Abstract
The study aims to evaluate the moderating role of service innovation on the relationship between corporate reputation and the performance of hotels in Kenya. The study design used was cross-sectional 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 self-administered 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% ?-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.
Highlights
Corporate reputation comprises of predictable behaviors, relationships and two-way communication by an organization and judged by stakeholders over time
Corporate reputation has long been recognized as a significant source of competitive advantage and as a value-creating resource that delivers consistent and superior market performance
Competitive advantage and market share according to the level of importance they give to innovations, which are vital factors for companies to build a reputation in the marketplace and increase their market share
Summary
Corporate reputation comprises of predictable behaviors, relationships and two-way communication by an organization and judged by stakeholders over time. International Journal of Research in Business & Social Science 10(1) (2021), 47-59 a new customer interaction channel, a distribution system or a technological concept or a combination of them (Law, Buhalis, & Cobanoglu, 2014) It involves new aspect in: solutions in the customer interface, distribution methods and novel application of technology in the service process, forms of operation with the supply chain or ways to organize and manage services. The study aimed to find out to what extent service innovation moderates the relationship between corporate reputation and performance of hotels in Kenya. The study hypothesized that; H1b: Service Innovation does not moderate the relationship between corporate reputation and performance of hotels in Kenya
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