Articlegreen2011

Information technology applications and competitive advantage in hotel companies

Anil Bilgihan · Fevzi Okumuş · Khaldoon Nusair · David J. Kwun

180 citations0/0 files storedJournal of Hospitality and Tourism Technology

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Information Technology Governance and Strategy Information Systems Education and Curriculum Development Corporate Governance and Management

Abstract

Purpose This paper aims to propose a conceptual framework that illustrates how information technology (IT) applications may lead to competitive advantage in hotel companies. Design/methodology/approach The paper is written based on a synthesis of previous literature in this area. Findings Multiple areas need to be carefully evaluated in developing and implementing IT projects so that they can lead to competitive advantage in hotel companies. There are four closely related areas when analyzing IT decisions in hotels, which include coherence between the business strategy and IT decision, types of IT applications, intended benefits of IT decisions, and decision‐making style. Technology sophistication, management skills, and integration of resources are key issues when implementing IT decisions. Investments into IT applications in hotel companies can lead to superior IT competencies and IT capabilities, which can subsequently result in lower cost, agility, innovation, added value for customers, and better customer service. However, not all IT investments may result in positive outcomes or their sustainability may be short lived. In addition, there can be a lag time between making IT investment decisions and seeing their intended outcomes. Practical implications There are multiple areas and issues that need to be considered in making and implementing IT investment decisions if they are to contribute to the company's competitive advantage. Hotel companies need to be selective in their IT investment decisions and look at each IT investment from the strategic management perspective. Originality/value This is one of the first articles in the hospitality field that offers a theoretical framework on how IT applications can lead to competitive advantage in hotels. It also offers numerous theoretical and practical implications. Therefore, this paper should help hotel executives and researchers in evaluating IT projects in hotel companies.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1997Dynamic capabilities and strategic management 1991The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation 2003The dynamic resource‐based view: capability lifecycles 1985How information gives you competitive advantage 1994The Dynamic Capabilities of Firms: an Introduction 2000A Resource-Based Theory of Strategic Alliances

Cited by

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