Journal of Hospitality and Tourism Management 31 (2017) 265e272

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Journal of Hospitality and Tourism Management

journal homepage: http://www.journals.elsevier.com/journal-of-hospitality-
and-tourism-management

The effect of applied resources on competitive advantage in hotels:

Mediation and moderation analysis
Romina Cheraghalizadeh*, Mustafa Tmer
Department of Business Administration, Eastern Mediterranean University, Famagusta, North Cyprus, Via Mersin 10, Turkey

a r t i c l e i n f o a b s t r a c t

Article history: Purpose: This study aims to consider the effects of organizational human and physical resources on
Received 21 July 2016 customer relationship quality. It also investigates the effect of market and environmental dynamism as
Received in revised form external factors in these associations. Furthermore, this study evaluates the mediation effect of customer
15 January 2017
relationship quality between applied resources and competitive advantage.
Accepted 4 April 2017
Methodology: This research was implemented in North Cyprus. The number of hotel employees who
participated was 297 with response rate of 85%. Convenience sampling method was considered for data
collection of this study. Questionnaire was prepared in English and subjected to back-translation process
Keywords:
Managerial competence
afterwards. Nine employees were considered for the pilot study. Psychological separation and Harmans'
Trait competitiveness single factor test were conducted as procedural and statistical potential remedies of common method bias.
Market dynamism Exploratory factor analysis and Cronbach' alpha were applied to check existence of validity and reliability
Environmental dynamism of questionnaire. Correlation and regression analysis were used to evaluate the relationship between
Customer relationship quality variables and the method of Baron and Kenny (1986) was considered to evaluate mediation effects.
Competitive advantage Results: Findings indicated that managerial competence, employees' trait competitiveness and physical
resources affect customer relationship quality positively. There is also a positive relationship between
customer relationship quality and competitive advantage. Results showed that customer relationship
quality fully mediates the relationship between managerial competence and competitive advantage; it
also partially mediates the relationship between trait competitiveness and competitive advantage and
also between physical resources and competitive advantage. Findings showed that environmental
dynamism doesn't moderate the relationship between predictors and customer relationship quality,
whereas market dynamism moderates the association between managerial competence and customer
relationship quality as well as the relationship between trait competitiveness and customer relationship
quality. However, market dynamism doesn't moderate the relationship between physical resources and
customer relationship quality.
The theoretical contribution: While several studies have focused the effect of various factors on customer
behavior and organizational performance; there is still a paucity of empirical study to consider the effects
of human and physical factors at the same time on organizational outcomes. This study evaluates this issue
with a broader view and considers both internal and external factors to better understand which envi-
ronment is more affective of organizational performance. Furthermore, North Cyprus is an island desti-
nation (Katircioglu et al., 2007) and they differ in notion of tourism image (Tasci et al., 2007). Therefore,
there is still a need to study about success and failure factors in this kind of tourism destination.
Practical implications: As the role of managers and employees are important in building a high quality
relationship with customers, it is critical to hire competent managers and employees with a competitive
spirit in the organization. To make new recruitments, motivation and personality of the applicants need
to be considered. To enhance competition among employees, managers can apply different strategies
such as setting an award and promotion system. Furthermore, for an organization to adapt to the market
dynamism, managers have to understand the market and their competitors, make a plan, and hire
qualied staff and so on. Participation in training courses is necessary to understand and learn more
about employees, competitors and the market environment.
2017 The Authors.

* Corresponding author.
E-mail addresses: r.cheraghalizadeh@yahoo.com (R. Cheraghalizadeh), mustafa.tumer@emu.edu.tr (M. Tmer).

http://dx.doi.org/10.1016/j.jhtm.2017.04.001
1447-6770/ 2017 The Authors.
