How does perceived environmental uncertainty determine competitive strategies in the hotel business? The role of competitive intelligence

Purpose This study aims to determine the moderating role of competitive intelligence in the relationship between perceived environmental uncertainty and the choice of competitive strategies. Addressing a gap in the hospitality literature, this study investigates how competitive intelligence enables hotels to adapt their strategies in turbulent environments, a critical challenge in under-researched contexts such as boutique hotels. Design/methodology/approach This study collected survey data from 149 top-level managers of 4/5-star and boutique/cave hotels in Nevsehir, Türkiye. The hypothesized relationships, including the moderating effects of competitive intelligence, were tested using partial least squares structural equation modeling (PLS-SEM). Findings The findings reveal distinct relationships: perceived heterogeneity negatively impacts differentiation but positively influences focus strategies, whereas hostility negatively affects cost leadership. Crucially, this study demonstrates the significant moderating role of competitive intelligence. Specifically, competitive intelligence components such as information gathering were found to alter the impact of environmental hostility and heterogeneity on firms’ strategic choices, sometimes buffering negative effects and at other times amplifying them. This highlights that the effectiveness of a strategy under uncertainty is contingent upon a firm's intelligence capabilities. Research limitations/implications The findings suggest that hotel managers should develop robust competitive intelligence systems as a strategic enabler. These systems inform strategic decision-making by revealing the limited viability of cost leadership strategies in hostile environments and encouraging the adoption of focus strategies in heterogeneous markets. This research theoretically establishes competitive intelligence as a critical moderating variable in the environment-strategy relationship. The research shows that a firm's response to turbulence depends on its information processing capabilities. Practical implications Hotel managers should prioritize the development of robust competitive intelligence systems to navigate environmental uncertainty. Specifically, these systems can guide strategic choice by highlighting the risks of cost leadership strategies in hostile markets while revealing opportunities for focus strategies in heterogeneous ones. For boutique and cave hotels, this involves implementing scalable digital tools for monitoring competitor pricing and customer feedback to enable agile strategic adjustments. Originality/value This study fills a gap in the literature by examining the moderating role of competitive intelligence in the relationship between perceived environmental uncertainty and competitive strategies. Unlike previous research, this study specifically focuses on accommodation businesses, a context that has been largely overlooked. This study offers a novel perspective by integrating competitive intelligence into this relationship, providing both theoretical contributions and practical implications for the hospitality industry.