Impacts of cost leadership, service innovation, customer value creation on business performance during the Covid-19 Era

Gonul Akin; Erkut Altindag

doi:10.36096/brss.v7i1.720

Authors

Gonul Akin Istanbul Beykent University, Istanbul https://orcid.org/0000-0002-7279-4511
Erkut Altindag Dogus University, Istanbul https://orcid.org/0000-0003-0173-0454

DOI:

https://doi.org/10.36096/brss.v7i1.720

Keywords:

Cost Leadership; Service Innovation; Customer Value Creation; Business Performance; Hospitality Industry; COVID-19.

Abstract

In today's competitive business landscape, organizations constantly seek strategies to enhance their market position and profitability. One of the pivotal inquiries that many industry experts and scholars are delving into is: How do cost leadership, service innovation, and customer value creation influence business performance? Cost leadership, often seen as a way to gain a competitive edge through operational efficiency, might offer immediate financial benefits. Given the frequent economic challenges, it has become increasingly crucial for hotel businesses to embrace strong competitive and marketing strategies. The hospitality sector, particularly susceptible to the ramifications of such crises, has long been scrutinized to discern the strategic measures they employ during turbulent times. This empirical investigation, encompassing insights from 437 industry professionals, underscores that initiatives centered on corporate service innovation yield a direct and favorable augmentation in organizational performance. However, the study found inconclusive evidence regarding the mediating impact of value creation through customer engagement.

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