266 R. Cheraghalizadeh, M. Tmer / Journal of Hospitality and Tourism Management 31 (2017) 265e272
1. Introduction
In the 20th century, tourism and hospitality industry became an
outstanding instrument for economic growth (Katircioglu, Arasli, &
Ekiz, 2007). It is a leading and the most critical industry for many
tourism destinations (Goh & Law, 2002) and specically in North
Cyprus where the headmost sector to generate income is tourism
(Katircioglu et al., 2007). Various determinants affect the perfor-
mance of hotels, which apply various resources to achieve
competitive advantage and improve their performance. Hotels hire
human and physical resources to meet their goals. However,
despite spending exorbitant costs, some of them may fail in their
businesses. Hotels need to keep themselves at such a level that
enables them to compete with their competitors, such that they can
continue to survive. To achieve these purposes, they should pay
careful consideration to the strategies, and apply instruments to
deal with them. Hiring competent personnel, qualied supervisors,
creating comfortable and accessible resources are critical issues for
hotels to succeed. Hotels are also affected by some external factors
that force them to adapt themselves to the dynamic environment
around. Therefore; organizations need to pay particular attention to
applying human and physical resources as well as managing those
resources which are affected by external factors.
This study investigates various factors that affect customer
relationship quality and competitive advantage. It considers the
several internal and external factors to understand better the issues
inuencing the success of the hotel industry. Various researches
have been conducted to evaluate the effects of the determinants on
customer preference and behavior (eg. Hernandez, Jimenez, and
Martin, 2010; Choi & Kim, 2013; Park & Park, 2015) as well as
organizational performance (eg. Neill & Rose, 2006; Chang, Park, &
Chaiy, 2010). Especially, the study of Leonidou et al. (2013) has
investigated the factors affecting competitive advantage and per-
formance. But despite the researches that have been done, there is
still a paucity of empirical study focused the effect of human and
physical factors at the same time on organizational outcomes (eg.
Beleska-Spasova, Glaister, & Stride, 2012; Leonidou et al., 2013).
Furthermore, this study considers both internal and external fac-
tors for better understanding of which environment is more af-
fective of organizational performance; and rare studies have
incorporated previously in this matter (eg. Leonidou et al., 2013).
Moreover, in many cases tourists differ between destinations taking
into the account (Cai, 2002); therefore, there is still a need to work
on the effects of internal and external factors on hotels' success and
failure in the island destinations because they differ in notion of
tourism image (Tasci, Gartner, & Cavusgil, 2007).
2. Theoretical background
2.1. Theories
2.1.1. Resource-based view
This view describes elements that create abiding competitive
advantage. According to this view, rm resources have extremely
effect organizational performance and competitive advantage.
Indeed, resources are considered as main drivers of business per-
formance (Peteraf, 1993). According to Barney's (1991) unique,
worth and non-sustainable resources lead to implementing stra-
tegies that generate competitive advantage. Leonidou et al. (2013)
have indicated that organizations achieve competitive advantage
by considering strategies that t in to an organization's strengths
and avoiding its weaknesses (Barney and Clark, 2007). Irrespective
of the tangible or intangible nature of the resources, they must be
managed and compiled because if the best resources are not
managed effectively, they do not lead to generate competitive
advantage. In this study, it is assumed that hotels hire human and
physical resources and these are the antecedents of competitive
advantage. These resources lead to better performance if they
interact and are managed effectively. Study of Leonidou et al. (2013)
has considered the irritants and outcomes based on green mar-
keting in the hotel industry. Their ndings have shown that
considering on the capabilities and resources enables organizations
to improve the level of environmental marketing.
2.1.2. Resource dependence theory (RDT)
To retain the available resources and organizational success, it is
necessary to consider external as well as internal factors. RDT is
about how an organization is affected by the external environment
and factors. This theory is based on the notion that resources are
essential to organizational prosperity; and control on and avail-
ability of resources are according to the power concept. Careful
consideration is needed to protect accessibility of resources.
This study assumes that organizational resources are affected by
the external environment. As external environment changes over
time and does not remain stable for long, this study considers
environmental and market dynamism as the two external factors
that may affect on organizational performance. Study of Leonidou
et al. (2013) has shown that by formulation and implementing
the environmental marketing strategy, competitive advantage will
be created.
2.2. The hypothesized relationships
Fig. 1 shows each of the relationships and conceptual constructs
of this study. All hypothesized relationships are discussed next.
