EFFECT OF STRATEGIC MANAGEMENT ON ORGANIZATIONAL PERFORMANCE OF BEACH HOTELS ALONG COASTLINE OF MOMBASA

DEREK KINYUA MUTENDERA, DR. FRIDAH SIMBA (Ph.D)

Abstract


The general objective of this study was to examine the effect of strategic management drivers on organizational performance with special focus on beach hotels along coastline of Mombasa. Specifically the study looked at how organizational learning, ICT, strategic planning and competitive positioning affect organizational performance. The study adopted a descriptive survey design. The target population comprised 88 senior employees working in all beach hotels along coastline of Mombasa. A sample of 72 respondents was obtained using formula proposed by Nassiuma. Data collection was done through the use of closed-ended questionnaires. The data was summarized and tabulated using descriptive measures. Factor analysis was used to identify the underlying factors. Descriptive statistics was used to summarize the results for each of the main variables. Data analysis was done with the help of Statistical Package for Social Science (SPSS) version 23. Descriptive statistics included frequencies distribution, and percentages and mean, while inferential statistical analysis used included correlations, and regression. The study established that behavioral changes is a driving factor on beach hotels performance and that cognitive changes as a result of organizational learning in beach hotels is taken to be a fundamental competitive advantage source. Further, majority of respondents agreed that beach hotels encourage employees to learn new skills continually and to carry out innovative activities. The study concluded that during strategy formulation the hotel involves all stakeholders in the industry and that the hotel conducts constant reviewing of overall plans. Further, it was concluded that the hotel effectively monitors strategic plans and makes use of planning departments. The study recommended that the beach hotels should automate all integral services so as to improve performance. Finally, the study recommended that the hotel management should carry out competitive positioning strategies to improve hotel performance.

Key Words: organizational learning, ICT, strategic planning, competitive positioning, organizational performance

CITATION: Mutendera, D. K., & Simbam, F. (2019). Effect of strategic management on organizational performance of beach hotels along coastline of Mombasa. The Strategic Journal of Business & Change Management, 6 (2), 717 –734.


Full Text:

PDF

References


Akan, O., Allen, S., Helms, M. & Spralls, A. (2013). Critical Tactics for Implementing Porter’s Generic Strategies. The Journal of Business Strategy, 27(1), 43-53

Allen, R. S., & Helms, M. M. (2012). Linking Strategic Practices and Organizational Performance to Porter’s generic Strategies. Business Process Management, 12(4), 433-454.

Al-Kandi, I., Asutay, M. & Dixon, R. (2013). Factors Influencing the Strategy Implementation Process and its Outcomes: Evidence from Saundi Arabian Banks. Journal of Global Strategic Management, 5-15.

Amakoye, N. J. (2010). Strategic Management Practices at Maseno Mission Hospital Kenya. Unpublished Master of Business Administration Research Project, School of Business, University of Nairobi, Nairobi.

Armstrong, M. (2012). Strategic human resource management: A guide to action. London: Kogan Page.

Ayele, B. (2012). Positioning strategies adopted by five star hotels in Nairobi. Unpublished MBA Thesis. Nairobi, University of Nairobi

Barkhi R., Daghfous, A, (2009). The Strategic Management of Information Technology in UAE hotels: An exploratory study of TQM, SCM, and CRM implementations. Technovation, ICD, 588-595.

Barney, J. B., & Clark, D. N. (2008). Resource-based theory: Creating and sustaining competitive advantage. Oxford: Oxford University Press.

Barney, J. B., & Hesterly, W. S. (2010). Strategic management and competitive advantage: Concepts and cases. Upper Saddle River, N.J: Prentice Hall.

Bipp, T. & Kleingeld, A. (2011). Goal-setting in practice: The effects of personality and perceptions of the goal setting process on job satisfaction and goal commitment, Personnel Review, 40(3), 306-323.

Bryson, J. M., F. Ackermann, and C. Eden. (2017). “Putting the Resource-Based View of Strategy and Distinctive Competencies to Work in Public Organizations.” Public Administration Review 67 (4): 702–717.

