Significance of Internal Business Processes on Entrepreneurial Orientation in Kenya Business Hotels

Abstract

Purpose: The purpose of the research was to examine the significance of internal business processes on the entrepreneurial orientation of Business hotels in Kenya.
 Methodology: The study used a mixed-method design. Both Qualitative methods were used. A survey questionnaire was used and focus group discussions were also employed in the study. The target population was business hotels in Kenya where 246 hotels were sampled. The data was analyzed using, mean and standard deviation and binary logistic regression model to test the significance of business process to entrepreneurial orientation.
 Findings: The findings indicate that hotels were risk takers when it came to projects involving their business processes. These daring moves were risky because there was no guarantee that the profits would cover the cost of their establishments. Hotels were moderately proactive in initiating and implementing changes as the market demanded. To maximize their returns on process innovations, hotels actively sought new processes, placed emphasis on them, and marketed their process offering to customers. When faced with uncertainties, the hotels took aggressive approaches to maximize opportunities on business processes. The focus group discussion revealed that although the processes were practiced by employees most hotels did not have documented processes. Hotels with the more structured business process are more likely to be proactive than those with fewer business processes. Business processes were found to be a significant predictor of Entrepreneurial Orientation.
 Unique Contribution to Theory, Practice, and Policy: The study provides insights into the Entrepreneurial Strategic Posture idea by explaining how the hotel uses its business process to create strategic positioning of its products and services. As a service industry, the hotel industry relies on the processes it employs to provide services in order to create memorable experiences for guests. These processes provide a significant interpretation of service quality to guests, which is critical to the hotel business. Being proactive or reactive to these processes gives hotels a competitive advantage, which benefits hotel performance. Hotels are encouraged to continuously improve and innovate their processes to ensure they remain competitive in their industry competition landscape.