Effect of Strategic Agility Strategies on the Performance of Five-Star Hotels in Nairobi County, Kenya

Abstract

Due to the emergence of globalisation, technological advancements, shorter product cycle lifespans, and changing customer expectations, business owners today face significant challenges. As a result, many businesses have devised agility strategies to adapt to the ever-changing business environment and remain a going concern. Hence, the major objective for the study was to establish agility strategies on Performance of Five-Star Hotels in Nairobi County, Kenya guided by the following specific objectives: assess the effect of discontinuous innovation on performance, examine the effect of human capital on performance, establish the effect of management support on performance and analyse the effect of organisational policies on performance. The study was anchored on Dynamic Capability Theory as the major theory. Other theories to support the study include Porter's Five Forces Model and Market-Based Theory. The study was carried out in Nairobi County, Kenya. A descriptive survey research design was used with a census approach. A sample size of 146 from a population of 230 employees at ten Five-star hotel outlets in Nairobi County, calculated using the Slovin formula. The study carried out a pilot study at Narok County Mara Serena Safari Lodge. Data was collected using closed-ended questionnaires on a Likert Scale. Supervisors and research experts were used to ascertain the content validity of the study instruments. Cronbach's alpha coefficient was used to determine the reliability of research instruments. The study used the lower limit of the diagnostic rule agreed on Cronbach's alpha coefficient of 0.7. The study findings were presented with descriptive statistics in standard deviation, mean distributions, variances, tables, and frequency distribution percentages. Inferential statistics through simple and multiple regression analyses was used to show the relationship between variables. Pearson moment of correlation analysis was used to show the strength of the relationship between variables. The study findings revealed a statistically significance relationship between agility strategies and the performance of the ten Five-star hotel outlets in Nairobi County. The study findings revealed; a weak significant positive correlation between Discontinuous Innovation and performance of Five-star hotels, a strong significant positive correlation between Human Capital and performance of five-star hotels, a strong significant positive correlation between Management Support and performance of five-star hotels. Finally, the study findings revealed a significant positive correlation between Organisational Policies and the performance of five-star hotels. The study concluded that organisational policies agility strategy contributed the highest to hotel performance. Therefore, the study recommends that organisations leverage their structural flexibility to improve resource and knowledge mobility, ultimately leading to long-term performance gains.