PERCIEVED EFFECT OF STRATEGIC ORIENTATION ON PERFOMANCE OF FIVE STAR RATED HOTELS IN NAIROBI COUNTY

Abstract

Strategic orientations play a vital role in the performance of firms which incorporate them. The concept of strategic orientation is divided into four sections; learning orientation, market orientation, customer orientation and technology orientation The main objective of the study was to determine the perceived effect of strategic orientations on performance of five-star rated hotels in Nairobi. Specifically, to identify the relationship between; learning orientation, market orientation, customer orientation, technology orientation and performance of five star rated hotels in Nairobi respectively. Hypotheses were constructed in alignment with the above objectives. The study was guided by the Contingency Theory and the Resource-Based Theory. The study employed explanatory design as it sought to seek causal relationships between variables. The study population was a total of 377 managers and supervisors from 20 classified five-star hotels in Nairobi County. The study used simple random sampling to get 141 informants who participated in the study. Structured questionnaires were used to collect data. Data was analyzed using Statistical Package for Social Sciences version 25.0. Reliability was tested using Cronbach’s Alpha and the coefficients were found to be within the recommended threshold. The reliability results indicated that the Cronbach’s alpha values were more than 0.8 hence very good reliability index. Data was analyzed using descriptive statistics standard deviation, percentages and inferential statistics (Pearson Correlation and Multiple regressions). The findings showed that market orientation (β2 = 0.396, p-value = < 0.05), technology orientation (β4= 0.257, p-value = < 0.05), customer orientation (β3 = 0.210, p-value = <0.05) and learning orientation (β1= 0.180, p-value = <0.05), all had significant and positive perceived effect on hotel performance. The R2 results indicated that strategic orientations contribute 59.9% of performance of five star rated hotels in Nairobi County. The study concluded that there is a strong positive relationship between market, learning, customer and technology orientations and hotel performance. The study further recommends that the four elements of strategic orientation should be employed by five star rated hotels in a bid to increase performance of the said hotels.