Assessment of the Relationship Between Entrepreneurial Orientation, Organisational Culture Adaptability and Performance of Christian Faith-Based Hotels in Kenya

Ruth Wanjiku Muriithi 1 , Teresia Kyalo 2  and Josphat Kinyanjui 3
  • 1 School of Business, Karatina, Kenya
  • 2 School of Business, Karatina, Kenya
  • 3 School of Pure and Applied Science, Karatina, Kenya

Abstract

Organisational culture has been the focus in both theory and practice and has captured attention throughout the last decade because of its substantial relationship between the concept itself and its outcomes such as gaining competitive advantage and performance in businesses. Entrepreneurial Orientation refers to the strategy making processes that it provides organisations with a basis for entrepreneurial decisions and actions. Despite of its importance and being a popular entrepreneurship concept there is little evidence of research that has been done to determine the relationship between Entrepreneurial Orientation, organisational culture adaptability and performance in hotels and where applied it is minimal. The purpose of this study was to determine the relationship between Entrepreneurial Orientation, organisational culture adaptability and performance of Christian Faith-Based Hotels in Kenya. This study was anchored on the epistemology philosophy and adopted a positivist approach. The study used the mixed methods approach guided by a cross-sectional survey research design. The variable items for organisational culture adaptability and performance were measured using the five-point Likert scale and using the Denison’s organisational survey instruments. The population of the study included 72 managers and 1878 junior staff from 24 Christian faith-based hotels in Kenya. Structural equation models (SEM) and an MMR model were fitted to assess the objective of the study. Based on the SEM and MMR models, the study found that adaptability has a significant positive influencing on the performance of Christian Faith Based Hotels β= 0.520, t= 2.444, p-value=0.018). The study also found that Entrepreneurial Orientation had a moderating role on the relationship between organisational culture adaptability and performance of Christian Faith Based Hotels based on the MMR model that had a significant change in R due to addition of the interaction term (R-square change=.063, F-change=4.293, p-value=0.043). The study is important to a business because it will encourage it to adapt to the environment to improve performance.

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