TY - JOUR
T1 - Competitive actions and firm performance of hotels in Hong Kong
AU - Yeung, Ping Kwong
AU - Lau, Chung Ming
N1 - Funding Information:
The first hypothesis posited that the more diverse is a hotel's own portfolio of competitive actions, the better its growth in performance level will be. This was supported by this sample of hotels. The results indicated that hotels could increase their financial performance by diversifying their action portfolio. The second hypothesis posited that the more the hotel conforms to the portfolio of competitive actions of its competitors, the better its growth in performance level will be. The study confirmed that nonconformity in competitive actions is negatively related to both performance indicators. Thus, as hotels differentiate too far from the dominant action profile of their competitors, their profitability potential decreases rather than increases.
PY - 2005/12
Y1 - 2005/12
N2 - Drawn on the recent action-reaction perspective in competitive dynamics studies, this paper suggests that not only the number of competitive actions, but also the extent of differences of action portfolios within and between firms are relevant in determining a firm's performance. A distinction of these differences of competitive action portfolios among firms and the corresponding measures to capture these effects are proposed. This study of Hong Kong high tariff hotels confirmed that diversifying a hotel's portfolio of actions, but not too much different from the competitors, would help hotels to achieve higher financial performance in a competitive market.
AB - Drawn on the recent action-reaction perspective in competitive dynamics studies, this paper suggests that not only the number of competitive actions, but also the extent of differences of action portfolios within and between firms are relevant in determining a firm's performance. A distinction of these differences of competitive action portfolios among firms and the corresponding measures to capture these effects are proposed. This study of Hong Kong high tariff hotels confirmed that diversifying a hotel's portfolio of actions, but not too much different from the competitors, would help hotels to achieve higher financial performance in a competitive market.
KW - Action diversity and nonconformity
KW - Competitive action
KW - Strategic performance
UR - http://www.scopus.com/inward/record.url?scp=27744551747&partnerID=8YFLogxK
U2 - 10.1016/j.ijhm.2005.06.005
DO - 10.1016/j.ijhm.2005.06.005
M3 - Article
AN - SCOPUS:27744551747
SN - 0278-4319
VL - 24
SP - 611
EP - 633
JO - International Journal of Hospitality Management
JF - International Journal of Hospitality Management
IS - 4
ER -