Gaining Competitive Advantage in Hotels through the Application of Information Technology: a case of 2 - 5 star rated hotels
Loading...
Date
2013
Authors
Kagumba, Leah wamuyu K.
Maringa, Paul Mwangi
Journal Title
Journal ISSN
Volume Title
Publisher
Moi University
Abstract
This study was a response to the present crisis in Kenyan hotels that are threatened by a
dwindling international market share. It sought to establish a clear relationship between
Information Technology Application as the independent variable, and Competitive
Advantage, the dependent variable. A number of previous studies have suggested
that Information Technology (IT) can be used as a strategic instrument that enables
a company to achieve Competitive Advantage. In this study the effects of applying
information technology on Competitive Advantage were measured through the seven
dimensions of the construct, Competitive Advantage Provided by an Information
Technology Application [CAPITA]. These dimensions are: Primary Activity Efficiency,
Support Activity Efficiency, Resource Management Functionality, Resource Acquisition
Functionality, Threats Response, Pre-emptiveness, and Synergy. Information was
surveyed in Nairobi city, the Kenyan Coast and Nature Reserves Clusters, using the
cross-sectional exploratory survey research design. The study used structured interview
schedules as data collection instruments. The study focused on 2,3,4, and 5-star rated
hotels, which constitute a significant 79 per cent of the total number of 2 to 5-star rated
hotels in the country. Cluster and stratified probability sampling was complemented
with simple random probability sampling. With complex sampling 30 respondents in
management were interviewed from 30 hotels within the three principal tour circuits
in the country. Data was gathered in the ordinal scale of measurement and Spearman's
rank correlation analysis and its related test of significance were applied appropriately to the data. The study established that the seven dimensions of the CAPITA construct
do respond to the Application of IT in hotels. This study has also successfully proven
the alternate hypothesis: there is a relationship between the Application of information
technology and Competitive Advantage in Kenyan hotels. The analysis confirmed
a strong correlation between the response of Competitive Advantage in the seven
dimensions of the CAPITA construct of hotels, to the Application of IT in hotels, as
well as with their star rating or the quality of facilities and personnel in hotels.
Description
Research Article
Keywords
Competitive advantage, E-Hotels, Information technology, CAPITA constructs
Citation
East African Journal ofInformation Sciences Vol.3 No.1; 2013