The Influence of Technology-based Self-service on Competitive Advantage of Five-star Hotels in Nairobi County, Kenya

Abstract

The popularity of technology-aided transactions continues to gain traction worldwide, partly attributable to the rising economic pressures compelling organizations to develop self-service platforms. Accordingly, customers across the globe are also increasingly embracing self-service platforms. Whereas some studies have attempted to investigate the technology based self-service phenomenon and its effect on competitive advantage of five-star hotels, the definition of star-hotel appeared to vary globally. Some of the studies have also under-explored the technology based self-service dimensions. A few studies have edged closer to the exact variables and dimensions, but all these had been in foreign contexts. Other studies have focused on the Kenyan context, but their analytical models have not focused on the measure of association between the variables. The current study therefore, using an explanatory cross-sectional survey design, sought to answer the question: What is the influence of technology-based self-service on competitive advantage of five-star hotels in Nairobi County? The study was guided by the postulations of technology acceptance model, and dynamic capability theories. The population of this study was all the 10 five-star hotels in Nairobi County, and data was collected using semi-structured questionnaire. Data was analyzed using Statistical Package for Social Sciences, and descriptive and regression analyses were done. The study determined that each of the selected technology based self-service dimensions had statistically significant influence on competitive advantage of the five star hotels in Nairobi County. The use of technology based self-service for direct transactions attracted the most favorable responses; followed by the use of technology based self-service for self-help; and customer service use. With respect to the competitive advantage, the cost effectiveness dimension had the most favorable responses; followed by customer service dimension. The product/service quality dimension of competitive advantage had the least favorable responses. Generally, the cost effectiveness dimension had the least dispersed response form the mean. The study recommends that an in-depth study should be done on the challenges facing the adoption of technology based self-service in other categories of hotels. The study also recommends that the influence of control variables such as the macroeconomic factors including interest rates, inflation, and foreign exchange rates should be examined, since that was not within the scope of the current study.