Service quality management practices, marketing productivity, firm characteristics, industry competition and performance of hotels in kenya

Abstract

The topic of the study was the influence of service quality management practices, marketing productivity, firm characteristics, industry competition and performance of hotels in Kenya. The study objectives were to assess the influence of service quality management practices on hotels’ performance in Kenya; establish the effect of firm characteristics on the hotel performance; assess the influence of industry competition on the hotel performance; determine the effect of service quality management practices on the hotel’s marketing productivity; establish the effect of marketing productivity on the hotel performance; examine the effect of industry competition on the relationship between service quality management practices and marketing productivity; establish the effect of firm characteristics on the relationship between service quality management practices and marketing productivity; assess the mediating effect of marketing productivity on the relationship between service quality management practices and firm performance and finally, examine the joint influence of service quality management practices, marketing productivity, firm characteristics and industry competition on the hotel performance. The pertinent hypotheses were derived from the objectives. The study population comprised 209 hotel firms. A descriptive cross-sectional survey was used. Primary data were collected using semi-structured questionnaire. Data were analyzed using descriptive statistics, inferential statistics and regression analysis. The results of the study revealed that service quality management practices significantly influences performance. The relevant results also showed that there is no significant effect of firm characteristics on hotel performance. Same results showed statistically significant influence of industry competition on hotel performance. In addition, the results revealed that there is statistically significant effect of service quality management practices on hotel’s marketing productivity and that marketing productivity significantly influence hotel performance. The results demonstrated that firm characteristics insignificantly moderate the relationship between service quality management practices and marketing productivity while industry competition significantly moderates the same relationship. Similarly, the study findings showed that marketing productivity does not significantly mediate the relationship between service quality management practices and firm performance. Finally, the joint effect of service quality management practices, marketing productivity, firm characteristics and industry competition was significantly stronger than that of individual factors on performance. The study has made contribution to theory, policy and practice in relation to marketing in general and service quality management specifically. The research was not without limitations. The selection of the study variables was not exhaustive. The use of single key-informant approach, a relatively small population, subjective performance measures, use of a descriptive cross-sectional research design and, focus only on firms in Coast and Nairobi put constraints on the generalizability of the results. Future research should seek to address these limitations by inclusion of the additional factors, use of a longitudinal research design, objective performance measures, multiple informant approach and examining of performance of service quality management practices in other sectors. Replication of the study and examining the relationship between service quality management practices, marketing productivity, firm characteristics and industry competition could serve as a useful reference for future research.