STRATEGIC INNOVATION STRATEGIES AND PERFORMANCE OF 3- STAR HOTELS IN NAIROBI CITY COUNTY, KENYA
Abstract
Purpose of the Study: The main objective of the study was to determine the relationship between strategic innovation strategies and performance of 3-star hotels in Nairobi City County, Kenya. Specifically, the study examined the relationship between service innovation, process innovation, market innovation, and technology innovation and organizational performance of 3-star hotels.
Statement of the Problem: The hospitality industry in Nairobi City County operates in a dynamic and highly competitive environment that requires continuous innovation to sustain and improve performance. However, limited empirical evidence exists on how strategic innovation strategies influence the performance of 3-star hotels, despite their important role in serving both domestic and international customers.
Research Methodology: The study adopted a descriptive research design and targeted 825 managers and employees from 3-star hotels in Nairobi City County. A sample of 269 respondents was selected using stratified random sampling, and data were collected using structured questionnaires and analyzed using descriptive and inferential statistics.
Findings: The study found that service innovation, process innovation, market innovation, and technology innovation had positive and significant relationships with organizational performance. Service innovation was the most influential factor, showing that improved service delivery, customer feedback, and personalized guest experiences enhance customer satisfaction and repeat visits. Process innovation improved performance by enhancing operational efficiency, reducing delays, and improving resource utilization. Market innovation contributed to improved performance by strengthening brand positioning, customer engagement, and competitive advantage. Technology innovation also enhanced performance through remote reservations, self-check-in systems, demand prediction tools, and automation.
Conclusion: The study concludes that strategic innovation strategies significantly influence the performance of 3-star hotels in Nairobi City County. A balanced application of service, process, market, and technology innovation improves customer satisfaction, hotel bookings, sales turnover, and long-term competitiveness.
Recommendations: The study recommends that hotel managers should continuously improve service delivery, automate key operational processes, adopt innovative marketing strategies, and invest in relevant digital technologies. The study also recommends that policymakers should support 3-star hotels through digital infrastructure, innovation-friendly policies, and capacity-building programs.
Keywords: Strategic Innovation Strategies, Performance, 3- Star Hotels, Nairobi City County, Kenya
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