The hospitality industry is increasingly
characterized by rapid technological change, changing customer expectations,
intensified competition and environmental uncertainty. Technology orientation
has consequently become an important strategic capability through which hotels
seek to improve operational efficiency, service delivery, customer experience
and competitiveness. However, the performance value of technology orientation
may depend on the external conditions under which hotels operate. This study
examined the moderating role of environmental turbulence in the relationship
between technology orientation and the performance of star-rated hotels in
Nairobi City County, Kenya. The study adopted a positivist philosophy and a
quantitative explanatory cross-sectional survey design. The target population
comprised 600 managerial and strategic employees in 41 three-, four- and
five-star hotels. Using Yamane's formula (Yamane, 1967), a sample of 240
respondents was selected through stratified random sampling. A total of 149
usable questionnaires were returned, giving a response rate of 62.1%. Data were
collected using a structured five-point Likert-scale questionnaire and analyzed
using descriptive statistics, Pearson correlation, multiple regression and
hierarchical moderated regression. Technology orientation had a positive and
statistically significant relationship with hotel performance (B = 0.193, beta
= 0.201, t = 3.164, p = 0.002). Environmental turbulence also had a positive
direct effect on hotel performance (B = 0.148, beta = 0.136, t = 3.020, p =
0.003). Most importantly, the Technology Orientation x Environmental Turbulence
interaction was positive and statistically significant (B = 0.079, beta =
0.158, t = 2.257, p = 0.026). The explanatory power of the full moderation
model increased from R2 = 0.481 to R2 = 0.534. The findings indicate that
environmental turbulence strengthens the performance benefits associated with
technology orientation. The study concludes that technology-oriented hotels are
better positioned to respond to turbulent environments and recommends continued
investment in digital infrastructure, technology skills and adaptive
technological capabilities.
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