Are Competitive Strategies and Strategic Alliances Role in Improving Sustainability Performance?

  • Desak Nyoman Sri WERASTUTI Brawijaya University, Indonesia
  • Eko Ganis SUKOHARSONO Brawijaya Univesity, Indonesia
  • Erwin SARASWATI Brawijaya Univesity, Indonesia
  • Yeney W. W. PRIHATININGTIAS Brawijaya Univesity, Indonesia


Performance measurement in the hospitality sector is not only demanded on financial performance but also expected in the non-financial sector so as to create environment and business goals that are environmentally friendly. Sustainable performance in the hotel sector is expected to provide awareness and demands that hotel managers pay more attention to environmental aspects so as to enhance the hotel's reputation for being environmentally friendly, comfortable with customers, can directly improve services to customers so as to create competitive strategies and strategic alliances for customers. This study aims to determine whether competitive strategies and strategic alliances can play a role in improving sustainable performance. This research was conducted in all 4 and 5-star hotels in Bali Province using questionnaires given to 154 respondents with 125 samples (questionnaire returns). The method used was Structural equation model (SEM). The results showed that the relationship of competitive strategies to sustainable performance had a positive and significant effect, the strategic alliance relationship to sustainable performance had a positive and significant influence as well as the strategic alliance relationship by mediating competitive strategies towards sustainable performance had a positive and significant effect.


[1] Aaker, D.A. 1992. Strategic Market Management 3rd ed., New York : John Wiley and Sons, Inc.
[2] Abernethy, M. A., and Lilis, A. M. 1995. The impact of manufacturing flexibility on management control system design. Accounting, Organizations and Society, 20(4): 241–258.
[3] Afsah, S., Blackman, A., and Ratunanda, D. 2000. How do public disclosure pollution control programs work? Evidence from Indonesia. Discussion Paper, 00-44, 1-21. Available at:
[4] Afsah, S., Laplante, B., and Makarim, N. 1996. Program-based pollution control management: The Indonesian PROKASIH program. Asian Journal of Environmental Management, 4(2): 75–93.
[5] Anand, B. N., and Khanna, T. 2000. Do firms learn to create value? The case of alliances. Strategic Management Journal, 21(3): 295–315.
[6] Atkinson, H., and Brander, B. J. 2000. Performance measurement in the UK hotel industry: Rethinking the folly of measuring the wrong things? Paper presented at the 9th CHME Hospitality Research Conference, Huddersfield, UK.
[7] Atkinson, H., and Brown, J. 2001. Rethinking performance measures: Assessing progress in UK hotels. International Journal of Contemporary Hospitality Management, 13(3): 128–135.
[8] Avci, U., Madanoglu, M., and Okumus, F. 2011. Strategic orientation and performance of tourism firms: Evidence from a developing country. Tourism Management, 32(1): 147–15.
[9] Bader, E. E. 2005. Sustainable hotel business practices. Journal of Retail and Leisure Property, 5(1): 70–77.
[10] Bangchokdee, S. 2015. Linking competitive strategy, product lifecycle, The Use of Broad Scope MAS Information, and Organisational Performance: A Comparative Study of Food-Processing and Electronics Industries in Thailand. Unpublished PhD thesis, Griffith University, Australia.
[11] Becerra, M., Santalo, J. and Silva, R. 2013. Being better vs being different: differentiation, competition, and pricing strategies in the Spanish hotel industry. Tourism Management, 34(1): 71–79.
[12] Bleeke, J. and Ernst, D. 2011. The Way to Win in Cross-Border Alliances. Harvard Business Review, 69(6): 127–135.
[13] Bordean, O.N. et al. 2010. The use of Michael Porter’s generic strategies in the Romanian hotel industry. International Journal of Trade, Economics and Finance, 1(2): 173–178.
[14] Bohdanowicz, P., and Martinac, I. 2007. Determinants and benchmarking of resource consumption in hotels— the Case study of Hilton International and Scandic in Europe. Energy and Buildings, 39(1): 82–95.
[15] Boo, H. C., and Mattila, A. S. 2002. A hotel restaurant brand alliance model: Antecedents and consequences. Journal of Food Service Business Research, 5(2): 5–23.
[16] Brown, J. B., and McDonnell, B. 1995. The balanced scorecard: Short-term guest or long-term resident? International Journal of Contemporary Hospitality Management, 7(2/3): 7-11.