2.2.1. Organizational resources and customer relationship quality
2.2.1.1. Managerial competence and customer relationship quality.
According to Resource-based view, managerial competence is one
of the resources that may help an organization to achieve higher
performance. Based on study conducted by Omorede, Thorgren,
and Wincent (2013), managers with low competence nurture a
level of disappointment, indifference, confusion and anxiety in the
work environment. Competency empowers individuals to perform
better in their tasks and manage situations effectively (Wenden,
1995). Kaleka (2002) has investigated the effects of various ele-
ments on export competitive advantage. In his study, dimensions of
sources and capabilities are examined to attain better under-
standing of their effects on cost, service and product advantage in
export markets. Findings showed that against all odds, experi-
mental resources do not seem to play an essential role in the suc-
cess of cost, service and product export for competitive advantage.
Lau (2011) has indicated that managerial competence is an in-
strument to expand market-strategy orientation and in turn by
considering the strategies, costs can be managed and performance
can be enhanced. Andreas (2004) has indicated the importance of
managerial competence on operational and nancial success of
organization. He has mentioned that high quality management is
the important predictor of organizational performance.
H1. There is a positive relationship between managerial compe-
tence and customer relationship quality.
2.2.1.2. Trait competitiveness and customer relationship quality.
Trait competitiveness refers to the characteristic of enjoying
competition with a tendency to win as well as perform better in
comparison to others (Spence & Helmreich, 1983). Karatepe (2010)
has worked on the effects of several antecedents in providing high
quality service to customers. According to his research, trait
competitiveness is one of the key talents that employees carry and
 R. Cheraghalizadeh, M. Tmer / Journal of Hospitality and Tourism Management 31 (2017) 265e272
Market Dynamism
Managerial
Competence
Trait Competitiveness
Physical Resources
Environmental Dynamism
Fig. 1. Conceptual framework.
an important antecedent of service recovery performance. That is,
employees act better to satisfy customers when they show
competitive behavior. Ul-Hassan, Kibriya, and Nawaz (2013) have
investigated the effects of employees' personal characteristics on
job outcomes. They have mentioned that due to competition, em-
ployees make their targets and try to optimize and use the work
conditions to show better performance. It may lead to create better
relationship with customers. Plotkin (1987) has shown the positive
relationship between trait competitiveness and higher
performance.
H2. There is a positive relationship between trait competitiveness
and customer relationship quality.
2.2.1.3. Physical resources and customer relationship quality.
According to Fry, Stoner, and Hattwick (2004) physical resources
are assets that are used to create targeted products. They include
applied physical technologies in the organization, raw materials,
equipments, location and instruments (Barney, 1991). Beleska-
Spasova et al. (2012) has shown that managerial factors, knowl-
edge and technology affect organizational performance rather than
physical resources. According to their study, human resource has
more crucial role than physical resources to achieve higher per-
formance. Gu and Jung (2013) have considered the effects of in-
formation resources and capabilities on business processes. Indeed,
they have reviewed the inuence of several theories such as
resource-based view, the information systems, success model in
the process of success and performance ow of organizations. They
have emphasized on the importance of applying information sys-
tem in enhancing organizational performance. It seems that
convenient business process helps organizations to build a better
customer relationship quality. Leonidou et al. (2013) have indicated
that physical resources are vital to continue and improve green
marketing strategy as they support and help build the right prod-
ucts and services. Therefore, it builds a better relationship with
customers who are highly involved with environmental issues as a
result of growing environmental awareness.
H3. There is a positive relationship between physical resources
and customer relationship quality.
2.2.2. Customer relationship quality and competitive advantage
Feng, Sun, and Zhang (2010) have considered the inuence of
customers on competitive advantage based on resource-based
view. Results have reected the importance of customers' role in
267
Customer Relationship
Competitive Advantage
Quality
the business environment, which is the outcome of goods and
services quality, reliability and exibility. Chang, Wong, and Fang
(2014) have indicated that customer relationship management
leads to simplies customer-based performance, such as positive
word of mouth and satisfaction; and in this manner, performance
increases. Study of Shannahan, Bush, Shannahan, and Moncrief
(2015) has disclosed that consideration the customer behavior
plays an essential role on the performance of salespersons and fa-
cilitates achieving their goals.
H4. There is a positive relationship between customer relation-
ship quality and competitive advantage.
