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Enhancing organizational performance through strategic alignment of cost leadership strategy and competitor orientation


Kaliappen, Narentheren and Abdullah, Haim Hilman (2013) Enhancing organizational performance through strategic alignment of cost leadership strategy and competitor orientation. Middle-East Journal of Scientific Research, 18 (10). pp. 1411-1416. ISSN 1990-9233

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Abstract

This study adds the body of knowledge that relates Porter’s cost leadership strategy and competitor orientation to organizational performance in context of hotel industry in Malaysia.The existing literature's show that there were limited empirical studies, which considers the alignment between cost leadership and competitor orientation and its impact on organizational performance. A total 475 sets of questionnaires distributed to three to five star rating hotel’s managers in Malaysia and only 24% of it, which is 114 returned. Of these 114 respondents, only 54 hotels implementing cost leadership and the rest follows differentiation strategy.For this paper, the researcher focused on those 54 hotels which implementing cost leadership strategy.The findings show that cost leadership strategy has significant effect on organizational performance and competitor orientation.In addition, competitor orientation has positive impact on performance. Present study found that competitor orientation mediates the nexus of cost leadership and organizational performance.This study is bridging the gap and presenting the significance of aligning cost leadership and competitor orientation in hotel industry.It also provides some practical implications for the decision making process that relates with alignment of cost leadership, competitor orientation and organizational performance nexus.

Item Type: Article
Uncontrolled Keywords: Cost Leadership Strategy; Competitor Orientation; Organizational Performance; Hotel Industry in Malaysia
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Dr. Narentheren a/l Kaliappen
Date Deposited: 10 Nov 2016 06:41
Last Modified: 10 Nov 2016 06:41
URI: http://repo.uum.edu.my/id/eprint/19171

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