STRATEGIC ENTREPRENEURSHIP, LEAN-GREEN PRACTICES AND PERFORMANCE OF MEDIUM HOTELS IN KENYAN CITIES

Abstract

Strategic entrepreneurship has been associated with adopting technologies, products, and administrative innovations which culminate in better firm performance. The current rapidly changing and highly competitive market has put companies under great pressure to adopt sustainable practices, in terms of keeping a healthy balance among economic, environmental, and social performances. Studies done in the hotel industry have not addressed the contribution of strategic entrepreneurship on performance and competitiveness. The general objective of this study was to determine the influence of strategic entrepreneurship on performance among medium hotel enterprises in Kenyan cities. Specifically, the study examined the influence of entrepreneurial mindset on performance, established the influence of innovations on performance, analyzed the influence of capital mobilization on performance, examined the effect of networks on performance, and established the moderating influence of lean-green practices on the relationship between strategic entrepreneurship and performance of medium hotel enterprises in Kenyan cities. The study was anchored on Schumpeterian Innovations Theory, Natural Resource Based-View Theory, and Dynamic Capabilities Theory. The study adopted the pragmatic research philosophy and employed a mixed-method research design. The study population was 534 managers of medium sized hotel enterprises in Mombasa, Kisumu, and Nairobi. The sample size was determined using the Yamane (1967) sampling formula, resulting in a sample of 229 respondents. A proportionate stratified sampling technique was applied to get a representative sample of each city. Primary data was collected using a semi-structured questionnaire. A pilot study was carried out in Nanyuki and Embu towns among medium hotel enterprises to test the reliability and accuracy of the research instruments. Construct validity was determined by calculating average variances extracted (AVEs) for each construct, then reliability using Cronbach’s Alpha internal consistency index. The Statistical Package for Social Sciences (SPSS) was used as the main software for data analysis. The data was analyzed using descriptive and inferential statistics. Pearson’s correlation and regression models were used to analyze quantitative data while qualitative data was analyzed using content analysis. The hypothesis testing used structural equation modeling. The hierarchical multiple moderated regression model was used to measure the strength of the relationship between strategic entrepreneurship , lean-green practices and performance of medium hotels in Kenyan cities. From the joint effect model the results established that strategic entrepreneurship had the most significant influence on performance of medium hotels in Kenyan cities (Regression coefficient .751, p = .000) followed by lean-green practices (Regression coefficient .417, p = .000), and positively and significantly moderate the relationship between strategic entrepreneurship and performance (Regression coefficient .937, p = .017) with R2 change 1 percent additional variance. The study concluded that lean-green practices positively moderate the relationship between strategic entrepreneurship and performance of medium hotels. Based on the findings, the study recommends enhancement of designing, implementing, and utilizing strategic entrepreneurship with lean-green practices in medium hotels production matrix. The findings are beneficial to the management and stakeholders in the hotel industry and academia.