The role of competitive strategy, strategic alliance, and managerial use of mas information in hotel sustainable performance : evidence from Indonesia

Abstract

Competition in the tourism industry, particularly in the hotel industry, is becoming increasingly intense. To survive in such a highly competitive market, hotels have to sustain better-than-average performance over time. Consequently, hotels need to monitor and manage performance including financial performance and also performance related to their customers, internal business processes, learning and growth, and social and environmental operations. To improve and maintain performance, a hotel needs to place considerable importance on pursuing competitive strategy, building up alliances with other organisations (e.g., other hotels, travel agents, and suppliers of inputs and services) and making the best use of appropriate information including management accounting system (MAS) information. However, the empirical research on the ways and means of improving sustainable hotel performance, specifically in developing countries like Indonesia, is scant. As a result, hotel managers in countries like Indonesia may have limited knowledge of how they can help their hotel achieve sustainable performance. This study aims to help fill the knowledge gap of Indonesian hotel managers by providing empirical evidence on how competitive strategy, strategic alliance, and managerial use of MAS information 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.