Title: Does financial leakage mediate sustainability and competitive advantages of star classified hotels in Ethiopia?

Authors: Endalew Tegegne; Apar Singh

Addresses: Bahir Dar University, Bahir Dar, Ethiopia ' Punjabi University, Patiala, India

Abstract: This research has examined the mediating effect of the reduction of financial leakage on sustainability practices and competitive advantage. The type of the research was mixed type, the design was explanatory and cross-sectional survey was also employed. A self-administered survey was conducted from star classified hotels in Ethiopia. Unidimensionality and validity of the study measurement model was done using exploratory factor analysis using SPSS 23 and confirmatory factor analysis using AMOS 21. The mediating effect of financial leakage and the effect of sustainability practice on competitive advantage were tested using SEM analysis. In this study, sustainability practice significantly influences the competitive advantage of star classified hotels in Ethiopia. Furthermore, financial leakage was partially mediated the relationship of sustainability and competitive advantage of star classified hotels in Ethiopia. Finally, this study revealed financial leakage problem is well-recognised for the emergence of competitive advantage through sustainability practices of tourism businesses.

Keywords: resource-based view; RBV; sustainability practices; financial leakage; quality tourism experience; competitive advantage; Ethiopia.

DOI: 10.1504/IJLTM.2022.10046377

International Journal of Leisure and Tourism Marketing, 2022 Vol.7 No.3, pp.180 - 198

Published online: 25 Apr 2022 *

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