2.2.3. Mediation role of customer relationship quality
According to the literature, resources such as modern technol-
ogy cannot be the only predictor of success in organizations
because they cannot market the good relationship with the cus-
tomers (eg. Yim, Anderson, and Swaminathan, 2005; Mohammed &
Rashid, 2012). Customer relationship management enables an or-
ganization to understand customers better and enhance their
performance (Fozia, Shiamwama, & Otiso, 2014). Actions, strategies
and resources of organizations may help them make high quality
relationship with customers and thereby this way improve their
performance. Another study has focused on how managerial
competences inuence relationship quality; and their effects on
competitive advantage have been investigated in small and me-
dium enterprises (Ismail, Ahmad Domil, & Isa, 2014). Findings of
the research have demonstrated the signicant positive relation-
ships between managerial competences, relationship quality and
competitive advantage; and relationship quality is considered a
partial mediator in the association between several antecedents
and competitive advantage.
H5. Customer relationship quality mediates the relationship be-
tween (a) managerial competence (b) trait competitiveness (c)
physical resources and competitive advantage.
2.2.4. Moderating roles of market dynamism and environmental
dynamism
2.2.4.1. Market dynamism as a moderator. Organizational perfor-
mance is affected by several factors, such as organizational culture,
structure, market strength, etc.; and dealing with resources cannot
be considered as the only factor affecting the performance of an
organization (Mohammed & Rashid, 2012). Study of Leonidou et al.
(2013) has considered on the irritants and outcomes based on green
268 R. Cheraghalizadeh, M. Tmer / Journal of Hospitality and Tourism Management 31 (2017) 265e272
marketing in the hotel industry. Findings have shown that
considering the capabilities and resources enables organizations to
improve the level of environmental marketing. By formulation and
implementing the environmental marketing strategy competitive
advantage is created. Furthermore, their study has indicated that
organizations compete by applying the adequate resources. Day
(1994) has indicated that performance is affected by the dynamic
market environment and the ability of an organization to deal with
such an environment is an important factor to achieve success.
Based on RDT, capable organizations are able to adapt themselves
to the dynamic market environment and take actions that are not
easy to imitate for other competitors (Fang & Zou, 2009). Lim and
Lee (2015) have worked on dynamism in online market. They
have mentioned that loyalty program helps an organization to
achieve higher prots in the online market rather than the ofine
market. Nonaka and Nicosia (1979) have emphasized the impor-
tance of organizational structures to manage market and its
importance to deal with this issue.
H6. Market dynamism moderates the relationship between (a)
managerial competence, (b) trait competitiveness, (c) physical re-
sources and customer relationship quality.
2.2.4.2. Environmental dynamism as a moderator. According to the
literature, dynamic environment is described as an unpredictable
and changing environment that enhances uncertainty for people
and organizations acting within (eg. Dess & Beard, 1984). Based on
RDT, organizations are affected by their surrounding environment.
Therefore, changing in the environment may inuence organiza-
tional performance and outcomes. In such environment individuals
and organizations almost experience pressure due to uncertainty in
decision making (Waldman, Ramirez, House, & Puranam, 2001).
Several researches have considered the moderating role of envi-
ronment on the performance of managers and organizational
outcomes (Ensley, Pearce, & Hmieleski, 2006). For instance, the
study of Homburg, Krohmer, and Workman (1999) has shown that
the managerial team has lesser effect on organizational perfor-
mance when faced with a dynamic environment. Eisenhardt (1989)
has indicated that managers in uncertain environments consider
information that is more reliable when making decision. According
to Wright and Snell (1998) employees carry three general factors,
which are skills, behavior and practices. These characteristics are
essential to face dynamic and uncertain environment. Andreas
(2004) has mentioned that organizations in a statistic environ-
ment can manage their resources better than when operating in a
dynamic environment. Environment affects customers behavior
and long-term loyalty (Chen & Popovich, 2003). Study of Glick,
Miller, and Huber (1993) demonstrated that in stable environ-
ment there is not signicant relationship between rational decision
making and performance.
H7. Environmental dynamism moderates the relationship be-
tween (a) managerial competence, (b) trait competitiveness, (c)
physical resources and customer relationship quality.
