Competitive Strategy and Sustainable Performance: The Application of Sustainable Balanced Scorecard

Abstract

To survive in such a highly competitive market, hotels have to sustain better-than-average performance over time. However, the empirical research on the ways and means of improving sustainable hotel performance, specifically in developing countries like Indonesia, is scant.
This study aims to help fill the knowledge gap of Indonesian hotel managers by providing empirical evidence on how competitive strategy could play a role in improving hotel sustainable performance (HSP). The Sustainable Balanced Scorecard (SBSC) approach was used to measure HSP based on financial, customer, internal business process, learning and growth, and social and environmental perspectives. A mixed methods research approach was used to test the relationships among the above mentioned variables. Online survey and in-depth interviews were used to collect data. The quantitative data were analysed using Partial Least Square (PLS). The results revealed that competitive strategy, particularly in the form of differentiation, had a significant influence on HSP.