Entrepreneurial Orientation and Performance of the Hospitality Industry in Nairobi County, Kenya
DOI:
https://doi.org/10.47941/ajss.3630Keywords:
Entrepreneurial Orientation, Firm Performance, Hospitality Firms, Nairobi County, KenyaAbstract
Purpose: The hospitality industry in Nairobi County operates in an increasingly turbulent and competitive environment, requiring firms to adopt proactive and innovative strategic behaviors to sustain performance. This study examined the influence of entrepreneurial orientation on firm performance among hospitality firms in Nairobi County, Kenya. Entrepreneurial orientation was conceptualized through innovativeness, proactiveness, and risk-taking behaviors.
Methodology: A cross-sectional correlational design was employed. The target population comprised 1,104 registered hospitality firms, including hotels, travel agencies, and tour operators. Using stratified random sampling, data were collected from 293 senior managers through structured questionnaires, supplemented with secondary performance data. Multiple regression analysis was conducted to test the hypothesized relationship.
Findings: The findings indicate that entrepreneurial orientation has a positive and statistically significant influence on firm performance. Firms exhibiting higher levels of innovation, proactive opportunity seeking, and calculated risk-taking reported superior outcomes in sales growth, market share, and return on assets.
Unique Contribution to Theory Practice and Policy: The study concludes that entrepreneurial orientation constitutes a critical dynamic capability within hospitality firms operating in volatile service markets. It recommends that managers institutionalize innovation-driven cultures, strengthen opportunity recognition processes, and allocate resources toward strategic experimentation to enhance sustained performance.
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Copyright (c) 2026 Anne Wanjiku Karanja, Professor Willy Muturi, Professor Allan Kihara, Dr. Samson Nyang’au Paul
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