3. Methodology
3.1. Procedure
Data for this study was collected from hotel employees and
managers in North Cyprus, which is an island destination in the
Mediterranean Sea (Katircioglu et al., 2007). Three four-star and
eight ve-star hotel employees participated in this study. The
convenience sampling method was used for data collection and
hotel managers and senior personnel were asked to help in
distributing and gathering the questionnaires. Participants were
requested to answer the questions in a self-administrative manner.
In the design of questionnaire, psychological separation was
used as a potential remedy of common method bias (Podsakoff,
MacKenzie, & Podsakoff, 2003). Items of predictors were sepa-
rated with items of the other variables using a cover letter. The
letter indicated that there is no relationship between two parts of
questionnaire.
The number of questionnaires distributed were 351, out of
which 323 were returned and only 297 questionnaires were useful
with a total response rate of 85%. Questionnaires were prepared in
English originally but as people in North Cyprus are Turkish, the
questionnaires were subjected to translation in Turkish and back-
translation to English afterwards. English and Turkish versions of
questionnaire were distributed between the respective re-
spondents (Turkish and foreign personnel). Furthermore, nine
employees were considered for the pilot study. Results showed that
all questions were clear in content and there was no ambiguity in
understanding.
To ensure the existence of convergent and discriminant validity,
the data was exposed to a series of exploratory factor analysis using
SPSS.
Cronbach' alpha was applied to assess the internal reliability of
the questionnaires. Relationships between variables were evalu-
ated by correlation and regression analysis. Method of Baron and
Kenny (1986) was applied to evaluate mediation effects.
3.2. Measures
This research used the existing measures present in relevant
literature. Managerial competence was evaluated using four items
adopted by Martina, Hana, and Jiri (2012). Four items adopted by
Brown, Cron, and Slocum (1998) assessed trait competitiveness.
Assessing organizations' physical resources was done by using 3
items adopted by Morgan, Kaleka, and Katsikeas (2004) and 3 items
by Kaleka (2002) evaluated customer relationship quality.
Furthermore, four items by Tuan and Yoshi (2010) measured
environmental dynamism and seven items by Sarin and Mahajan
(2001) assessed market dynamism. To evaluate competitive
advantage, three items adopted by Tuan and Yoshi (2010) were
applied. All items related to the study variables were asked based
on ve-point Likert Scale. To nd respondents' proles, age, gender,
marital status and educational level, specic questions were asked
in the questionnaire.
4. Finding
4.1. Respondents' information
Table 1 displays respondents' information. Majority of re-
spondents were male (63%) and only 37% of them were female. The
percentage aged between 18 and 27 was 32% and 31% of them were
between 28 and 37 years. The age range of 22% of the participants
was between 38 and 47 years and the rest (14%) were 48 years old
and more. Majority of respondents were married (67%) and 33% of
them were single. Participants who had primary school education
were 12% and 29% of them had received secondary and high school
education. Around 46% percent of the respondents had a bachelor's
degree and the rest (12%) possessed graduate degrees.
4.2. Reliability, validity, exploratory factor analysis
Table 2 measure reliability and validity of the instruments of this
study. To ensure the reliability of the questionnaires, Cronbach
 R. Cheraghalizadeh, M. Tmer / Journal of Hospitality and Tourism Management 31 (2017) 265e272 269

Table 1 the cut-of-level of 0.40. However, one item of market dynamism

Respondents information (n 297). was removed, as it did not t. Total variance explained collectively
Frequency Percentage by all factors is 62.85%.
Age
In order to ensure that common method bias does not distort
18e27 95 32.0 the result of this research, Harmans' single factor test was con-
28e37 93 31.3 ducted (Podsakoff et al., 2003). Results indicate that only 26.56% of
38e47 66 22.2 variance is explained by one factor. Therefore, common method
48e57 39 13.1
bias does not seem to be a threat to the relationships between study
>58 4 1.3
Total 297 100.00 variables.
Gender
Male 187 63.0
Female 110 37.0 4.3. Relationship between variables
Total 297 100.00
Marital status Table 3 shows mean, standard deviation and correlations be-
Married 198 66.7 tween variables. Results indicate that there are positive signicant
Single 99 33.3
Total 297 100.00
relationships between variables.
