The Impact of Competitive Strategies on the Organizational Performance of Hotels in the Kingdom Of Saudi Arabia: The Moderating Role of Digital Transformation

Abstract

This study aimed to explore the impact of competitive strategies—namely cost leadership, differentiation, and focus strategies—on organizational performance, which includes customer satisfaction, internal processes, and learning and growth dimensions, in hotels located in the Kingdom of Saudi Arabia. Additionally, the study sought to identify the moderating role of digital transformation in the relationship between competitive strategies and organizational performance. The study employed a descriptive analytical quantitative methodology. Basic statistical analyses such as frequencies, percentages, means, and standard deviations were conducted using SPSS, while structural equation modeling (SEM) and hypothesis testing were performed using Smart PLS 4. The study population comprised all managers working in seven five-star hotels in Riyadh, totaling 160 managers. The study used a comprehensive survey sampling technique. The results indicated a statistically significant positive relationship between competitive strategies and organizational performance. Furthermore, digital transformation was found to positively moderate and enhance this relationship. The study recommended the need to strengthen the comprehensive implementation of competitive strategies in hotels, with particular emphasis on developing cost leadership, differentiation, and focus strategies in line with market demands and customer needs. Keywords: Competitive Strategies, Organizational Performance, Digital Transformation, Hotels in the Kingdom of Saudi Arabia.