The moderating effect of environmental variables on business strategy and performance of hotels in Batam Island, Indonesia

• Published in: Current Issues in Hospitality and Tourism Research and Innovations
• Main Author: Riyadi A.; Mohd Radzi S.
• Format: Book chapter
• Language: English
• Published: CRC Press 2012
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85055137881&doi=10.1201%2fb12752-37&partnerID=40&md5=d68936529699a2e40982c2ef303719c4

The increase of hotel industry in Batam City in recent decades pre-empted a growth in national and international hotel chains, and lately the emergence of global chains. The growth has not only occurred in the number of chains, but also in their size and segment market especially from Singapore and Malaysia. The highly volatile and competitive business environment has encouraged the hotel industry in Batam to provide high standards of quality services to the customers. This paper focuses on the moderating effect of environmental variables on the business strategy and performance relationship among one to four star hotel categories in Batam City. Focus respondents were selected from the total population of 44 hotels in Batam City. Moderated Regression Analysis (MRA) was conducted to test the hypothesis. Results indicated that the moderating effect of environmental variables on business strategy and performance relationship is significant. © 2012 Taylor & Francis Group, London.