STRATEGIC AGILITY AND ORGANIZATIONAL PERFORMANCE OF FIVE-STAR HOTELS IN NAIROBI CITY COUNTY, KENYA
Keywords:
Strategic Agility, Organizational Performance, Five-Star Hotels, Resource Agility, Operational AgilityAbstract
The hospitality industry, particularly hotels, face increasing uncertainty due to challenges such as terrorism, travel advisories, and canceled flights. To maintain a competitive edge and enhance performance, hotels must develop strong strategic agility. Even before COVID-19, the sector struggled with issues like low employee commitment, high turnover rates, and fluctuating performance levels. The pandemic further disrupted operations, exacerbated turnover, and led to significant financial losses, resulting in the closure of several prominent hotels in Kenya. This study examines the impact of strategic agility on the organizational performance of five-star hotels in Nairobi City County, Kenya, focusing on key dimensions: resource agility, operational agility. A descriptive survey design was employed to facilitate data collection. The target population consisted of 12 five-star hotels in Nairobi, as licensed by the Tourism Regulatory Authority (TRA). The study specifically engaged senior- and middle-level managers across departments such as administration, human resources, IT, marketing, and finance, selecting 120 respondents from these establishments through purposive sampling ensuring that participants had relevant expertise regarding the study’s themes. Primary data was gathered through structured questionnaires, utilizing a five-point Likert scale to capture responses. The study applied descriptive statistics including frequency distributions, percentages, tables, and pie charts to analyze and summarize findings, as well as inferential statistics, such as correlation and regression analysis, to explore relationships between the study variables. Visualization tools such as graphs and pie charts were used for clear comparisons. To ensure the validity and reliability of research instruments, a pilot study was conducted using 10% of the population sample. The descriptive results revealed a strong positive relationship between strategic agility and the performance of five-star hotels. Correlation analysis confirmed a significant positive link between the independent variables and organizational performance, while inferential analysis demonstrated a statistically significant connection between leadership styles and hotel performance. Based on R-squared values, the model accounted for 69.3% of variations in the dependent variable, and regression results indicated that an increase in any independent variable would lead to improved hotel performance.
Key Words: Strategic Agility, Organizational Performance, Five-Star Hotels, Resource Agility, Operational Agility
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