ABSTRACT

While pursuing business objectives, organizations face the challenge of balancing competitive and institutional demands. However, for some firms, conformance to institutional pressures to adopt and fully implement a practice does not imply that the most effective and efficient choice is made. By drawing on theoretical insight from institutional theory, organizational agency, competitive strategy and issue interpretation I argue that a firm’s competitive strategy influences the extent of implementation a practice receives. To conduct this study I examined the implementation patterns of a quality practice introduced to the tourist accommodation industry in the Republic of Trinidad & Tobago. The competitive factors that lead managers to interpret the practice as an opportunity for gain versus a threat for loss were examined to understand better the motivations towards an adopted practice in a competitive environment. Results suggest that the competitive environment does indeed influence how an adopted practice is interpreted. Further results demonstrate a strong association between issue interpretation and the extent of practice implementation, which is arguably decided by top management beliefs regarding the value of the practice. Limitations of the study and potential avenues for future research are discussed, followed by practical implications rendered applicable to business and society.