Gaining Competitive Advantage By Exploiting Internet Of Things (IoT) Technology

Abstract

Internet of Things (IoT) refers to the billions of physical devices around the world that are now connected to the internet, collecting and sharing data. The common managerial and theoretical concern is to build IoT applications momentum, in order to bolster possible weaknesses and stimulate their adoption by individuals. This research explores the influence of IoT applications in hospitality industry. Since IoT applications are considered to add value to hotel guests, their influence, from a potential guest’s perspective, over a hotel’s primary activities and operations is examined. Hotels, by adding value to their service provisions, could achieve higher customer satisfaction and loyalty levels, conferring a sustainable competitive advantage. Resourced-Based View model was used, because it concentrates on how a hotel’s key resources can create value for its customers to meet their needs, which in turn enhances its ability to gain competitive advantage. For current research purposes, a questionnaire was created and distributed to evaluate whether a hotel’s IoT applications are associated with choice and guests’ preference of an IoT enabled hotel. Findings revealed that all studied IoT applications are hotel services enhancement instruments. Prospective guests’ preference of an IoT enabled hotel over another one, provides support that IoT applications drive guests’ satisfaction and loyalty, by recognizing it as value for money and reason for revisits.