Entrepreneurial Orientation, Service Quality And Performance Of Hotels In Gulu City, Northern Uganda
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Date
2023
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Gulu University
Abstract
The inconsistent business performance has received significant attention from different scholars over the world. The hotel industry has never been any exception. The purpose of the study was to establish the relationship between EO and HP in Gulu City, Northern Uganda. The study population comprised of 460 which was drawn from 50 hotels operating in Gulu City through simple random sampling. A sample size of 210 was determined using Krejcie & Morgan population Table and the employees were purposively selected. The study adopted a combination of cross section and correlation research design. Both quantitative and qualitative approaches were employed. Quantitative data was collected using questionnaire and qualitative data using interview guide. Quantitative data was analyzed using SPSS software version 20 while for quantitative data,
thematic analysis was used. The study revealed that all the three EO (innovation, pro-activeness and risk-taking) were being adopted by hotels in Gulu City. Hotel performance was good since the average score was high. The study findings also revealed that there is a significant positive relationship between EO and HP in Gulu City. Multiple regressions results indicated that EO is a predictor of HP and it contributes to HP by 27.9%. Both innovativeness and pro-activeness were statistically significant as opposed to risk-taking. Firm’s innovativeness, pro-activeness and firm’s risk-taking had a moderate influence on hotel performance. Based on 5000 bootstrap sample, the result indicated a partial mediation of service quality on the relationship between entrepreneurial orientation and hotel performance. Service quality emerged to have a direct significant influence on hotel
performance while entrepreneurial orientation had an indirect significant influence. The intervening variable (service quality) accounted for 52.0% of the total effect on hotel performance. The study concludes that, EO uptake in Gulu City was high. Hotel performance level was good. Innovativeness and pro-activeness had strongest influence on hotel performance. Service quality mediated the relationship between EO and HP. Based on these findings, the study recommended that; the good practice of EO must continue while also there is need to maintain the hotel level of performance. Hotel management needs to focus much on innovativeness and pro-activeness. EO and Service quality as noted to have a significant influence on HP, the two needs to be handled simultaneously so as to further improve hotel performance.
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Keywords
Entrepreneurial Orientation (EO), Service Quality (SQ), Hotel, Performance and Hotel Performance (HP).