Percieved competitive forces,competitve strategis and organizational performance: An implementation on hospitality industry in Turkey

The intensity of competition in an industry have affects on strategy decisions and determines the ability of the organizations to sustain above average returns and performance. Intensity of the competition is a result of economic and technological characteristics of the industry. Perceived competition intensity based on strength of the five basic competitive forces; threat of new entrants, bargaining power of buyers, rivalry between existing competitors, threat of substitute products and bargaining power of suppliers. For the present study, a complementary model is developed based on relationship between perceived competitive forces, competitive strategy and organizational performance. Although the relationships are discussed as pairwise models in the previous studies, it has not been used to assess the relationships as a whole. The present study was conducted to describe the Hotel Management Industry competitive environment in Turkey and to assess the impacts of competitive forces on competitive strategy and performance. The study primarily use Porter's five forces model to assess competitive forces and Porter's generic strategy classification as competitive strategy types. Organizational performance is classifies as financial and nonfinancial as previous studies also prefer to assess performance. For measuring the related dimensions, indicators those are supposed to measure competitive forces, competitive strategies and organizational performance, are formed as measurement model. For measuring competitive forces, differently from the all previous studies, formative measurement model is established where there is a casual relationship from indicators to the competitive forces. To measure competitive forces and the organizational performance, a reflective model is established, which is a general assumption for almost all measurement models in the literature. A survey is conducted to obtain related data for the application of the research model to assess relationships. Survey questions are formed from the indicators of the dimensions and a 75-questioned survey is sent to responders via online and over a research company. Strategic decision makers of the hotels are composes the target responder group. 187 questionnaires is sent, but only 88 questionnaires (with a rate of %48) is convenient to use in model application. The probable reasons are incomplete questionnaires, biased responses of responders and the variations in positions of responders. The complementary model that includes perceived industry specific competitive forces, competitive strategies and organizational performance dimensions and their sequential relationships provide results, which are in the same line with previous researches in many aspects. When the all results are evaluated together, for the hospitality industry proposed relations are supported. The research aims to provide a basis for the future researches related with the research model and hospitality industry results.