Effect Of Entrepreneurial Design On Performance Of Star Rated Hotels In Kisumu City, Kenya

Abstract

In the ever-changing business landscape, star-rated hotels have embraced new strategies to stay competitive. Consequently, these enterprises have adopted a variety of entrepreneurial designs to excel. Nevertheless, the hotel industry has witnessed a decline in revenue over the last decade, prompting stakeholders to question the factors that impact revenue performance in this sector. While companies have embraced entrepreneurial design to enhance their performance there is an absence of consensus in empirical research regarding the impact of entrepreneurial design on firm performance. Moreover, there is a lack of comprehensive research connecting entrepreneurial design with the performance of businesses, and existing studies are spread across diverse industries, making it challenging to draw broad conclusions. Given these conditions, the goal of this research is to determine how entrepreneurial design affects the performance of high-end hotels in Kisumu City that compete in the market. This study specifically attempts to determine the impact of entrepreneurial novelty layout on hotel performance, the impact of entrepreneurial effectiveness design on hotel performance, the impact of entrepreneurial lock-in design on hotel efficiency, and the impact of entrepreneurial mutually beneficial relationships design on hotel performance in Kisumu, Kenya, using data from star-rated hotels in the city. To achieve these objectives, this study was anchored on the Resource Base View (RBV) theory and porters’ Five Forces Model. The research applied correlational study design to establish the effect. The replies came from Kisumu City's star-rated public and private hotels. Twelve hotel managers and thirty-seven hotel supervisors participated in the census study. The data collection method employed was closed-ended questionnaires. During the data analysis process, descriptive statistics, such as measures of central tendency and information dispersion, were computed using SPSS. Additional analyses were conducted using regression analysis to determine the impact of implementing entrepreneurial designs on the performance of Kisumu City's star-rated hotels. The following was revealed by the regression analysis's results: The performance of hotels was positively and statistically significantly impacted by novelty design; efficiency design yielded a similarly significant and favorable effect; Hotel performance was positively impacted by complementarities design and lock-in design, both of which were statistically significant and beneficial. The study's findings confirmed the importance of entrepreneurial layout in affecting the profitability of five-star hotels in Kisumu, Kenya.