firm, entrepreneurial intensity and performance of hotel enterprises in uasin gishu county, kenya

Abstract

The development of entrepreneurial intensity in an enterprise is important in accelerating the innovation of new products and services. This study examined the influence of the enterprise profile and external environment on enterprise performance through entrepreneurial intensity in the hotel enterprises in Uasin Gishu County, Kenya. The specific objectives were to determine; the influence of the enterprise profile on entrepreneurial intensity, the relationship between external environment and entrepreneurial intensity, the influence of entrepreneurial intensity on enterprise performance; relationship between enterprise profile and performance through entrepreneurial intensity and the influence of the external environment on enterprise performance through entrepreneurial intensity. The objectives of this study were achieved through developing an entrepreneurial intensity and performance model. This study was guided by the psychological, behavioral and social cognitive theories of entrepreneurship. The study was anchored on a realist ontology and a postpositivist epistemology. The research design was a survey. From a target population of 4465, a sample of 450 respondents consisting of 297 hotel enterprise employees and 153 hotel enterprise owners participated in the study. Questionnaires were the main data collection instruments. Data was analyzed using the Structural Equation Modelling (SEM) technique. Exploratory Factor Analysis (EFA) was used to explore possible underlying factor structure of observed variables before Confirmatory Factor Analysis (CFA) was undertaken to verify the factor structure. SEM was used to test the study hypotheses. The results of this study show that the enterprise profile influenced entrepreneurial intensity (β=0.822, p<0.001); external environment had a significant relationship with entrepreneurial intensity (β=0.214, p<0.001). There was a positive influence of entrepreneurial intensity on enterprise performance (β=0.900, p<0.001). However, there was no relationship between enterprise profile (β=0.003, p>0.05), external environment (β =0.032, p>0.05) and enterprise performance through entrepreneurial intensity. The findings of this study indicate that the enterprise profile and external environment influenced entrepreneurial intensity which enhanced enterprise performance. Enterprise performance is derived from entrepreneurial intensity influenced by the enterprise profile and external environment. This study concludes that entrepreneurial intensity is industry specific. Hence, enterprises that wish to be entrepreneurial should cultivate organizational conditions conducive to the development of entrepreneurial intensity. This study recommends a reward and recognition system with its related bonus scheme which are appropriate for incremental entrepreneurial activities at the individual and team levels. Hotel enterprises should monitor the external environment and develop appropriate strategies to counter environmental threats which may arise. Hotel enterprise owners should encourage entrepreneurial behaviour through recognition and acting as role models to employees. They should also embrace failure and success to enhance entrepreneurial behaviour within their enterprises.