Cagna, J. D, (2007). The six core values of innovation. www.principledinnovation.com

Carton, R. B., & Hofer, C. W. (2016). Measuring organizational performance: Metrics for entrepreneurship and strategic management research. Cheltenham, UK: Edward Elgar.

Cheng, D. (2013). Analyze the Hotel Industry in Porter Five Competitive Forces, The Journal of Global Business Management, 9(3), 52-57.

David, F. R. (2009). Strategic Management Concepts and Cases, Tenth Edn. Prentice Hall, Pearson Education International.

De Nisi, A. S., Itih, M.A., and Jackson, S. E. (2008). The knowledge Based Approach to Sustainable Competitive Advantage. New York: Oxford University Press.

Denison, D. (2008), Organisational Culture and Innovation. Understand the Link. Research notes, 2(2) .www.denisonculture .com.

Dincer, O., Tatoglu, E., & Glaister, K. (2008). The Strategic Planning Process in the Management of Tourism. Tourism Management. 11(3), 206-213.

Dobni, B. (2010). Creating a Strategy Implementation Environment. Business Horizons, 46(2), 43-46.

Elbanna, S. (2010). Strategic Planning in the United Arab Emirates. International Journal of Commerce and Management, 20(1), 26-40.

Enz, C. A. (2012). Creating a competitive advantage by building resource capability. Cornell Hospitality Quarterly, 4(1), 73-78

Epstein, M. J. (2010). The Drivers and Measures of Success in High Performance Organizations In: Epstein, M.J. and J.F. Manzon, (Eds.), Performance Measurement and Management Control: Superior Organizational Performance. Studies in Managerial and Financial Accounting, 14, Elservier, Amsterdam.

Fwaya, O., Odhuno, E., Kambona, O., & Odhuon, O. (2012). Relationships between drivers and results of performance in the Kenyan Hotel Industry. Journal of Hospitality Management and Tourism, 3(3), 46-54.

Gill, P., Stewart, K., Treasure, E., & Chadwick, B. (2008). Methods of data collection in qualitative research: interviews and focus groups. British dental journal, 204(6), 291-295.

Government of Kenya (2012). Statistical Abstract. Nairobi. Government Printer.

Jehad, A. & Adel, K. (2013). Strategic Planning and Organizational Effectiveness in Jordanian Hotels. International Journal of Business and Management. 8(1), 11-25.

Johnson, G. & Scholes, K. (2003). Exploring corporate strategy (6th Edition). Prentice-Hall, New Delhi

Kamau, F. (2008). Strategic Planning Practices Adopted by Tour and Travel firms in Kenya. Unpublished MBA Thesis. University of Nairobi.

Kingi, W. (2013). Effect of Human Resource Development on the Performance of Tourist Class Hotels in Malindi District, Kenya. Unpublished Phd. Thesis. Jomo Kenyatta Univeresity of Agriculture and Technology.

Kotler, P., (2011). Marketing Management: Analysis, Planning and Control, Prentice Hall, Engle Wood Cliffs, New Jersey.

Kothari, C. R. (2008). Research methodology: Methods and techniques. New Age International.

Kuria, K., Wanderi, M., & Ondigi, A. (2011). Factors Influencing labour Turnover in three and Five Star- related hotels in Nairobi, Kenya. International Journal of Humanities and Social Sciences, 1(20), 195-201.

Lau, K., Lee, K., Ho, Y., (2009). Text Mining for hotel industry. Cornell Hotel and Restaurant Administration Quarterly 46(3), 344-362.

Law, R. & Jogaratnam, G. (2008). A study of hotel information technology applications. International Journal of Contemporary Hospitality Management. 17(2), 170-180.

Lekasi, G. T. (2010). Strategic Management Processes at Kenya Revenue Authority (KRA). Unpublished Master of Business Administration Research Project, School of Business, University of Nairobi, Nairobi.

