The Mediating Role of Sustainable Competitive Advantage: A Comparative Study of Disaggregated vs. Holistic Models in Green Hotels

This study investigates the role of Modern Management Accounting (MMA)—which integrates Strategic Management Accounting (SMA) and Strategic Customer Knowledge (SCK)—in driving Sustainable Competitive Advantage (SCA) and Business Sustainability (BS) in Thai green hotels. Business Sustainability is conceptualized as the achievement of balanced outcomes across economic performance, social responsibility, and environmental stewardship. It addresses a theoretical debate by testing two competing SCA models: a disaggregated model (which separates SCA into Customer Experience Advantage (CEA) and Operational Efficiency Advantage (OEA)) and a holistic model (which treats SCA as a unified construct). Data from 115 certified green hotels were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results revealed a critical distinction between the models. In the disaggregated model, SMA and SCK contributed to both CEA and OEA, but only OEA directly enhanced BS and served as a partial mediator in the relationships from both SMA and SCK to BS, whereas CEA showed no significant mediating effects. Conversely, the holistic model demonstrated that overall SCA served as a partial mediator in the relationships from both SMA and SCK to BS, while also exerting a strong direct effect on BS. The study concludes that achieving business sustainability requires a holistic SCA that integrates both operational efficiency and customer experience, offering a comprehensive framework for strategic management in the hotel industry. These findings underscore the strategic imperative for hotel managers to cultivate an integrated competitive advantage, where superior customer experiences and operational excellence are synergistically managed, to ensure long-term business sustainability.