[17] Bucklin, L. P., and Sengupta, S. 1993. Organizing successful co-marketing alliances. Journal of Marketing 57(2): 32–46.
[18] Chan, E. S. W. 2008. Barriers to EMS in the hotel industry. International Journal of Hospitality Management 27(2): 187–196.
[19] Chathoth, P. K. 2008. Strategic alliances in the hospitality industry. In M. Olsen and J. Zhao (Eds), Handbook of strategic hospitalityategic management (pp. 215–231). New York, US: Routledge.
[20] Chathoth, P. K., and Olsen, M. D. 2003. Strategic alliances: A hospitality industry perspective. Hospitality Management, 22(4): 419–434.
[21] Chen, F.-H., Hsu, T.-S., and Tzeng, G.-H. 2011. A balanced scorecard approach to establishing a performance evaluation and relationship model for hot spring hotels based on a hybrid MCDM model combining DEMATEL and ANP. International Journal of Hospitality Management 30(4): 908–932.
[22] Chenhall, R. H., and Morris, D. 1986. The impact of structure, environment, and interdependence on the perceived usefulness of management accounting systems. The Accounting Review 61(1): 16–35.
[23] Cheng, E. W. L., Li, H., Love, P. E. D., and Irani, Z. 2004. Strategic alliances: A model for establishing a long-term commitment to inter-organisational relations in construction. Building and Environment 39(4): 459–468
[24] Chin, W. W. 1998. The partial least squares approach for structural equation modelling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). Mahway, NJ, US: Lawrence Erlbaum Associates.
[25] Chung, L. H., and Parker, L. D. 2008. Integrating hotel environmental srategies with management control: A structuration approach. Business Strategy and the Environment, 17(4): 272–286.
[26] Clarke, A., and Chen, W. 2007. International hospitality management: Concepts and cases. Oxford, UK: Elsevier.
[27] Claver-Cortes, E., Molina-Azorin, J. F., Pereira-Moliner, J., and Lopez-Gamero, M. D. 2007. Environmental strategies and their impact on hotel performance. Journal of Sustainable Tourism, 15(6): 663–679.
[28] The contractor, F. J., and Lorange, P. 2002. The growth of alliances in the knowledge-based economy. International Business Review, 11(4): 485–502.
[29] Christoffersen, J. 2013. A review of the antecedents of international strategic alliance performance: Synthesized evidence and new directions for core constructs. Journal of Management Reviews, 15: 66–85.
[30] Doz, Y.L. 1996. The evolution of cooperation in strategic alliances: Initial conditions or learning processes? Strategic Management Journal, 17: 55–83.
[31] Doz, Y.L., Olk, P.M. and Ring, P.S. 2000. Formation processes of RandD consortia: which path to take? Where does it lead? Strategic Management Journal, 21(3): 239–266.
[32] Das, T. K., and Teng, B. 2000. A resource-based theory of strategic alliances. Journal of Management, 26(1): 31–61.
[33] Day, G. and Wensley, R. 1988. Assessing Advantage : A Framework for Diagnostic Competitive Superiority. Journal of Marketing, 52(3).
[34] Denton, G. A., and White, B. 2000. Implementing a balanced-scorecard approach to managing hotel operations. Cornell Hotel and Restaurant Administration Quarterly 41(1): 94–107.
[35] Dess, G. G., and Robinson, R. B. 1984. Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal 5(3): 265–273.
[36] Dev, C. S., Brown, J. R., and Zhou, K. Z. 2007. Global brand expansion: How to select a market entry strategy. Cornell University, 48(1): 13–27.
[37] Draulans, J., deMan, A., and Volberda, H. W. 2003. Building alliance capability: Management techniques for superior alliance performance. Long Range Planning, 36(2): 151–166.
[38] Eisenhardt, K.M. and Schoonhoven, C.B. 2014. The resource-based view of strategic alliance formation: strategic and social effects in entrepreneurial firms. Organization Science, 7(2):136–150.
[39] Elkington, J. 1998. Partnerships from cannibals with forks: The triple bottom line of 21st- century business. Environmental Quality Management, 8(1): 37–52.
[40] Epstein, M. J. 2008. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Sheffield, UK: Greenleaf Publishing Ltd.
[41] Epstein, M. J., and Roy, M. 2003. Linking social and environmental actions to financial performance. The Journal of Corporate Citizenship, 9(1): 79–96.
[42] Epstein, M. J., and Wisner, P. S. 2001. Using a balanced scorecard to implement sustainability. Environmental Quality Management, 11(2): 1–10.
