Factors determining hotel activity outsourcing. An approach based on competitive advantage

Abstract

Purpose - The purpose of this study is to examine the levels of the main hotel outsourcing activities to identify the factors that determine the use of external suppliers for these activities. Design/methodology/approach - A model was developed that analyzes the relationship between competitive advantage and outsourcing and how the relationship between competitive advantage and activity performance is affected by whether an activity is outsourced or not. Moreover, the study builds a matrix called ``outsourcing and competitive advantage where each of the activities can be placed. The study was carried out with a representative sample of hotels in a tourist destination, analyzing 12 activities from different departments in the hotels. Findings - The study results indicate that there is a positive relationship between the competitive advantage of an activity and its outcome. In addition, the findings show that the relationship between competitive advantage and activity performance is stronger when the activity is developed internally than when it is outsourced. The study supports a negative relationship between the degree of outsourcing an activity and its competitive advantage. In addition, the findings showed that a change in the way of managing the outsourcing is determined by its performance. Practical implications - This study aims to help managers make decisions about outsourcing by considering the perspective of the competitive advantage. Each hotel can situate the activities in the matrix created and compare itself to the sector mean for a strategic positioning of the outsourcing. Originality/value - Most studies analyze asset specificity as a key variable; however, the competitive advantage has not been used in previous studies, in spite of being a better defined variable in the literature. This study classifies the activities into core and non-core and establishes their relationship with outsourcing. It also studies how the way of managing an activity (outsourcing or in-house) moderates the relationship between competitive advantage and performance. These aspects have not. been analyzed in the literature.