Education Table 4 displays regression analysis. According to the results,
Primary School 35 11.8 there is a signicant positive relationship between managerial
Secondary and high School 87 29.3 competence and customer relationship quality (b 0.13, t 2.01,
Bachelor degree 138 46.5
p < 0.05). Therefore, H1 is supported. In addition, 4 indicates the
Graduate degree 37 12.5
Total 297 100.00 signicant positive relationships between employees' trait
competitiveness and customer relationship quality (b 0.19,
t 3.05, p < 0.01) and between Physical resources and customer
relationship quality (b 0.18, t 2.82, p < 0.01). Thus, H2 and H3
alpha was conducted. Results show that all cronbach' alpha values
are supported.
ranged between 0.71 and 0.85 and were higher than the common
Furthermore, Table 4 shows the relationship between customer
cut-of-level of 0.70. This demonstrates the reliability of the
relationship quality and competitive advantage is signicantly
questionnaires.
positive (b 0.11, t 2.03, p < 0.05). Thus, H4 is supported.
To test the existence of convergent and discriminant validity,
To analyze the mediation effect, this study applied the method
exploratory factor analysis was conducted, which produced 7 var-
of Baron and Kenny (1986). The rst step is related to the direct
iables. All loadings ranged between 0.56 and 0.84 and were above
effect of predictors on the criterion variable. Table 3 shows the
relationships between MC and CA (r 0.33, p < 01), ETC and CA
Table 2 (r 0.36, p < 01), PR and CA (r 40, p < 01) are signicant.
Reliability, validity and exploratory factor analysis. Therefore, rst condition is met. Second step refers to the rela-
Items Factor loading a % of Variance tionship between predictors and mediator. Results show that there
are positive signicant associations between MC and CRQ (r 0.30,
Managerial competence 0.77 8.80
- MC1 0.72 p < 01), ETC and CRQ (r 0.33, p < 01), PR and CRQ (r 0.32,
- MC2 0.61
- MC3 0.79
- MC4 0.64 Table 3
Employees trait competitiveness 0.74 5.91 Mean, standard deviation and correlation between variables.
- ETC1 0.62
Variable Mean SD 1 2 3 4 5 6 7
- ETC2 0.79
- ETC3 0.63 1.MC 2.26 0.75 1.00
- ETC4 0.64 2.ETC 2.25 0.73 0.47a 1.00
Physical resources 0.76 4.94 3.PR 2.28 0.83 0.44a 0.45a 1.00
- PR1 0.74 4.MD 2.32 0.77 0.43a 0.39a 0.37a 1.00
- PR2 0.69 5.ED 2.46 0.81 0.20a 0.22a 0.18a 0.42a 1.00
- PR3 0.74 6.CRQ 2.36 0.83 0.30a 0.33a 0.32a 0.34a 0.20 a
1.00
Market dynamism 0.80 26.56 7.CA 2.16 0.89 0.33a 0.36a 0.40a 0.24a 0.27a 0.28a 1.00
- MD1 0.69
SD indicates Standard Deviation.
- MD2 0.68 a
Correlations are signicant at the 0.01 level.
- MD3 -a
- MD4 0.68
- MD5 0.63
- MD6 0.58 Table 4
- MD7 0.72 Regression analysis, moderation effects.
Environmental dynamism 0.73 5.29
Variable CRQ CA
- ED1 0.56
- ED2 0.75 Step1 Step1 Step2
- ED3 0.78
t t t
- ED4 0.73
b b
Customer relationship quality 0.71 4.30 MC 0.13 2.01 MC 0.12 1.97 0.11 1.73
- CRQ1 0.66 ETC 0.19 3.05a ETC 0.19 3.03a 0.16 2.64a
- CRQ2 0.79 PR 0.18 2.82a PR 0.27 4.41a 0.25 4.04a
- CRQ3 0.77 CRQ e e 0.11 2.02b
Competitive advantage 0.85 7.04 F 18.60 29.91a 4.13a
- CA1 0.81 R2 0.16 0.22 0.23
- CA2 0.82 DR2 0.16 0.22 0.01
- CA3 0.84 a
Correlations are signicant at the 0.05 level.
a b
Removed due to lack of t. Correlations are signicant at the 0.01 level.
