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This is the accepted manuscript of an article published by Emerald Publishing Limited in Journal of Knowledge Management in 2018, available online: https://www.emeraldinsight.com/doi/abs/10.1108/JKM-08-2017-0363
This study proposes to study the nature of the relationship between competitor orientation, a strategy based on low prices and hotel business performance, and to test if a low-price strategy plays a mediating role in the relationship between competitor orientation and business performance. A structural equation modeling approach is used, and a sample from the Italian hotel industry was used to evaluate the proposed hypotheses. Results show that competitor orientation is positively related to business performance and a strategy based on low prices. Furthermore, it is found that a low-price strategy has adverse effects on business performance. Additionally, the mediating role of the low-price strategy was not confirmed.
