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Performance of restaurants: Recognizing competitive intensity and differentiation strategies

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  • Kankam-Kwarteng, Collins
  • Osman, Barbara
  • Acheampong, Stephen

Abstract

Purpose: The purpose of this paper was to examine the relationships between differentiation strategies, competitive intensity and restaurant performance. It was also to estimate the effect of interaction terms of differentiation strategies and competitive intensity on restaurant performance. Methods: Data were obtained from 160 restaurant operators in the Ashanti region of Ghana through a structured questionnaire. The paths of the relationships were estimated and tested using regression analysis. Results: The findings suggest that differentiation strategies have a significant impact on restaurant performance and that competitive intensity partially influence the performance of restaurants. Competitive intensity was, however, found not to moderate the relationship between differentiation strategies and restaurant performance. Implications: The study findings will greatly help managers of the restaurant industry to appreciate the critical contribution of competitive intensity and differentiation strategies in estimating the performance of restaurants. The interactive terms of differentiation strategies and competitive intensity add to the divergent ways of measuring restaurant performance. This paper, therefore, contributes to the growing research in the restaurant industry.

Suggested Citation

  • Kankam-Kwarteng, Collins & Osman, Barbara & Acheampong, Stephen, 2020. "Performance of restaurants: Recognizing competitive intensity and differentiation strategies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(3), pages 25-34.
    • Handle: RePEc:zbw:espost:224767
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    References listed on IDEAS

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    Cited by:

    1. Kankam-Kwarteng, Collins & Sarpong, Appiah & Amofah, Ofosu & Acheampong, Stephen, 2021. "Marketing performance of service firms: Recognizing market sensing capability and customer interaction orientation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7, pages 8-48.
    2. Collins Kankam-Kwarteng & Appiah Sarpong & Ofosu Amofah & Stephen Acheampong, 2021. "Marketing performance of service firms: Recognizing market sensing capability and customer interaction orientation," Post-Print hal-03376959, HAL.

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    More about this item

    Keywords

    differentiation strategies; competitive intensity; restaurant performance;
    All these keywords.

    JEL classification:

    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L8 - Industrial Organization - - Industry Studies: Services
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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