Entrepreneurial Orientation and Organizational Performance of Star Rated Hotels in Kenya

Abstract

This study examined the relationship between entrepreneurial orientation and organizational performance of star-rated hotels in Kenya. The hospitality industry is increasingly characterized by intense competition and environmental dynamism, necessitating entrepreneurial strategic behaviors to enhance firm performance. Despite the growing scholarly interest in entrepreneurial orientation, limited empirical evidence exists regarding its influence on hotel performance within the Kenyan context. The study adopted a quantitative research design and collected primary data from managers of star-rated hotels across Kenya using structured questionnaires. Entrepreneurial orientation was operationalized through three dimensions: innovativeness, competitive aggressiveness, and proactiveness. Organizational performance was measured using indicators of operational efficiency, customer satisfaction, and profitability. Data were analyzed using inferential statistical techniques, including regression analysis, to establish the relationship between entrepreneurial orientation and organizational performance. The results revealed a strong, positive, and statistically significant relationship between entrepreneurial orientation and organizational performance. Specifically, entrepreneurial orientation exhibited a substantial explanatory effect on organizational performance (β = 0.971, p = 0.000), indicating that higher levels of entrepreneurial orientation are associated with improved performance outcomes among star-rated hotels. Hotels that demonstrated greater innovativeness, pursued aggressive competitive strategies, and proactively responded to market opportunities recorded superior performance compared to those with lower entrepreneurial orientation. The findings provide empirical support for the relevance of entrepreneurial orientation in enhancing firm performance within the hospitality sector. This study contributes to the entrepreneurship and hospitality management literature by extending empirical evidence on entrepreneurial orientation–performance linkages in a developing economy context, with specific reference to star-rated hotels in Kenya