The effects of innovation strategies on business sustainability of SMEs in hospitality service industry in Nairobi County beyond COVID-19 pandemic

Abstract

This study investigated the impact of innovation strategies on the business sustainability of small and micro enterprises (SMEs) in the hospitality service industry in Nairobi County, particularly in the aftermath of COVID-19. Recognising the importance of innovation in navigating uncertainties, the research aimed to analyse how innovative approaches influenced the sustainability of SMEs in the hospitality sector beyond the pandemic. The study focused on registered SMEs in Nairobi's CBD, employing a descriptive research design. From a total population of 2490 SMEs, a sample of 249 was selected using stratified sampling. Self-structured questionnaires were utilised for data collection and the regression method was employed for analysis. Results of the regression model on Innovative approaches not only assisted businesses in adapting to post-COVID-19 challenges but also contributed to improved service quality and operational resilience. The study's implications extend to SMEs in similar industries, offering practical insights for fostering innovation as a key driver for sustained success. The study recommends that the CBD should improve in process, product & market innovation by creating uniqueness and innovative ideas that will attract customer to the SME`s for the hospitality business in Nairobi. According to the study, the SME`s should also invest in marketing technology that is not costly like social media marketing to brand their products for both local and international market.