STRATEGIC INNOVATION STRATEGIES AND PERFORMANCE OF FIVE STAR HOTELS IN MOMBASA, KENYA
Abstract
The purpose of the study is to investigate the strategic innovation strategies and organizational performance of selected five-star hotels in Mombasa, Kenya. The study focused on selected five star hotels in Mombasa, Kenya. The specific objectives of the study were to investigate the effect of business model innovation, process innovation, service innovation and organizational innovation on organizational performance of selected five-star hotel in Mombasa. The study findings were of significance to the hotel management, policy makers and scholars and other researchers. The diffusion of innovation theory, Schumpeter theory of innovation, organizational innovation theory and disruptive innovation theory formed the theoretical foundation of the study. The study used cross-sectional research design and descriptive research design to establish the link between the study variables. The management and supervisory staff of the selected five-star beach hotels in Mombasa formed the population of interest, which were 97 respondents. The study utilized stratified sampling technique to group the population into similar strata and use random sampling technique to select a sample size of 78 respondents using Slovin mathematical formula. Primary data was collected by use of structured questionnaire. Pilot study was carried out on three respondents to determine the validity and reliability of data collection instruments. Collected data was checked for correctness and analysed quantitatively by use of Statistical Package for Social Science (SPSS) version 25 tool. Descriptive analysis was determined by use of mean and standard deviation while regression analysis was determined by model summary, ANOVA and regression coefficients. Correlation analysis was computed to determine the nature of relationship between the variables. The study findings revealed that hotels update their business models periodically to adapt to changing dynamics and this action makes the business model adopted by the hotel to be responsive. The hotel internal processes are integrated by the business model which is an end-to-end system. The study concluded that the hotel identifies and eliminates non-value adding activities in the service process to enhance efficiency. It was concluded that the hotel has smart door lock systems which can be accessed remotely and the payment process of the hotels is automated thus enabling online room booking capability. The study concluded that the hotel has real-time query application which enables guests to query anything concerning hotel service. The study recommended that the hotel management should design a database which should be dynamic to enable knowledge management. This knowledge should be applied to improve the hotel service practices.
Key Words: Business Model Innovation, Process Innovation, Service Innovation, Organizational Innovation
CITATION: Kula, B., & Kavale, S. (2022). Strategic innovation strategies and performance of five star hotels in Mombasa, Kenya. The Strategic Journal of Business & Change Management, 9 (2), 628 – 644.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i2.2287
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