Effect Of Strategic Orientation On The Organizational Performance Of Three- Star Rated Hotels In Nairobi County, Kenya

Abstract

The tourism and hospitality sectors are recognized as among the most vital and swiftly expanding economic segments on a global scale. Within the current dynamic landscape, hotels encounter numerous challenges in their operations. These challenges encompass technological advancements, the frequent evolution of customer preferences, and crises such as pandemics, all of which pose substantial threats to the industry's sustenance. The ramifications of these challenges include diminished revenues, decreased customer demand, job cuts, escalated operational expenses, and even closures of businesses within the hotel industry. A pivotal capability that holds significant promise in enhancing performance for hotels is strategic orientation. This capability not only guides and influences a firm's activities but also shapes the behaviors necessary to ensure the firm's viability and survival. The study specifically examined into the influence of strategic orientations such as entrepreneurial, market, and technological aspects on the performance of these three star-rated hotels within Nairobi County, Kenya. The theoretical framework for this study is grounded in dynamic capability, and contingency theories. Employing a descriptive research design, the study intends to involve a target population of 320 top, mid, and low-level managers drawn from 40 three-star rated hotels in Nairobi County, Kenya. The research employed a stratified random sampling approach, ensuring comprehensive representation across all management tiers among the respondents. The determination of the sample size, comprising 178 respondents, adopted the Yamane formula. To gather primary data for the study, a structured questionnaire was utilized. The research adopted both descriptive and inferential. Descriptive statistics, such as mean, frequencies, and standard deviations, was employed to analyze quantitative data. The findings was presented through tables and figures. Furthermore, inferential statistics was employed, specifically regression analysis, to ascertain the effect of entrepreneurial, market, and technology orientations on performance outcomes. To conduct these analyses, the research used the SPSS (Statistical Package for the Social Sciences) software. The findings indicated entrepreneurial orientation (β= 0.347, p=000), market orientation (β= .290, p=000), and technology orientation (β= 0.476, p=000). The results indicate that all three strategic orientation variables; entrepreneurial orientation, market orientation, and technology orientation have positive and statistically significant relationships with organizational performance. The study concluded that fostering entrepreneurial qualities, prioritizing market orientation, and embracing technology-oriented practices are all significant factors positively impacting the organizational performance of three-star-rated hotels. The recommendations for three-star-rated hotels in Nairobi County based on the research findings include prioritizing the cultivation of an entrepreneurial mindset and culture among staff, emphasizing market orientation through customer-centric practices and adaptive strategies, and placing a strong focus on technology adoption and integration into their operations to enhance overall performance and competitiveness.