European Journal of Business and Innovation Research (EJBIR)

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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 examine the role of strategic management drivers on the performance of hotels in Kenyan Coast. The performance drivers selected for this study and which formed the specific objectives of the study were: to find out the effect of customer relationship management(CRM)strategy, strategic planning (SP), competitive positioning(CP), information communication technology(ICT) and organizational learning(OL) on the performance of the hotel industry in Kenyan Coast. The study adopted a mixed research approach which was both quantitative and qualitative using descriptive survey. The population of the study was 180 managers of classified hotels in Kenya’s Coast. The sampling technique that was used was stratified random sampling. Data collection methods involved secondary and primary data. The instrument of study was a self administered questionnaire which was used to collect data after it had been piloted for validity and reliability. The questionnaires were administered through drop and pick method. An observation checklist was also used to account for qualitative data Performance in the hotel industry was measured using both financial and non-financial measures. In this study 123 hotels were extensively surveyed to ascertain their level of use of strategic management drivers of hotels performance. The correlations between the five strategic drivers were evaluated by using various statics tools and instruments. The findings revealed that strategic management drivers had a positive influence on hotel performance. The overall results indicated that there was a highly significant linear relationship between CRM strategy and hotel performance and a moderately significant linear relationship between strategic planning (SP), strategic competitive positioning (SCP) and hotel performance and a moderately low significant relationship between Information communication technology (ICT), Organizational learning (OL) and hotel performance. The study recognized strategic management drivers as some of the tools that propel performance in the hotel industry. It recommended to hotels that they ought to embrace the adoption of strategic management drivers. Hotels were also challenged to align their goals and objectives to the stated strategic management drivers of performance in order to gain sustainable competitive advantage (SCA). This research will go a long way in assisting hotels in identifying and adopting strategic management drivers in order to enhance their performance. Enhanced performance through the adoption of strategic management drivers will help hotels to create jobs, improve the economy as well as making Kenyan hotels more competitive in the global hotel industry.



Keywords: Hotel performance, Strategic Management Drivers, Tourist Hotels

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