Technology induced competitive advantage: a case of US lodging industry

Abstract

Purpose – The purpose of this research is to assist hospitality organizations to better deploy and manage their information technology (IT) resources and enhance overall effectiveness by demonstrating how technologies can be used as a competitive weapon at various levels from a managerial perspective. Both academia and practitioners attempt to understand the driving factors of IT-induced competitive advantage. While some firms enjoy competitive advantage through IT, others struggle to gain such competitive advantage. Design/methodology/approach – AHLA E-Commerce and Technology Committee members were interviewed for their knowledge and insight toward the perceived problem. The committee comprises technology executives who meet twice per year to discuss the changing face of technology and e-business in the hospitality industry. Participants of this study consisted of vice presidents, CTO/CIOs of hotels, CEOs of hospitality technology vendors and academics who focus on hospitality technology research. Findings – Findings indicate that IT-induced competitive advantage is possible when hotels choose to integrate all the possible technologies in the organization with a harmony that creates synergy. To create IT-induced competitive advantage, firms also need to allocate resources (human, knowledge and capital) effectively and invest in innovative and sophisticated technologies. Research limitations/implications – IT can be used to create competitive advantage by means of differentiation, innovation, channel domination, cost reductions and efficiency improvements. Practical implications – Four distinct stages of IT usage were identified. The first is the operation stage which includes technologies that are solely used to manage daily business operations. The second is the enhancement stage where IT applications are used to increase productivity and efficiency. IT applications at the strategic stage improves intra-organization and inter-organizational business processes. Finally, IT applications at the transformation stage enable companies to achieve the maximum competitive advantage. Originality/value – The current research serves to fill the gap between academia and industry.