Native Thoughts, Change Process and Performance of Star Rated Hotels in Kenya

Abstract

When organizations are established, they endeavour to operate in a manner that meets the needs of their immediate environment. This, notwithstanding, some operate in a manner that can lead to conflict wth the communities in which they operate. However, there is scarce empirical evidence on the relationship between native thoughts - incorporation of local context in organizational strategy - and performance of organizations. This study sought to determine the relationship between native thoughts and performance, and the effect of change process on that relationship. Specifically, it sought to assess the influence of cognition of local geography, local demographics, local culture, local politics and local economic status on performance of star rated hotels in Kenya, and to evaluate the effect of change process on this relationship. A mixed-methods survey of 450 managers from 150 hotels categorized into 3, 4, and 5 star hotels was conducted using structured questionnaires while an interview guide was used to collect data from 12 key informants in the hospitality industry. Quantitative data was analyzed using SPSS software version 26 and null hypotheses tested using binary logistic regression model results. It was found that cognition of local demographics, local economic-status and local geography significantly predicted the odds for performance of rated hotels, while cognition of local culture and local politics did not significantly influence the odds for performance. Further, change process partially and significantly mediated the relationship between native thoughts and performance. Based on these findings, it is concluded that native thoughts significantly influence the organizational performance while change process partially mediate this relationship. It is recommended that the hospitality industry and policy makers take into account the local context in strategic decisions.