STRATEGIC LEADERSHIP PRACTICES AND PERFORMANCE OF THREE STAR HOTELS IN NAIROBI CITY COUNTY, KENYA

Lydia Kalumi Ngui, Dr. Paul Kariuki

Abstract


Leadership is a key determinant of organization success. The hospitality industry is changing very fast in the 21st century due to globalization, political, economic, social and technological factors. Strategic leaders are required to lead organizations towards success. The performance of Kenya's hospitality business has deteriorated over the last five years, with daily rates, occupancy levels, and revenue all decreasing. The general objective is to determine effect of strategic leadership on performance of three-star hotels in Nairobi County, Kenya. The study sought to to assess how strategic leadership practices of corporate culture, and strategic control affect performance of three-star hotels in Nairobi County. The study was guided by transformational leadership theory and Path-Goal theory.  A descriptive research design was adopted. The target population was 254 senior management staff in human resource, finance, house-keeping and customer service departments. Stratified random sampling was used to sample 76 management staff. Data collection tool was a questionnaire which was tested for validity and reliability. Data analysis was done using SPSS software version 28 to yield descriptive and inferential statistics and presented in the form of tables. The regression analysis reveals significant findings regarding the predictors of hotel performance. Corporate culture demonstrates a significant positive effect on performance (β = 0.415, p = 0.031), highlighting the importance of fostering a conducive organizational culture for enhancing hotel outcomes. Moreover, strategic control exhibits a significant impact on performance (β = 0.376, p = 0.002), emphasizing the role of robust control mechanisms in driving hotel success. Based on the findings, cultivating a positive corporate culture that prioritizes employee engagement, teamwork, and ethical conduct is essential. Additionally, strengthening strategic control mechanisms to monitor performance metrics and mitigate risks can enhance operational efficiency.

Key Words: Strategic Leadership Practices, Corporate Culture, Strategic Control, Performance, Three-Star Hotels

Full Text:

PDF

References


Agyare, R., Yuhui, G., Mensah, Aidoo, Z. & L. Ansah, I. O. (2018). The Impacts of Performance Appraisal on Employees’ Job Satisfaction and Organizational Commitment: A Case of Microfinance Institutions in Ghana. International Journal of Business and Management 11(9):281

Al Thani, F. B. H., & Obeidat, A. M. (2020). The impact of strategic leadership on crisis management. International Journal of Asian Social Science, 10(6), 307-326

Bahati, (2023). Organizational Cultural Change and Its Impacts on Performance in Public Institution: The Case of Tanzania Public Services College. Unpublished Masters’ Thesis, The Open University of Tanzania

Birsan, M., Susu, S. & Balan, A. (2018). The Impact of Organizational Culture on the Competitiveness of Contemporary Companies. University of Suceava, Romania 4(1), 94-99.

Chikwe, G. C, Anyanwu, P. C. & Edeja, S. M. (2018). Examination of Strategic Control and Continuous Improvement as Competition Enablers in Small and Micro Enterprises: A Study of Selected Pure Water Manufacturing Firms in Ebonyi State. Advance Research Journal of Multidisciplinary Discoveries Business Management, 1(1).

Choon, T. & Cheng, K. (2018). The Impact of Goal Setting on Employee Effectiveness to Improve Organisation Effectiveness: Empirical study of a High-Tech Company in Singapore. Journal of Business & Economic Policy, 3(1)82-97

Enofe, A. O., Ogbeide, O. L. & Julius, O. M. (2019). Business Ethics and Corporate Growth. Business Ethics, 7(15) 139-148.

Golensky, M., & Hager, M. (2020). Strategic leadership and management in nonprofit

Hofstede, G. (2020). The Cultural Relativity of Organizational Practices and Theories. Journal of International Business Studies. Pp. 75-89.

Ireland, D. (2018). Achieving and Maintaining Strategic Competitiveness in the 21st Century: The of Strategic Leadership. Academy of Management Executive, 19(4), 60–77.

Kamau, P. & Wanyoike, R.(2019). Corporate Culture and Organizational Performance: A Case of Mayfair Casino, Nairobi City County, Kenya. Global Journal of Commerce & Management Perspective, 8(1) 8-17

Kitonga, M. (2017). Strategic Leadership Practices and Organizational Performance in Not-For-Profit Organizations in Nairobi County in Kenya. Unpublished Ph.D. Thesis, Jomo Kenyatta University of Agriculture and Technology

Maina, J. (2018). Influence of Organizational Culture on Performance of Commercial Banks in Kenya. Unpublished Masters’ Thesis, University of Nairobi

Marthouret, E. (2018). The Effect of Quick Feedback on Employee Motivation and Performance. Unpublished Masters’ Thesis, Linköping University

Martins, N. & Martins, E. (2023). Organisational Culture. In Organisational Behaviour: Global and South African perspectives edited by SP Robbins, A Odendaal and G Roodt (pp. 379- 400). Cape Town: Pearson Education South Africa.

Muteti, O. N. (2019). Leadership Practices and Performance of Five Star Hotels in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (3), 720 – 634.

Mutia, P. N.(2019). Strategic Leadership and its Influence on Church Growth in Kenya. Unpublished Ph.D. Thesis, United States International University – Africa

Ng’ang’a, L. W., Waiganjo, E. W., & Njeru, A. W. (2018). Influence of Organizational Resources Portfolio On Organizational Performance in Tourism Government Agencies in Kenya. International Journal of Business and Commerce, 6(4), 1–17.

Northouse, P. G., & Lee, M. (2019). Leadership Case Studies in Education. London: SAGE Publications.

Nyamao, O.R. (2018). The Effect of Strategic Leadership on the Performance of Small and Medium Enterprises in Kenya. Unpublished Masters Thesis, University of Nairobi

Obijiaku, O. (2019). The Impact of Organisational Culture on Organisational Performance in Nigerian Banks. Unpublished Masters’ Thesis, National College of Ireland. organisations: Theory and practice. Oxford University Press

Redmond, J. (2018). Strategic and the Importance of Strategic Leadership. CPA

Robinson, D. G., Robinson, J. C., Phillips, J. J., Phillips, P. P., & Handshaw, D. (2019). Performance consulting: A Strategic Process to Improve, Measure, and Sustain Organizational Results. Oakland: Berrett-Koehler Publishers

Schneider, B., Ehrhart, M. G., & Macey, W. H. (2023). Organizational Climate and Culture. Annual Review of Psychology, 64, 361-388.

Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland, A. J. (2018). Crafting and Executing Strategy: The quest for Competitive Advantage. Concepts and Cases. (9th Ed.). Singapore: McGraw-Hill.

Wahjudi, D., Singgih, M., &Baihaqi, I. (2023). The Impact of Organizational Culture on Firm Performance: An Empirical Research on Indonesian Manufacturing Firms. International Journal of Productivity and Quality Management, 18(1)1–18.

Yesil, S. & Kaya, A. (2023). The Effect of Organizational Culture on Firm Financial Performance: Evidence from a Developing Country. Procedia - Social and Behavioral Sciences, 81(5) 428-437.

Yuliansyah, Y., Gurd, B., & Mohamed, N. (2017). The Significant of Business Strategy in Improving Organizational Performance. Humanomics, 33(1), 56-74.


Refbacks

  • There are currently no refbacks.