Influence of differentiation strategy on performance of hotels: The moderating role of environmental munificence

Abstract

This study investigates whether environmental munificence directly and indirectly predicts the relationship between differentiation strategy and performance. A total of 83 managers from hotels in Kano state were participated. A questionnaire was administered to collect information on socio-demographics and on differentiation strategy, environmental munificence, and performance. Results revealed that differentiation strategy, environmental munificence was positively associated with performance. Environmental munificence fully moderates the relationships of differentiation strategy and performance. This article, apart from its contribution to the business strategy research, has meaningful implications for managers and policy-makers, the future research directions are discussed.