Industry Forces, Competitive and Functional Strategies and Organizational Performance: Evidence from Restaurants in Istanbul, Turkey

Abstract

Each of industry forces, competitive and functional strategies and organizational performance has been subject to so many studies presented in literature. However, there is a lack of combination of all and consensus on the role of each in restaurant businesses. Thus, this study examines the relationships among industry forces, competitive and functional strategies and organizational performance within the context of “well-known branded” restaurants in Turkish hospitality industry. The study employs a questionnaire that evaluates the attitudes of restaurants of those themes in Istanbul, Turkey without any sampling procedure. Results indicate that competitive strategy of cost leadership is significantly related to bargaining power of suppliers. Functional strategy regarding the brand image relates significantly to the competitive strategy of differentiation. Organizational performance is in a significant relation with functional strategies of human resources and information technologies.

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