[43] Espino-Rodriguez, T. F., and Padron-Robaina, V. 2004. Outsourcing and its impact on operational objectives and performance: A study of hotels in the Canary Islands. International Journal of Hospitality Management 23(3): 287–306.
[44] Evans, N. 2005. Assessing the balanced scorecard as a management tool for hotels. International Journal of Contemporary Hospitality Management 17(5): 376–390.
[45] Figge, F., Hahn, T., Schaltegger, S., and Wagner, M. 2002. The sustainability balanced scorecard—Linking sustainability management to business strategy. Business Strategy and the Environment, 11(5): 269–284.
[46] Font, X. 2002. Environmental certification in tourism and hospitality: progress, process and prospects. Tourism Management 23(3): 197–205.
[47] Garrigos-Simon, F. J., and Marques, D. P. 2005. Competitive strategies and performance in Spanish hospitality firms. International Journal of Contemporary Hospitality Management 17(1): 22–38.
[48] Gatignon, H., and Deshpande, R. 1994. Competitive analysis. Marketing Letters 5(3): 271–287.
[49] Geller, A. N. 1985. Tracking the critical success factors for hotel companies. The Cornell HRA Quarterly, 25(4): 76–81.
[50] Gil, M. J. A., Jimenez, J. B., and Lorente, J. J. C. 2001. An analysis of environmental management, organizational context and performance of Spanish hotels. The International Journal of Management Science, 29(6): 457–471.
[51] Go, F. M., and Appelman, J. 2001. Achieving global competitiveness in SMEs by building trust in interfirm alliances. In S. Wahab and C. Cooper (Eds), Tourism in the age of globalisation (pp. 183–197). London, UK and New York, US: Routledge.
[52] Gray, R., and Bebbington, J. 2000. Environmental accounting, managerialism and sustainability: Is the planet safe in the hands of business and accounting? Advances in Environmental Accounting and Management, 1(1): 1–44.
[53] Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., and Tatham, R. L. 2010. Multivariate data analysis (7th ed.). Upper Saddle River, NJ, US: Pearson Education.
[54] Hair, J. F., Ringle, C. M., and Sarstedt, M. 2011. PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2): 139–151.
[55] Haktanir, M., and Harris, P. 2005. Performance measurement practice in an independent hotel context: A case study approach. International Journal of Contemporary Hospitality Management, 17(1): 39–50.
[56] Halim. 2010. Jamsostek has yet to run optimally. Available at:
[57] Harris, P. J., and Brown, J. B. 1998. Research and development in hospitality accounting and financial management. International Journal of Hospitality Management, 17(2): 161–181.
[58] Harris, P. J., and Mongiello, M. 2001. Key performance indicators in European hotel properties: General managers' choices and company profiles. International Journal of Contemporary Hospitality Management, 13(3): 120–127.
[59] Hayes, R. H., and Abernathy, W. J. 1980. Managing our way to economic decline. Harvard Business Review, 58(4): 67–77.
[60] Hofstede, G. 1980. Culture's consequences: International differences in work-related values. Beverly Hills, CA, US: Sage Publications.
[61] Holcomb, J. L., Upchurch, R. S., and Okumus, F. 2007. Corporate social responsibility: What are top hotel companies reporting? International Journal of Contemporary Hospitality Management, 19(6): 461–475.
[62] Hoque, Z. 2004. A contingency model of the association between strategy, environmental uncertainty and performance measurement: impact on organizational performance. International Business Review, 13(4): 485–502.
[63] Hoque, Z., and James, W. 2000. Linking balanced scorecard measures to size and market factors: Impact on organizational performance. Journal of Management Accounting Research 12(1): 1–17.
[64] Hubbard, G., Rice, J., and Beamish, P. 2008. Strategic management: Thinking, analysis, action (3rd ed.). NSW, Australia: Pearson Education.
[65] Hulland, J. 1999. Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2): 195–204.
[66] Jennings, D. F., Rajaratnam, D., and Lawrence, F. B. 2003. Strategy-performance relationships in service firms: A test for equifinality. Journal of Managerial Issues, 15(2): 208–220.
[67] Jonsson, C. and Devonish, D. 2014. An exploratory study of competitive strategies among hotels in a small developing Caribbean state. International Journal of Contemporary Hospitality Management, 21(4): 491–500.
[68] Kaplan, R. S., and Norton, D. P. 1992. The balanced scorecard measures that drive performance. Harvard Business Review, 70(1): 71–79.
