COMPETITIVE STRATEGY, ORGANIZATION STRUCTURE AND PERFORMANCE IN THE LODGING INDUSTRY: AN EMPIRICAL ASSESSMENT OF MILES AND SNOW'S (1978) PERSPECTIVES OF ORGANIZATIONS (ENVIRONMENT)

A primary objective of this study was to analyze and determine the characteristics of competitive strategies in a single industry of service organizations, the lodging industry. Subsequently, the competitive methods and strategic characteristics of the competitive strategy profiles that emerged in the lodging industry were compared to the strategic profiles of Miles and Snow's "generic" typology. Similarities and differences unique to the subject industry were noted and discussed.;This was accomplished by first examining the nature of competitive strategies within the lodging industry. Subsequently the relationships among competitive strategies, three dimensions of organization structure, company size, and five measures of firm performance were examined. Furthermore to more rigorously control for environmental effects this analysis was undertaken for the industry as a whole as well as within four distinct subsegments of the industry.;Six hypotheses were developed, that dealt with the nature of competitive strategy types; and the relationship among strategy types and (1) the degree of organization structure, (2) organizational performance, and (3) organizational performance where a strategy/structure match had been achieved.;The findings of this study tend to indicate that the nature of the industry or environment in which organizations compete may be an important factor in determining the content of competitive strategies employed in that environment. Furthermore, not only do industry characteristics tend to affect the content and appearance of competitive strategy profiles, but different segments within an industry also impact the appearances of different competitive profiles.;In addition, this study has attempted to test: (1) Hypothesized relationships between competitive strategy type and three dimensions of organization structure (centralization, formalization, and specialization). (2) Differences in performance of firms grouped according to their competitive strategy profiles. (3) Hypothesized differences in performance of firms that achieve a "match" between competitive strategy and organization structure and those that do not.;However, the perspective that organizational variables are in a direct relationship with contextual variables is not supported by this study. The critical link appears to lie in the decision makers evaluation to the organization's environment and the choices they consequently make regarding the organizations competitive strategy and its internal structure.;The structure that is appropriate to a particular competitive strategy profile is not constant. Rather, the nature of the operating environment intervenes in the appropriate strategy/structure "match" relationship. Organizational performance is contingent upon a "match" of the strategic choices of strategy and structure, but the "appropriate" choice appears to be modified by subenvironmental factors.