Influence of Information Communication Technology Infrastructure on Operational Efficiency of Upscale Hotels in Nyeri County, Kenya
Loading...
Date
2024-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The post-COVID-19 impact has led to the closure and exit of several hotel sector players, with only a few surviving by leveraging information-based strategies. The emphasis on utilizing information and communication technologies (ICT) and related infrastructure has become paramount to enhance competitive advantage, deliver customer satisfaction, and create memorable experiences in the hotel industry. Despite these efforts, the performance of the hotel sector, particularly in lowland areas of Kenya, remains suboptimal. This study aimed to ascertain the influence of ICT infrastructure on operational efficiency in the hotel industry in Nyeri County, Kenya. Specifically, the study examined the influence of ICT hardware, software, network infrastructure, and ICT people resources on operational efficiency. The theoretical framework was based on Porter's Value Chain Theory, Market Power Theory, Resource-Based View Theory, and the Technology Acceptance Model. Due to the limited number of hotels in Nyeri County, a descriptive and explanatory research design was adopted using a census approach. Data were collected via a closed-ended semi-structured questionnaire on a five-point Likert scale. The research instrument's validity was assessed and reliability was tested using Cronbach's Alpha, achieving a coefficient score of 0.7 or above, indicating acceptable reliability. Data analysis was conducted using SPSS software, employing both descriptive and inferential statistics. The analysis included ANOVA, coefficient of determination, and model summary to explore the relationships between the variables. The descriptive results indicated a significant positive effect of ICT hardware infrastructures on operational efficiency. However, ICT software did not show a substantial direct influence. Network infrastructure significantly influenced operational efficiency, while ICT people resources had no substantial effect on the operational efficiency of hotels in Nyeri, County. Based on these findings, it is recommended that hotel management in Nyeri County should prioritize investments in ICT hardware and network infrastructures to enhance operational efficiency. Furthermore, policy interventions should focus on improving ICT infrastructure to support the sustainable growth of the hotel industry in the region.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration (Management Information Systems Option) of Kenyatta University. June 2024
Supervisor
Joshua Tumuti