[69] Kaplan, R. S., and Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Boston, MA, US: Harvard Business School Press.
[70] Kaplan, R. S., and Norton, D. P. 2001. The strategy-focused organization. Boston, MA: Harvard Business School Press.
[71] Kemp, M. 2001. Corporate social responsibility in Indonesia: Quixotic dream or confident expectation? Geneva, Switzerland: United Nations Research Institute for Social Development.
[72] Larcker, D. F. 1981. The perceived importance of selected information characteristics for strategic capital budgeting. The Accounting Review, 56(3): 519–528.
[73] Lambe, C. J., Spekman, R. E., and Hunt, S. D. 2002. Alliance competence, resources, and alliance success: conceptualisation, measurement, and initial test. Journal of the Academy Marketing Science, 30(2): 141–158.
[74] Lawson, B., Petersen, K. J., Cousins, P. D., and Handfield, R. B. 2009. Knowledge sharing in interorganizational product development teams: The effect of formal and informal socialization mechanisms. The Journal of Product Innovation Management, 26(2): 156–172.
[75] Lee, H., Kim, D. and Seo, M. 2013. Market valuation of marketing alliances in East Asia: Korean evidence. Journal of Business Research, 66: 2492–2499.
[76] Li, H., and Atuahene-Gima, K. 2001. Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44(6): 1123–1134.
[77] Lo, V. H. Y., and Yeung, A. H. W. 2004. A practical framework for a strategic alliance in Pearl River Delta manufacturing supply chain: A total quality approach. International Journal of Production Economics, 87(3): 231–240.
[78] Luo, X., Rindfleisch, A., and Tse, D. K. 2007. Working with rivals: The impact of competitor alliances on financial performance. Journal of Marketing Research 44(1): 73–83.
[79] Maurer, T. J., and Pierce, H. R. 1998. A comparison of Likert scale and traditional measures of self-efficacy. Journal of Applied Psychology, 83(2): 324–329.
[80] McCaskey, D. and Symes, S. 2014. Travel Inn: everything you want for a good night's sleep - 100 per cent satisfaction guarantee or your money back. Journal of Contemporary Hospitality Management, 16(3):166–174.
[81] Mensah, I. 2006. Environmental management practices among hotels in the greater Accra region. International Journal of Hospitality Management, 25(3): 414–431.
[82] Mia, L., and Patiar, A. 2001. The use of management accounting systems in hotels: An Exploratory Study. Hospitality Management, 20(2): 111–128.
[83] Ministry of Tourism. 2015. Laporan akuntabilitas kinerja Kementerian pariwisata Tahun 2015. Available at:
[84] Molina-Azorin, J. F., Claver-Cortes, E., Pereira-Moliner, J., and Tari, J. J. 2009. Environmental practices and firm performance: An empirical analysis in the Spanish hotel industry. Journal of Cleaner Production, 17(5): 516–524.
[85] Monczka, R. M., Petersen, K. J., Handfield, R. B., and Ragatz, G. L. 1998. Success factors in strategic supplier alliances: the buying company perspective. Decision Sciences, 29(3): 553–577.
[86] Moorman, C. 1995. Organizational market information processes: Cultural antecedents and new product outcomes. Journal of Marketing Research, 32(3): 318–335.
[87] Nasution, H. N., and Mavondo, F. T. 2008. Customer value in the hotel industry: what managers believe they deliver and what customer experience. International Journal of Hospitality Management, 27(2): 204–213.
[88] Ozturen, A., and Sevil, G. 2009. Supply chain management as a sustainable performance booster for the accommodation enterprises: Evidence from North Cyprus tourism sector. International Journal of Business and Management 4(2): 97–111.
[89] Pansiri, J. 2009. Strategic motives for linin the travel sector of tourism. International Journal of Hospitality and Tourism Administration, 10(2): 143–173.
[90] Parkhe, A. 1991. Interfirm diversity, organizational learning, and longevity in global strategic alliances. Journal of International Business Studies, 22(4): 579–601.
[91] Patiar, A., and Mia, L. 2008. The interactive effect of market competition and use of MAS information on performance: Evidence from the upscale hotels. Journal of Hospitality and Tourism Research, 32(2): 209–234.
[92] Patiar, A., and Mia, L. 2009. Transformational leadership style, market competitions and departmental performance: evidence from luxury hotels in Australia. International Journal of Hospitality Management, 28(2): 254–262.
