Determinants of Strategic Posture of Hotels in Kenya: A Resource Based View Perspective

Abstract

This study sought to examine the influence of internal resources on the strategic posture that business hotels took. Internal resources were determined as physical facilities, managerial competences, business processes and technology. The study subjected the internal resources to the strategic posture dimensions of risk, proactivity, innovation and competitive aggressiveness to examine proactive or reactive posture. The moderating variable was organizational culture, which is also an internal resource. The research objectives were presented as (i) to determine the influence of the organizational facilities on strategic posture; (ii) to examine the relationship between managerial competences and strategic posture; (iii) to investigate the extent to which business processes impact on strategic posture; (iv) to establish the effect of technological use on strategic posture; v) to explore the influence of organizational culture on strategic posture. The positivism philosophy guided the study using the descriptive research design. The emphasis was on testing the theory adopted through development of hypothesis. The target population was the hotel industry in Kenya, specifically corporate hotels. Data was collected from 246 hotels across the country. Stratified random sampling was used. The population was divided into six regions. Samples were picked from each of the regions ensuring that the proportions of the population were maintained. Data was collected using questionnaires and focus group discussions. 191 questionnaires were received representing a 77% response rate. Descriptive statistics was used to provide frequencies, percentages, mean scores and standard deviations for the general information data while inferential statistics, using the binary logistics model, was used to determine the hypothesis generated for the study. The confidence level used in the study was 95%. The findings indicate that indeed internal resources determine strategic posture of hotels in Kenya, although at various degrees. All the internal resources were found to predict the strategic posture of hotels, although at varying levels. The overall model indicates that physical facilities predicted the strategic posture at the highest level of p=0.00. Managerial competences followed at p=0.003, Business processes at p=0.046 and Technology at p=0.047. That is to say that, physical facilities are the first attraction of customers to hotels as they provide a perception and impression of the standard of the hotel before the guests interact with the actual service. Managerial competences affect the decision and management of resources in the hotel influencing the service environment as vi a whole. Capable managers ensure that the hotel is well directed administratively, which could include for example, meeting strategic objectives, like the desired market position in the industry. Business processes represent the service aspect of the hotels. Quick, efficient and consistency of service accelerates a favorable market position. A hotel‟s deliberate effort to ensure that their processes are up to the guests‟ expectations, and that they enable provision of quality service, would propel a hotel to a desired strategic posture. Technology similarly, as an internal resource, was found to be a significant predictor of strategic posture notably though at the least significant level. Technology enables operational efficiency and also enhances guest experience in the hotels. These two aspects act as enablers to favorably positioning hotels in the market. Organizational culture as an internal resource was also found to predict strategic posture. As a moderator, it also moderated all the internal resources at various intensities. Business process was the most moderated by culture, followed by physical facilities, then technology and lastly managerial competences. It was generally found that hotels have strong hospitality cultures. Key recommendations from the study include (i) hotels need to take risks, be proactive, create innovations and be aggressive towards their competition, if they desire to be strategically position themselves in the market, (ii) the physical outlook of a hotel is essential as it is a major consideration to attracting the business guest. Facilities give a perception of standards. Additionally, facilities support the services provision of hotels; (iii) managers are required to be competent and to continuously develop their capabilities in order to cope with the ever-changing demands of the guests and professionally manage the hotels through effectively planning and managing resources to meet business objectives; (iv) it is necessary to effectively manage business processes to provide guests with an enriched guest experience through services provided, thus increasing customer retention and repeat business; (v) adoption of technology should be encouraged to improve proficiency of operations. From the guest‟s perspective, technology enhances guest interactions through applications such as customer relations‟ management (CRM) and guest feedback mechanisms to increasingly understand customers‟ needs and meet their expectations. These efforts will enable business hotels attain their desired strategic position in the industry. vii This study recommends further research on other categories of hotels including vacation hotels and lodges. Other internal tangible and intangible resources could also be studied to investigate their influence on strategic posture. With reference to the firm performance model, other variables, specifically the strategic variables and the external variables, could be studied to determine their influence on strategic posture.