Differentiation Strategies’ Effect on Competitive Advantage with Tri Hita Karana as a Moderating: Study of Ubud Homestay Entities in Bali

ABSTRACT: This study aims to explain and determine the effect of differentiation strategies on competitiveadvantage with the noble value of Tri Hita Karana on homestay entities. This research was conducted on 58homestay entities located in Ubud, Bali. The sample was determined through a non-probability samplingmethod, a purposive sampling technique with 157 respondent repeater guests. The data analysis technique usedis Moderated Regression Analysis (MRA). The results of this study indicate that product differentiationstrategies affect competitive advantage, service differentiation strategies affect competitive advantage, andimage differentiation strategies affect competitive advantage. This study also found that Tri Hita Karana is aquasi-moderation variable that strengthens the effect of product differentiation strategies on competitiveadvantage, strengthens service differentiation strategies on competitive advantage, and strengthens imagedifferentiation strategies on competitive advantage. Implications for stakeholders to increase competitiveness inhomestay entities with differentiation strategies through preservation of the noble value of Tri Hita Karana.

Keywords:Ubud, Tri Hita Karana, competitive advantage, differentiation strategy