[93] Perrini, F., and Tencati, A. 2006. Sustainability and stakeholder management: The need for new corporate performance evaluation and reporting systems. Business Strategy and the Environment, 15(5): 296–308.
[94] Picard, M. 1997. Cultural tourism, nation-building, and regional culture: The making of a Balinese identity. In M. Picard and R. E. Wood (Eds), Tourism, ethnicity, and the state in Asian and Pacific societies (pp. 181–214). Honolulu, Hawaii: University of Hawaii Press
[95] Poon, A. 1993. Tourism, technology, and competitive strategies. Wallingford, UK: CAB International.
[96] Porter, M.E. 1980. Competitive strategy: techniques for analyzing industries and competitors., New York: Free Press.
[97] Preble, J. F., Reichel, A., and Hoffman, R. C. 2000. Strategic alliances for competitive advantage: Evidence from Israel's hospitality and tourism industry. International Journal of Hospitality Management, 19(3): 327–341.
[98] Rindfleisch, A., and Moorman, C. 2003. Interfirm cooperation and customer orientation. Journal of Marketing Research, 40(4): 421–436.
[99] Sarkar, M. B., Echambadi, R. A. J., and Harrison, J. S. 2001. Alliance entrepreneurship and firm market performance. Strategic Management Journal, 22(6–7): 701–711.
[100] Schaltegger, S. and Wagner, M. 2006. Integrative management of sustainability performance, measurement, and reporting. International Journal of Accounting, Auditing and Performance Evaluation, 3(1): 1–19.
[101] Shrader, R. C. 2001. Collaboration and performance in foreign markets: The case of young high- technology manufacturing firms. Academy of Management Journal, 44(1): 45–60.
[102] Sitawati, R. 2014. Strategic motive and partner selection criteria in international joint ventures from Dutch and Indonesian perspectives. Unpublished Master Thesis, Hanzehogeschool and Anglia Ruskin University, Groningen and Cambridge.
[103] Sudarmadi. 2015. Makin Eksis di Indonesia, Accor Genjot Aliansi. Available at:
[104] Sparks, B., and Weber, K. 2008. The service encounter. In P. Jones (Ed.), Handbook of hospitality operations and IT (pp. 109–138). Oxford, UK: Elsevier.
[105] Teddlie, C., and Tashakkori, A. 2003. Major issues and controversies in the use of mixed methods in the social and behavioural sciences. In A. Tashakkori and C. Teddlie (Eds) Handbook of mixed methods in social and behavioural research (pp. 3–50). Thousand Oaks, CA, US: Sage.
[106] Teece, D. J. 1992. Competition, Cooperation, and Innovation: Organizational arrangements for regimes of rapid technological progress. Journal of Economic Behavior and Organization, 18(1): 1–25.
[107] Tietenberg, T., and Wheeler, D. 1998. Empowering the community: Information strategies for pollution control. Paper presented at the Frontiers of Environmental Economics conference, Airlie House, Virginia, US.
[108] Triandis, H. C. 1995. Individualism and collectivism. Colorado, US: Westview Press.
[109] Winata, L. 2015. Manufacturing automation, strategic alliance, information technology and organisational performance: Evidence from Indonesia (Unpublished doctoral thesis). Griffith University, Australia.
[110] Winata, L., and Mia, L. 2005. Information technology and the performance effect of managers' participation in budgeting: Evidence from the hotel industry. International Journal of Hospitality Management, 24(1): 21–29.
[111] World Bank. 2006. Environment matters: East Asia and Pacific Region. Available at:
[112] World, H. 1982. Systems under indirect observation using PLS. In C. Fornell (Ed.), A second generation of multivariate analysis (Vol. 1, pp. 325–347). New York, US: Praeger.
[113] Wright, W. F. 1977. Self -insight into financial information. Accounting, Organizations, and Society, 2(4): 323–331.
[114] Zhao, J., and He, W. 2008. Competitive methods of multinational hotel companies in the new millennium (2000-2007). In M. Olsen and J. Zhao (Eds.), UK: Elsevier, Ltd.
How to Cite
WERASTUTI, Desak Nyoman Sri et al. Are Competitive Strategies and Strategic Alliances Role in Improving Sustainability Performance?. Journal of Environmental Management and Tourism, [S.l.], v. 9, n. 7, p. 1498-1511, mar. 2019. ISSN 2068-7729. Available at: <>. Date accessed: 19 may 2019. doi: