Influence of Political Environment on Performance of International Hotel Chains Operating in Nairobi, Kenya
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Date
2016Author
Kigera, Pauline M
Type
ThesisLanguage
en_USMetadata
Show full item recordAbstract
Organizations respond to the external environment to stay afloat in the ever changing
environment that they operate in (Beck et al., 2010). One of the environmental factors
that most businesses have to deal with is the political environment. Companies have to
respond to the environment strategically in order to be sustainable and avoid losses
(Johnson et al., 2008; 2005). The election politics and environment in Kenya often affect
International Hotel Chains. The factors that have shaped and influenced the country‘s
political environment include consumers, legislation, taxation, infrastructure, power
availability, peace and stability; the electoral legislation and administration of justice as
well as discipline of law enforcement agencies; the economic impact in terms of taxation,
government spending, general demand, interest rates, exchange rates and global economic
factors; political and government policy; rapid technological changes that also affect
production processes and product innovation in business; among others.The primary
objective of this study was to assess the influence of political environment on the
Performance of International Hotel Chains in Nairobi, Kenya and develop a
framework for the identification of political environmental issues faced by
international hotel chains in Nairobi, Kenya. The study collected primary data by use
of a questionnaire. Data collected was analyzed through descriptive statistics, multiple
linear regressions was undertaken with a view of examining the cumulative effect of the
independent variables (Political environment and its impact) on the dependent variable
(performance of International Chain Hotels). The results concluded that there is a positive
influence of each independent variable on dependent variable with the other independent
variables held constant. The aim of this paper is to establish a comprehensive view of
what political environment is and to identify the importance of variables for the
decision makers of international hotel firms and experts in this area. The first part of
this paper is based on a thorough review of the literature concerning political
environment and performance, the importance of political environment in relation to
hotel performance and tourism industry, and the way of analysing political
environment. Also, the relevance and importance of perception to political
environment assessment suggests an ideal methodology for the present study. In the
concluding part, application for hotels operating in Nairobi, Kenya will be made. This
study determines the major political factors and constraints for international hotel
chain development and identified variables which can be utilized by government for
eliminating and controlling negative political factors. It is suggested that active
involvement of host country government would be necessary' in order to create
favorable political environment and promote more foreign investments.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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