Business Location as a Catalyst for Competitive Advantage of Small Hospitality Enterprises in Eldoret, Kenya
Competitive advantage can result from the business location which offers an organization with an edge over its opponents as well as an ability to produce better value for the company. The choice of the right location is imperative to enterprise success as customers are motivated to transact within a location suitable to their needs. Crucial for identifying appropriate location are characteristics that provide enterprises an edge over competitors. This study investigated business location factors that catalyze competitive advantage of small hospitality enterprises in Eldoret town. Specifically, business location factors included accessibility, convenience, security and uncrowded area tested against competitive advantage. Four null hypotheses were tested. The study adopted explanatory research design with a sample size of 142 business persons from a target population of 221 businesses. Systematic sampling was used to identify the respondents whereas data was collected using questionnaires containing structured and unstructured questions. Factor analysis revealed that two components, accessibility and security adequately explained business location with the potential to influence competitive advantage of small hospitality enterprises. Multiple linear regression established that business location explained 53.3% (R2=0.533) variance on competitive advantage. The study rejected three null hypotheses that accessibility (B=0.240, p<0.05), security (B=-0.190, p<0.05) and convenience (B=0.301, p<0.05) do not influence competitive advantage and accepted the null hypothesis that uncrowded areas (B=0.043, p>0.05) do not influence competitive advantage. Conclusively, accessibility, security and convenience influence competitive advantage while uncrowded areas do not. Therefore, businesspersons operating small hospitability enterprises should choose their business locations keenly by ensuring accessibility and security of customers.
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