STRATEGIC ORIENTATION, BUSINESS ENVIRONMENT DYNAMICS AND ORGANIZATIONAL PERFORMANCE OF STAR RATED HOTELS IN KENYA

Abstract

This study explored the impact of strategic orientation and business environment dynamics on the organizational performance of star-rated hotels in Kenya. The Kenyan hospitality sector was a key driver of economic growth, and understanding the factors influencing the performance of these hotels was essential for maintaining competitiveness. While strategic orientation and business environment dynamics were known to affect organizational success, their specific role in the hotel industry in Kenya had not been fully explored. Primary data were collected from hotel managers, focusing on strategic orientation variables, including entrepreneurial orientation, market orientation, customer orientation, and technological orientation. Business environment dynamics were measured through market dynamics, economic dynamics, and regulatory dynamics. The study examined how these strategic orientation and business environment variables influenced hotel performance. The findings revealed that both strategic orientation and business environment dynamics significantly impacted organizational performance, with entrepreneurial orientation and market dynamics showing the strongest effects. Hotels that strategically aligned with market and customer needs while adapting to regulatory changes were better positioned to enhance their performance. Based on these results, the study recommended that hotel managers emphasized flexible, proactive strategic orientations and stayed attuned to shifts in market and regulatory dynamics. Additionally, policymakers were advised to focus on creating a conducive business environment to support the sector's growth. This research offered valuable insights into how strategic and environmental factors contributed to the performance of star-rated hotels in Kenya, aiding both hotel managers and policymakers in fostering a competitive and sustainable hospitality industry.