Ligare, H. (2010). Strategic Management Practices by state corporations in Kenya. Unpublished MBA project, School of Business, University of Nairobi.

Lo, Y. (2012). Back to Hotel Strategic Management 101: An examination of hotels, implementation of Porter’s generic strategy in China. The Journal of International Management Studies 7(1), 56-69.

Mibei, W. K. (2012). Competitive Strategies Adopted by Travel agencies in Kenya, Unpublished MBA Thesis, University of Nairobi.

Mshenga P. & Owuor G. (2009). Opportunities for Micro and Small Scale Businesses in the Tourism Sector: The case of the Kenya Coast. KCA Journal of Business Management 2(2), 52-58.

Mucheru, J. (2008). Application of the balanced scorecard in performance management among commercial banks in Kenya, Unpublished MBA Project, University of Nairobi.

Mugenda, M. O. & Mugenda A. (2012). Research Methods: Qualitative and Quantitative Approaches, African Centre for Technology Studies, Nairobi, Kenya.

Muthoka, M. N. (2014). Effects of strategic management drivers on organizational performance in the tourism sector in Kenya. Nairobi. UoN Repository.

Mwangi, J. N. (2017). Strategic Mangement Drivers and Performance of Five Star Hotels in Nairobi County. Nairobi. UON Repository.

Namusonge, G. S; Kabare, K., Mutua, S. (2012). Role of Human Resource Management Practices on performance of financial cooperatives based in Nairobi County, Kenya International Journal of Humanities and Social Science. 2(22), 289-297.

Njihia, M., Obara, M., & Mauti, M., (2010). The Critical Success Factors and Challenges in E- Procurement Adoption among Large Scale Manufacturing firms in Nairobi, Kenya. European Scientific Journal, 9(13), 375-401.

Njuguna, J. (2009). Strategic Positioning for Sustainable Competitive Advantage: An Organisational Learning Approach. KCA Journal of Business Management.

Nzuve, M. & Nyaega G. (2011). Application of the Balanced Scorecard in performance measurement at Essar Telecom Kenya Limited. Unpublished MBA Project, University of Nairobi.

Odhiambo, O. (2009). Implementation of Performance Contracting in Kenya. International Public Management Review, 10(2), 60-84.

Odhuno L., Kambona O., Othuno E. & Wadongo B. (2010). Key performance indicators in the Kenyan hospitality industry. A Managerial perspective. Benchmarking. An International Journal, 17 (6), 858-875.

Ongore, V., & Kobonyo P. (2011). Effects of selected corporate Governance characteristics on Firm Performance: Empirical Evidence from Kenya. International Journal of Economics and Financial Issues, 1(3), 99-122.

Oketch, R., Wadawi K., Brester N., & Needetea A. (2010). The role of hotels in Consumption of Cultural Tourism in Kenya. Journal of Tourism (8), 34-39.

Pearce, J. A. & Robinson, R. B. (2016). Strategic Management: Formulation. Implementation and Control. Burr Ridge: Irwin.

Philips, J. J. (2008). Investing in Your Company's Human Capital: Strategies to Avoid Spending Too Little -- or Too Much. New York: AMACOM.

Piccoli, G., O’connor, P., Capaccioli, C. & Alvarez, R. (2008). CRM: A driver for change in the structure of the U.S. Lodging Industry, Cornell Hotel and Restaurant. Administration Quarterly, 42(6), 10-21.

Porter, M. E. (2008). What is Strategy? Harvard Business Review, 74 (6), 61.

Raisinghani, M.S., Tan, E., Untama, J.A., Weiershaus, H., (2005). CRM Systems in German Hospitals. Illustrations of Issues & Trends. Journal of Cases on Information Technology. 7(4), 1-26

Richard, P., Devinney, T., Yip, G., & Johnson, G. (2009). Measuring Organizational Performance: Towards Methodological best practice. Journal of Management. 35(3), 718-804.

