Key performance indicators in the Kenyan hospitality industry: a managerial perspective

Abstract

Purpose – The overall purpose of this study is to investigate impact of managerial characteristics on key performance indicators in the Kenyan hotel industry. Design/methodology/approach – A cross-sectional survey research design was used to gather primary data using self-administered questionnaires. A sample of 160 hospitality managers was selected proportionately by simple random sample method from six hotels in Nairobi and Mombasa. A custom factorial univariate analysis of variance was used to analyze the data. Findings – Hospitality managers in Kenya are still focusing on financial and result measures of performance while ignoring non-financial and determinant measures. Managerial demographic characteristics; age, education, current position, functional area, and performance appraisal influence managers’ choice of key performance indicators. Research limitations/implications – The model violated assumptions of homogeneity of variances. Literature review revealed a severe lack of Kenyan-based research in tourism and hospitality industries on performance measurement practices hence the need for future research in this area. Practical implications – The hotels need to invest in comprehensive performance management systems suitable for Kenyan hospitality industry that will incorporate both financial and non-financial performance measures. Originality/value – The study focuses on level of use of performance indicators and level of importance attached to performance indicators in the Kenyan hospitality industry. Managerial demographic characteristics influence on key performance indicators are examined in leading service industry in a growing economy thus contributing to a new body of knowledge in management literature in Africa.