270 R. Cheraghalizadeh, M. Tmer / Journal of Hospitality and Tourism Management 31 (2017) 265e272

p < 01); therefore, the second condition is also met. The third dynamism, this effect does not have signicant effect on customer
condition is related to the relationship between the mediator and relationship quality. Therefore, H6c is not supported. Furthermore,
the criterion variable. The relationship between CRQ and CA is evaluating the effect of environmental dynamism is shown in
positive and signicant (r 0.27, p < 01) and therefore, the third Table 5. Interaction effects of predictors and environmental dyna-
condition is met. mism do not have signicant effect on customer relationship
Forth condition refers to the indirect relationship between quality. Therefore, H7a, H7b and H7c are not supported.
predictors and criterion variables after entering the mediation ef-
fect. Table 4 shows that after entering the effect of customer rela- 5. Discussion
tionship quality as a mediator, the relationship between managerial
competence and competitive advantage is insignicant (b 0.12, Findings show that achieving competitive advantage needs
t 1.97, p < 0.05 to b 0.11, t 1.73). It shows that customer dealing with several internal and external factors. Results of this
relationship quality fully mediates the relationship between research offer considerable insights about the effects of applied
managerial competence and competitive advantage, thereby sup- resources on the customer relationship quality and competitive
porting H5a. According to Table 4, the relationship between em- advantage.
ployees' trait competitiveness and competitive advantage after Consistent with the previous empirical studies (e.g., Wenden,
entering the mediation effect is still signicant (b 0.19, t 3.03, 1995) the ndings of this research provide support for the signi-
p < 0.01 to b 0.16, t 2.64, p < 0.01). Similarly, the indirect effect cant relationship between managerial competence and customer
of physical resources on competitive advantage with the mediator relationship quality. In this study it is obvious that competent
is signicant (b 0.27, t 4.41, p < 0.01 to b 0.25, t 4.04, managers perform better in their tasks and manage situations
p < 0.01). Therefore, the results indicated that customer relation- effectively; they are more likely to build a higher relationship
ship quality partially mediates the relationship between em- quality with customers (Omorede et al., 2013).
ployees' trait competitiveness and competitive advantage; as well Also this study showed the signicant positive relationship be-
as between physical resources and competitive advantage. Thus, tween trait competitiveness and customer relationship quality.
H5b and H5c are partially supported. That is, employees act better to satisfy customers when they show
The next set of analysis is about the moderation effect. In the competitive behavior and optimize the available resources to show
rst step, predictors (managerial competence, employees' trait higher performance. This empirical nding conrms the results of
competitiveness, and physical resources) were entered separately previous researches (eg. Karatepe, 2010).
in the analysis, whereas in the second step, the effect of market Consistent with the ndings of the prior studies (eg. Leonidou
dynamism and environmental dynamism were entered individu- et al., 2013) physical resources are considered to be signicant
ally. In the nal step, the interaction terms were entered to the predictors of customer relationship quality. This suggests that
analysis. physical resources are vital to simplify and build a better relation-
Evaluating the effect of market dynamism is shown in Table 5. ship with customers.
After entering the interaction effects, the relationship between In addition, competitive advantage is found to be a signicant
managerial competence on customer relationship quality is sig- consequence of customer relationship quality. When customers are
nicant (b 0.18, t 3.14, p < 0.01), thus supporting H6a. More- satised with one service provider, they show a greater willingness
over, the relationship between trait competitiveness and customer to continue with; and in turn it enhances competitive advantage.
relationship quality after entering the interaction effect is signi- Customer relationship quality partially mediates the relation-
cant (b 0.24, t 4.18, p < 0.01) and H6b is supported. However, ship between managerial competence and competitive advantage.
regarding the interaction between physical resource and market A possible reason for this result is that customer relationship
quality is mostly related to the issues that customers are directly
connected with as well. Managers are almost in situations where
Table 5 they do not interact with customers directly. Therefore, their de-
Regression Analysis predicting CRQ. cisions reect in the performance of employees or in the quality of
Interactive Effects Involving MD 1 Interactive Effects Involving ED physical resources. Results of this study show that customer rela-
tionship quality fully mediates the relationship between trait
t b t
competitiveness and competitive advantage as well as between
Variable Variable physical resources and competitive advantage. Customers
1.MC 0.30 5.37a 1.MC 0.30 0.37a communicate with employees directly and deal with various
2.MC 0.18 3.10a 2.MC 0.27 4.78a physical resources, which affects the quality of customer relation-
MD 0.26 4.38a ED 0.15 2.67b
ship, and in turn, inuences competitive advantage.
