ORGANIZATIONAL RESTRUCTURING AS A TURNAROUND STRATEGY ON PERFORMANCE OF FOUR-STAR RATED HOTELS IN COAST REGION, KENYA

Abstract

Globally, the hospitality industry is confronted by a multitude of challenges arising from the complexities of globalization, technological shifts, and the evolving preferences of consumers, leading to poor sales, productivity, and market share. This study explores the influence of organizational restructuring on four-star hotels in Kenya's coast region. Anchored in Contingency Theory, the study adopts a descriptive design targeting 319 managers. Using stratified random selection, 177 respondents form the sample. Data collected through drop-and-pick questionnaires undergoes correlation and Simple Linear regression analysis. Findings indicate a weak, positive linear relationship (R=0.149) between hotel performance and organizational restructuring. The model suggests only 2.2% of the dependent variable variation is directly influenced by the contingent variable (R2=0.022). This implies a minimal impact of the studied factor on hotel performance. Policy implications emphasize targeted support for organizational restructuring, recognizing its limited direct impact, and promoting complementary measures for sustained improvement in hotel performance.