and performance.This cross-sectional study tested all hypotheses that are related to the research questions and used statistical software SPSS 21 to analyze data.Findings - The outcomes indicate that hybrid strategy has a significant impact on performance and strategic flexibility. Similarly, strategic flexibility has a significant impact on performance. Specifically, it establishes that strategic flexibility partly mediate the association of hybrid strategy and performance. 2017-12-04 Conference or Workshop Item PeerReviewed application/pdf en http://repo.uum.edu.my/24623/1/SICONSEM%202017%20223%20224.pdf Kaliappen, Narentheren (2017) Hybrid strategy and hotel performance: The mediating effect of strategic flexibility. In: Sintok International Conference on Social Science and Management (SICONSEM 2017), 4-5 December 2017, Adya Hotel, Langkawi Island, Kedah, Malaysia..
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Kaliappen, Narentheren
Hybrid strategy and hotel performance: The mediating effect of strategic flexibility
description Purpose - This paper examines the strategic flexibility as a mediator on the relationship between hybrid strategy and performance of Malaysian hotels. Porter (1980, 1985) explained that competitive strategy paradigm was based on firms’ competitive advantage within an industry, which can be achieved by pursuing either low cost or differentiation.But in contrast to Porter’s viewpoint, the researcher used cost leadership and differentiation strategies, because they are commonly used strategic dimensions in the literature which called hybrid strategy (Baroto and Abdullah, 2011).This hybrid strategy is the one which combine low cost and differentiation elements.This new hybrid strategy becomes more important where firms can position themselves to improve their ability to adapt quickly to environmental changes and learn new skills and technologies, leverage core competencies across business units and produce products or services with differentiated features at low cost (Kim, Nam & Stimpert, 2004; Acquaah and Yasai-Ardekani, 2006; Salavou, 2013; Thomas, 2015; Jamil and Hasnu, 2017).However, hotels in the hunt for developing their performance cannot solely depend on the hybrid strategy, but need to create strategic flexibility that could propel for better performance attainment.Strategic flexibility is considered as the important source of competitive advantage in an uncertain and rapidly changing environment (Hitt, Ireland & Hoskisson, 2009). Along with the globalization and the revolution of technologies, corporations are facing greater environmental uncertainty and so more attention should be paid to strategic flexibility. Nonetheless, empirical studies that emphasize on the influence of hybrid strategy and strategic flexibility are still fewer within the context of Malaysian hotel industry, which provides an immense potential for future research. To enrich the existing literatures of hybrid strategy and strategic flexibility use in the Malaysianhotel industry, this study makes an attempt to achieve the following objectives; (1) to examine the relationship of hybrid strategy and hotel performance; and (2) to examine the effect of strategic flexibility in mediating the association between hybrid strategy and hotel performance.Methodology - A total of 475 sets of questionnaires administrated through mail to all three star and above rating hotel managers in Malaysia, and only 24 percent of it, which is 114 were usable.Multiple regressions were used to analyse the relationship of hybrid strategy, strategic flexibility and performance.This cross-sectional study tested all hypotheses that are related to the research questions and used statistical software SPSS 21 to analyze data.Findings - The outcomes indicate that hybrid strategy has a significant impact on performance and strategic flexibility. Similarly, strategic flexibility has a significant impact on performance. Specifically, it establishes that strategic flexibility partly mediate the association of hybrid strategy and performance.
format Conference or Workshop Item
author Kaliappen, Narentheren
author_facet Kaliappen, Narentheren
author_sort Kaliappen, Narentheren
title Hybrid strategy and hotel performance: The mediating effect of strategic flexibility
title_short Hybrid strategy and hotel performance: The mediating effect of strategic flexibility
title_full Hybrid strategy and hotel performance: The mediating effect of strategic flexibility
title_fullStr Hybrid strategy and hotel performance: The mediating effect of strategic flexibility
title_full_unstemmed Hybrid strategy and hotel performance: The mediating effect of strategic flexibility
title_sort hybrid strategy and hotel performance: the mediating effect of strategic flexibility
publishDate 2017
url http://repo.uum.edu.my/24623/1/SICONSEM%202017%20223%20224.pdf
http://repo.uum.edu.my/24623/
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