The Effect of Strategic Value - Based Management on the Performance of Organizations in Coas t Province, Kenya

Abstract

This paper established the effect of Strategic Value-based Management on the performance of organizations in Kenya and specifically the performance of hotels in Kenyan Coast. Pearson’s correlation coefficient and Multiple Regression was used to determine whether hotels in Mombasa use Value-based management and whether Value-based management influences their performance. The regression results indicated that value-based management had a positive effect on the performance of hotels. However, although there was a positive relationship between the use of VBM and performance, it was concluded that not many hotels had adopted Value-based management strategies and this justifies another study on other determinants of the performance of these hotels apart from value -based management. The study was based on a survey of 70 managers of classified hotels in Mombasa and was relating the performance of these hotels to the probability of using value-based management vis a vis not using value-based management through Regression Analysis.