Moderating role of service innovation on the relationship between corporate reputation and performance of hotels in Kenya

Abstract

corporate reputation and the performance of hotels in Kenya. The study design used was crosssectional descriptive utilizing the mixed approach. The target that served as the study population, was General Managers of all the 4-star hotels in Kenya. Primary data was collected by the use of a selfadministered semi-structured questionnaire and secondary data from hotel records, journals, and government publications. Data analysis involved qualitative and quantitative techniques, analyses of variance (ANOVA), and Structural Equation Modelling (SEM) which tested the hypothesized relationship in this study. Statistical software such as Statistical Package for Social Sciences version 21, MS-Excel for Windows 8, Analysis of Moment Structures version 17, and SmartPLS version 2.0 was used for analysis. The theoretical models and hypotheses were tested based on empirical data gathered from 43 General Managers. The study findings indicate that corporate reputation positively and significantly influences performance (C.R = 5.907 at 5% α-level) and service innovation moderates (R2 change = 0.054) the relationship between corporate reputation and performance. The study results are meant to benefit hotel industry policymakers, academicians, and other opportunistic entrepreneurs. The recommendation is that the hotel industry should invest seriously in corporate reputation so as to influence customer purchase behavior and improved performance.