Effect of Strategic Management Drivers on the performance of the hotel industry in Kenyan Coast

Abstract

The purpose of this research was to examine the effect of strategic management drivers on the performance of hotels in Kenyan coast. The general objective of the study was to establish the influence of strategic management drivers on the performance of hotels in Kenyan Coast. The strategic management drivers selected for the study and which formed the specific objectives of the study were to determine the effect of customer relationship management, strategic planning, strategic competitive positioning, Information Communication Technology and organizational learning on the performance of the hotel industry in Kenya’s Coast. The study adopted a quantitative research with the specific research design being a cross sectional survey design. The population of the study was the classified hotels in Kenya’s Coast. The sampling frame was 180 hotels arising from the Hotels Classification List out of which a sample size of 123 hotels were extensively surveyed to ascertain the influence of strategic management drivers on their performance. The sampling technique used was stratified random sampling. Primary data was collected by use of questionnaires which were administered through drop and pick method. Data screening was done to identify any missing data and it was further tested for reliability and normality. Reliability was tested using Cronbach’s Alpha. Normality was tested using Kurtosis, Skewness and Kolmogorrov Smirnov (K-S) test. Outliers in the data were identified by use of a Stem and Leaf graph. Multicolinearity was also tested and all study variables were found to be free from any multicolinearity. Data was analyzed using SPSS version 24. Descriptive statistics e.g standard deviations and T-tests were used for preliminary tests. Inferential statistics such as Pearson’s correlation, ANOVA and multiple regression analysis were used for further analysis. The key findings were that strategic management drivers individually had a positive influence on the performance of hotels in Kenyan coast. The overall results indicated that there was a significant linear relationship between CRM strategy and hotel performance and a moderately significant linear relationship between strategic planning (SP) and strategic competitive positioning (SCP) and hotel performance. There was also a significant positive relationship between Information communication technology (ICT) and hotel performance. There was a significant positive relationship between organizational learning (OL) and hotel performance. After each driver was tested individually it had showed a positive significance. Similary, when all the strategic management drivers of hotel performance were tested altogether it was established that they had moderately low significance. Managers who were consulted about these results attributed the low explanatory power of variables to terrorism threats, attacks and travel advisories which had been continuously given by the western countries to Kenya. The study assists policy makers in coming up with policies on improvement of hotel performance. The study adds to the available literature on hotel performance. The study came up with a model that could be further tested to assess its overall influence on hotel performance. The study recommends the adoption of strategic management drivers in hotels in order to improve performance.