Salaman, G., Story, J. & Billsberry, J. (Eds.). (2009). Strategic Human Resource Management (2nd edition ed.). London:Sage Publications.

Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for Business Students (5th Edn.). New Jersey: Prentice Hall.

Sekaran, U., & Bougie, R. (2010), Research Methods for Business: A Skill Building Approach. (5th edition). New Jersey: John Wiley and Sons.

Sengupta, K., Haser, D.R., Cook, L.S. (2006). Manufacturing and Service Supply Chain performance: a comparative Analysis. Journal of Supply chain Management 42(4), 4-15.

Sharma, A., Upneja, A., (2008). Factors influencing financial performance of small hotels in Tanzania. International Journal of Contemporary Hospitality Management, 17(6), 504-515.

Shimpton, H., West, M.A., Dawson, J., Birdi, K.B., Patterson, M. (2006). HRM as a predictor of Innovation. Human resource Management Journal, 16(1), 3-27.

Thompson, A. & Strickland, A. J. (1993). Strategic Management; Concepts and Cases. Irwin, New York.

Uzel, J. (2012). The effect of strategic value-based management on the performance of organizations in Coast Province, Kenya. International Journal of Business & social Science, 3(16), 262-270.

Waiganjo, E., Mukulu, E., & Khariri, J. (2012). Relationship between Strategic Human Resource Management & Firm Performance of Kenya’s Corporate Organizations. International Journal of Humanities & Social Science, 2(10), 62-70.

Wadongo, B., Odhuno, E. & Kambona O. (2010). Managerial roles and choice of performance measures in the Kenyan Five- Star hotels using a cross-sectional correlation design. Managing Leisure. 15(11), 17-31.

Wang, C. L. & Ahmed, P.K. (2007). Dynamic Capabilities: A Review and Research agenda. The International Journal of Management Reviews. 9(1), 31-51.

Wheelen & Hunger (2008), Strategic Management & Business Policy, Massachusetts: Addison-Wesley Publishing Company.

Winter, S. (2008). The satisfying principle in capability Learning. Strategic Management Journal, 2(1), 981-996.

Wong, H., Page D., Abello, R. & Pang P. (2009). Explorations of Innovation and Business Performance using linked firm-level data. Research paper Cat.no.1351.0.55.020. Australian Bureau of Statistics: Canberra.

Yabs, J. (2010). Strategic Management Practices. Nairobi: Lelax Global.

Zaheer A., Sabir M., & Suhail A. (2011). Link between product Innovation and Non-technological Organization Performance. Asian Journal of Business Management 3(4), 287-293.




DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1138

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

PAST ISSUES:
20242023202220212020201920182017201620152014
Vol 11, No 2 [2024]Vol 10, No 4 [2023]Vol 9, No 4 [2022]Vol 8, No 4 [2021]Vol 7, No 4 [2020]Vol 6, No 4 [2019]Vol 5, No 4 [2018]Vol 4, No 4 [2017]Vol 3, No 4 [2016]Vol 2, No 2 [2015]Vol 1, No 2 [2014]
 Vol 11, No 1 [2024] Vol 10, No 3 [2023] Vol 9, No 3 [2022]Vol 8, No 3 [2021]Vol 7, No 3 [2020]Vol 6, No 3 [2019]Vol 5, No 3 [2019]Vol 4, No 3 [2017]Vol 3, No 3 [2016]Vol 2, No 1 [2015]Vol 1, No 1 [2014]
  Vol 10, No 2 [2023] Vol 9, No 2 [2022]Vol 8, No 2 [2021]Vol 7, No 2 [2020]Vol 6, No 2 [2019]Vol 5, No 2 [2018]Vol 4, No 2 [2017]Vol 3, No 2 [2016]  
  Vol 10, No 1 [2023] Vol 9, No 1 [2022]  Vol 8, No 1 [2021]Vol 7, No 1 [2020]Vol 6, No 1 [2019]Vol 5, No 1 [2018]Vol 4, No 1 [2017]Vol 3, No 1 [2016]   


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.