3.MC 0.18 3.14a 3.MC 0.27 4.87a
MD 0.30 5.06a ED 0.15 2.61b
The results show that the market dynamism moderates the
MCxMD 0.19 3.51a MCxED 0.09 1.72 relationship between managerial competence and customer rela-
tionship quality; as well as between trait competitiveness and
1.ETC 0.33 6.10a 1.ETC 0.33 6.10a customer relationship quality. Managers and employees have the
2.ETC 0.24 4.09a 2.ETC 0.30 5.47 a important roles in dealing with a dynamic market; they attempt to
MD 0.25 4.28a ED 0.14 2.46b
3.ETC 0.24 4.18a 3.ETC 0.30 5.47a
control the changes happening around them. They try to use their
MD 0.28 4.82a ED 0.13 2.34b abilities and the other capacities to have the organization adapt to
ETCxMD 0.14 2.66a ETCxED 0.07 1.26 such dynamism. Environmental dynamism does not moderate the
1.PR 0.32 5.82a 1.PR 0.32 5.82a relationship between predictors and customer relationship quality.
2.PR 0.22 3.91a 2.PR 0.29 5.31a
A possible reason is changing in environment (eg. regulations,
MD 0.26 4.48a ED 0.15 2.73a
3.PR 0.23 3.99a 3.PR 0.29 5.28a customers demographics and so on) cannot be affected by organi-
MD 0.27 4.68a ED 0.15 2.68a zations largely. In addition, environmental change is same for all
PRxMD 0.08 1.42 PRxED 0.09 1.75 organizations at the same level. Therefore, inconsistent with pre-
a
Correlations are signicant at the 0.01 level. vious researches (eg. Ensley et al., 2006; Homburg et al., 1999),
b
Correlations are signicant at the 0.05 level. environmental change does not moderate the relationship between
 R. Cheraghalizadeh, M. Tmer / Journal of Hospitality and Tourism Management 31 (2017) 265e272
predictors and customer relationship quality.
5.1. Implications
This study shows the importance of human resource in an or-
ganization to build a successful relationship with the customers. An
organization needs to hire competent managers and employees
with a competitive spirit to improve organizational performance.
Managers are put in the situations that enable them to patronize
their employees in different ways. Therefore, they can motivate
personnel by setting rewards, promotions, and so on. Furthermore,
the ndings underscore the importance of physical resources in the
performance of an organization. In other words, when organiza-
tions apply good physical resources, it helps them satisfy their
customers as well as simplify the connection between customers
and the organization. Therefore, managers need to know and apply
physical resources that may help the organization to improve its
performance.
Result shows that environmental dynamism doesn't moderate
the relationship between applied human and physical resources
and their outcomes. However, market dynamism has the signicant
effect in these associations. Therefore, managers need to revise the
plans and actions while facing such a market changes. They should
be exible to manage these changes and eager to learn more about
possible alterations and dynamism. It is necessary that managers
understand the market and know their competitors, make a plan,
hire qualied staff, do other ontime requirements, and so on.
5.2. Limitation
This study is based on cross-sectional design and it might in-
crease the possibility of common method bias. Based on study of
Podsakoff et al. (2003), this research tried to control the effect of
common method bias using statistical remedy as well as procedural
remedy. Procedural remedy is done by applying psychological
separation and statistical remedy by applying Harman's single
factor test. The result of Harmans' single factor test showed that the
effect of common method bias is controlled in this research. For
future studies, applying the longitudinal design as well as time lag
between questionnaires is recommended.
To collect data, questionnaires were not distributed directly by
the researchers. Managers and senior employees helped for data
collection. It might comprise the effect of social desirable bias.
However, envelopes were given to participants to cover their re-
sponses and making them anonymous. For future studies, it is
benecial to distribute questionnaire without intermediation by
managers and other staff.
Furthermore, considering competitive advantage with its
various aspects (eg. price, quality, and innovation, and so on) for
better understanding of the effect of applied resources on each
individual aspect is recommended.
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