STRATEGIC CAPABILITIES AND FIRM PERFORMANCE OF STAR RATED HOTELS IN MOMBASA COUNTY, KENYA
Abstract
The purpose of the study was to determine the effect of strategic capabilities on firm performance. The study focuses on star rated hotels in Mombasa County. The specific objectives of the study were to establish the effect of network capability, innovation capability, leadership capability and information acquisition capability on organizational performance of hotels. The study was grounded on Resource Based View, Dynamic capabilities theory, theory of performance and Organizational innovation theory. This study used cross-sectional descriptive survey research design. The population of study was all the star rated hotels in Mombasa County. The current study selected 2 Star to 4 Star rated hotels in Mombasa County which are 43 in total. The study adopted stratified random sampling technique. A sample of 120 was chosen by Slovin’s formula. Primary data was collected using self-administered questionnaires which was distributed to the respondents and picked later. Pilot test was conducted to measure the validity and reliability of research instruments. Data analysis conducted on the data was descriptive statistics and inferential statistics with the use of Statistical Package for Social Science. The analyzed data was presented by the use of tables and figures. Descriptive statistics results showed that strategic capabilities has significant effect on firm performance. The inferential statistics also revealed that network capabilities, information acquisition capabilities, innovation and leadership capabilities had a positive significant effect on firm performance of star rated hotels. The findings of the correlation analysis results showed that network capabilities, information acquisition capabilities, innovation and leadership capabilities is moderately and positively correlated with firm performance of star rated hotels. The regression analysis finding also showed that network capabilities, information acquisition capabilities, innovation and leadership capabilities had a positive and significant effect on firm performance. The study concludes that the hotels have sought to build strong stakeholder collaborations and that when it comes to problem solving, the star rated hotels promote joint problem solving. Based on the summary of the conclusions, the study recommends that network capabilities has potential to improve firm performance. The star rated hotels should take priority in building relationship with customers and suppliers as well as collaborating with stakeholders.
Key Words: Network capability, Information acquisition, Innovation, Leadership
CITATION: Esha, S. A., & Kavale, S. (2024). Strategic capabilities and firm performance of star rated hotels in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 466 – 481. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3099
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3099
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