Abstract
Purpose: The study sought to assess the effect of firm orientation on the performance of hotels in Nairobi, Kenya.Methodology: The study adopted a descriptive research design. The target population of the study was 232 consisting of 174 employees in three cadres of staff and 58 hotel owners from the 58 hotels in Nairobi region that are registered with Kenya Association of Hotel Keepers. Since this number was small and easily manageable, the study adopted a census. The study used primary data collected through the administration of questionnaires. Statistical Package for Social Sciences (SPSS) was used to aid the processing and analysis of the data collected. Multiple linear regressions were conducted. The statistics that generated included descriptive statistics and inferential statistics.Results: The study findings revealed that market structure in terms of industry competition and market power, organizational structure, strategic orientation and market orientation had a positive effect on the performance of hotels in this county.Unique contribution to theory, practice and policy: The study recommended that sufficient regulation and supervision within the hotel industry was needed to ensure healthy competition among the businesses especially due to the competitive nature of the industry. Hotel businesses had to develop positioning strategies such as quality customer service, physical attractiveness, and range of product offerings, unique product features, and safety and security systems, information technologies which would enable them to perform and survive the stiff competition within the industry. The study also recommended that a blend of organization structure that allowed greater organization of the functions of the hotels and ensured efficient and easier way of corporation and coordination among different stakeholders should be adopted. Since strategic orientation comprised of all the other firm orientations and was one of the most important tools in a firm, the study recommended that it was crucial for the hotels to set aside resources that would support the implementation of various strategies to deal with every challenge in the businesses. The study further recommended that it was necessary for the hotels to advance their competitor orientation by keeping up with and constantly monitoring the strategies employed by their competitors.