Victor Kivuva Nzomo, Stephen Makau Muathe
Kenyatta University
Kenya star rated hotels are playing critical role in supporting the government’s vision 2030 and contributing 10% of the country’s economic growth. However, the hotel sector in Nairobi City County is experiencing declining occupancy at 34.4% which is lower than 59.4% in the Sub-Saharan Africa. The purpose of the study was to investigate the effect of digital agility and competitive advantage of star rated hotels in Nairobi City County, Kenya. The study was based on Porter’s theory of competitive advantage, Dynamic capability theory and Resource-based view theory. Experimental research design was adopted targeting 33 hotels in five-, four- and three-star categories. Systematic random sampling was used to identify 165 management employees. Semi-structured questionnaire enabled the collection of primary data. A pilot study was done consisting of 10% of the sample. Validity was achieved through content and face validity while Cronbach alpha enabled the analysis of the instrument’s reliability. For the analysis of primary data, descriptive and inferential statistics were employed. Presentations were made using tables, graphs, percentages, means, and standard deviation. Ethical principles such as the need for consent, privacy and data protection laws were respected. The results showed that digital agility had a statistically significant effect on competitive advantage. Conclusion was made that digital agility was significant to the competitive advantage of star-rated hotels. The study recommended that digital agility should be enhanced across the organization to improve competitive advantage. Future studies may consider the inclusion of customers.
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