THE STRATEGIC CHOICES IN ACHIEVING TOURISM'S COMPETITIVENESS AND PERFORMANCE AMONG HOTELS IN INDONESIA

The current debate between external strategy and a resource-based approach as a driver of competitiveness is rarely investigated in a developing region. This study investigates whether an external focus or a resource -based strategy is better for leveraging the hotel industry's competitiveness and performance in a developing area in Indonesia. The authors obtained saturated responses from 204 managers and analyzed them with PLS-SEM's two-stage and repeated indicator approach while interviewing some of them. This study developed a formative model in PLS-SEM as a better method for investigating an organization's performance than a reflective approach. Quantitative analysis revealed the resource -based view as a better basis for supporting hotels' competitiveness and performance; however, the interview r evealed considerable concerns over arising externalities. This paper suggests that hotel managers improve their internal core competence instead of wasting resources and worrying about external issues.