The Influence of Competitiveness Factors on Sustainable Business Performance in the Hotel Industry: From the Perspective of the Perception of Hotel Service Users

Milica Josimović, Dragan Ćoćkalo, Sead Osmanović, Milena Cvjetković and Nikola Radivojević ()
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Milica Josimović: Technical Faculty “Mihailo Pupuni”, University of Novi Sad, 21000 Novi Sad, Serbia
Dragan Ćoćkalo: Technical Faculty “Mihailo Pupuni”, University of Novi Sad, 21000 Novi Sad, Serbia
Sead Osmanović: Faculty of Economics, Technical University of Košice, 040 01 Košice, Slovakia
Milena Cvjetković: School of Engineering Management, University Union–Nikola Tesla, 11000 Belgrade, Serbia
Nikola Radivojević: Academy at Applied Studies, “Šumadija”, 34000 Kragujevac, Serbia

Sustainability, 2025, vol. 17, issue 5, 1-21

Abstract: The aim of this study is to examine the impact of key competitiveness factors on sustainable business performance in the hospitality sector through the application of an integrated approach, from the perspective of hotel service users. The research was conducted on a sample of 1640 hotel guests who stayed in hotels operating in the Republic of Serbia, Croatia, and Slovenia. Utilizing a structural equation modeling (SEM) framework, the study meticulously analyzed various competitiveness factors: service quality, service, service recovery, hotel user satisfaction, loyalty and discretionary behavior and dysfunctional consumer behavior. The results of the research reveal that all identified key factors significantly impact the sustainable performance of hotel operations. The findings suggest that hotels must prioritize these elements to enhance their competitiveness and ensure ongoing success in a challenging market environment. Notably, one intriguing finding is that loyalty does not serve as a buffer in the relationship between customer dissatisfaction and dysfunctional behavior, indicating that even loyal customers can exhibit negative behaviors when their expectations are not met. This underscores the importance of addressing guest satisfaction proactively to mitigate potential adverse outcomes and retain a loyal customer base. Moreover, this study provides valuable insights for hotel management, highlighting the necessity for holistic strategies that not only aim to improve guest experiences but also consider the intricate dynamics between various competitiveness factors that ultimately contribute to the sustainability and profitability of the hospitality industry. Rejecting the sub-hypothesis that loyalty among hotel service users moderates the impact of dissatisfaction on the expression of dysfunctional consumer behavior indicates the need to review certain theories that comprise the dominant theoretical framework in the field of hospitality. This implies the need for further analysis of the validity of the dominant theories in the hospitality industry, especially in defining the conditions under which their postulates hold indisputably. Second, further examination of the role of loyalty is needed, since there are different types of loyalty.

Keywords: competitiveness factors; hotel industry; sustainable business performance; SEM (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:5:p:2277-:d:1606189

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