Does Environmental Munificent Matter in the Relationship between Cost Leadership Strategy and Hotels Performance

Abstract

The significant achievement in any marketplace is competitive advantage. This study examines cost leadership strategy on performance hotels with moderation effect of Environmental Munificent. The study employs census sampling to collect data from the manager/owner of hotels Kano State Nigeria. The data were analyzed using Partial Least Square (PLS) method one of the 2nd Generation statistical tools of analysis. The findings of this study indicate that cost leadership strategy have no direct significant positive relationship with hotels performance, the result signifies the appropriateness of PLS in analysis and has contributed better understanding of cost leadership strategy influence on hotels performance, surprisingly the result of indirect relation reveals insignificant relations. Similarly, finding of this study indicate that Hotels managers need to pay attention on cost leadership and environmental munificence when taking the managerial decisions. Based on these findings, theoretical and practical implications and future research suggestions were discussed.