THE INFLUENCE OF BLUE OCEAN STRATEGIES ON ORGANIZATIONAL PERFORMANCE OF THE THREE AND FOUR-STAR RATED HOTELS IN NAIVASHA SUB-COUNTY, KENYA
Abstract
Background of the study: Blue Ocean Strategies represent innovative and value-centric approaches designed to carve out unexplored market spaces, shifting the emphasis from competition to innovation. Nevertheless, the impact of these strategies on the performance of three and four-star hotels in Naivasha Sub-County remains uncertain, prompting the initiation of this study.
Objective of the study: The primary goal is to assess how the adoption of blue ocean strategy influences the organizational performance of star-rated hotels in Naivasha, Kenya. Specifically, the study aims to examine the effects of low-cost strategy and value innovation strategy on the organizational performance of these hotels.
Methodology: The Resource-Based View theory and the Beach theory will serve as the theoretical framework for this study, conducted through a descriptive survey design. Thirty-eight three and four-star rated hotels in Naivasha, Kenya, constitute the target population. The study used a census due to the relatively low target population size. A pilot study was executed among 3 to 4-star rated hotels in Kisumu sub-county, chosen for their similar operational environment. The questionnaire's validity was determined by a supervisor and two strategic management experts, while reliability was established through Cronbach Alpha Coefficients, interpreted at a 0.7 level, based on the pilot study outcomes. The study involved 76 respondents, with each hotel selecting two managers who were knowledgeable about blue ocean strategies and their influence on organization's performance. Primary data was gathered through the use of a questionnaire. The study used descriptive and regression analysis to analyze the data.
Results and Findings: The results, showcased in tables and figures, indicated that low-cost strategy (p<0.05) and value innovation strategy (p<0.05), have a positive and significant effect on the firms’ performance of the 3 and 4-star rated hotels in Naivasha Sub-County, Kenya.
Conclusion and Recommendation: As a result, the study concludes that blue ocean strategies are substantial predictors of organizational performance. The study recommends that senior managers working with the three and four star rated hotels in Naivasha sub sub-county should ensure there is prudent and optimal utilization of resources to harness superior performance. The Information and Communication Technology (ICT) managers working with these hotels should invest in emerging technologies to increase operating efficiency and reduce costs hence better organizational performance. The study further recommended that operational managers working with the three and four star rated hotels in Naivasha sub sub-county should actively redesign the systems and processes that are conducted on a daily basis for increased flexibility and agility hence better organizational performance of their hotels.
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