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The Moderation Effect of External Environment Turbulence in Tourism Sector: Comparative Analysis of Pakistan & Thailand

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  • Mirza Waseem Abbas*

    (PhD Scholar (SZABIST-Islamabad), Pakistan)

  • Dr. Masood ul Hassan

    (Chairman Department of Commerce Bahauddin Zakariya University, Multan, Pakistan)

Abstract

Tourism sector in Pakistan is facing a situation of severe crisis, plagued by poor management, lack of infrastructure, weak and ineffective policy and implementation. The looming cloud of terrorism has further diminished the role the sector could play in the country and the region’s development. Recent military operations against terrorist elements and the inauguration of China Pakistan Economic Corridor (CPEC) are being hailed as a new phase, bringing more opportunities for business. However, it may also bring new challenges to the existing industry as well. The Thailand tourism industry faced similar kind of situation but it sailed out. The current research paper examined the moderating effect of external environmental factors and relationship of Customer Relationship Management Effectiveness (CRMe) with business performance and business innovation. A sample of 382 respondents was selected. The respondents belonged to Tourism sector in Pakistan and Thailand. The responses were tested and analyzed using Structural Equation Modeling in AMOS. It was observed that Technological Turbulence, Market Turbulence and Competitive Intensity significantly moderate the relation of CRMe with business innovation and business performance. This study is significant as it highlights the importance of external environmental factors for business performance and innovation Vis a Vis the effectiveness of an organization’s CRM capability. Results of this study hold significant implications for policy makers and stake holders.

Suggested Citation

  • Mirza Waseem Abbas* & Dr. Masood ul Hassan, 2018. "The Moderation Effect of External Environment Turbulence in Tourism Sector: Comparative Analysis of Pakistan & Thailand," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 672-684:2.
    • Handle: RePEc:arp:tjssrr:2018:p:672-684
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    References listed on IDEAS

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