This study investigates the mediating role of competitive strategies on the relationship between external social capital and firm performance. The data of the study were obtained through surveys responded by the managers of five-star hotels. 300 valid questionnaires were considered in the analysis. Firstly, validity and reliability analyses of the questionnaire were made. Hierarchical moderated regression analysis was used to test the research hypotheses. The findings indicate that external social capital has a positive effect on the firm performance. External social capital has a positive effect on competitive strategies. Furthermore, it was found that competitive strategies are partially mediated between external social capital and firm performance. In brief, hotels should not only learn but also implement these strategies to achieve competitive advantage.