Linkages among nonmarket strategies, market strategies, organizational values and performance in the hotel industry: preliminary evidence from Hong Kong

This study investigates political nonmarket strategy (NMS) by addressing its links to market strategy, values orientation, and multiple dimensions of firm performance–competitive positioning, customer orientation, and financial outcomes–in the Hong Kong hotel industry. Data were collected from hotel managers and analyzed utilizing partial least squares (PLS) methods. Cost leadership was identified as a driver of financial performance in Hong Kong, while differentiation based on quality appears to help firms in terms of competitive positioning but drives neither financial nor customer-based performance. Political NMS helps firms with competitive positioning and customer orientation but does not appear to drive financial performance. Values orientation was identified as a significant driver of all three dimensions of firm performance.