Moderating Effect of Competitive Dynamics on Social Media Marketing and the Performance of Star Rate Hotels in Kenya
Keywords:
Firm performance, Star Rated Hotels, Social Media Marketing, Competitive Dynamics
Abstract
The purpose of this study was to investigate the moderated effect of competitive dynamics on the link between social media marketing and firm performance among star rated hotels in Kenya. The specific objectives of the study were to determine the effect of social media marketing and the moderating role of competitive dynamics on the performance of star rated hotels in Kenya. This study employed the use of social media integration theory, dynamic capability theory and social exchange theory to test the relationship between the variables. Explanatory research design was adopted and the targeted population was the 215 star rated hotels listed on the Tourism Regulatory Authority. Each individual hotel produced a single respondent who was the employee in charge of social media marketing activities. Closed ended questionnaires were administered for the respondents to choose their best current situation. Census survey was adopted for the study and all the 215 hotels were studied. Regression analysis was used to analyze the relationship between the variables. Factor analysis was done using principal components analysis. Regression results indicated that social media marketing significantly affects performance positively (p= 0.015<0.05). Competitive dynamics on the other hand did not show significant influence on firm performance but can act as a moderator (p=0.340˃0.05). Moderating role of competitive dynamics was positive and significant (p=0.009˂0.05). The studied evidently showed that the use of social media as marketing tool has positive significant effect on the firm performance of star rated in terms of customer satisfaction, market share growth and realized profits. The findings recommend that hotels adopt the use of SMM for performance enhancement and product innovation. This study contributes to knowledge by looking at the implementation and use of SMM by star rated in Kenya. The results are of great importance to the hotel industry as they can be able to access wide global client reach due to advancement in social technological interactions.
References
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Bhanot, S. (2004). A study of the luxury brand market with respect to suits and watches. SIES Collage of Management Studies, Nerul Navi Mumbai, 1-16.
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Blau, G. J. (1986). Job involvement and organizational commitment as interactive predictors of tardiness and absenteeism. Journal of management, 12(4), 577-584.
Bock, G. W., & Kim, Y. G. (2002). Breaking the myths of rewards: An exploratory study of attitudes about knowledge sharing. Information Resources Management Journal (IRMJ), 15(2), 14-21.
Burgelman, R. A., & Grove, A. S. (2007). Cross‐boundary disruptors: powerful interindustry entrepreneurial change agents. Strategic Entrepreneurship Journal, 1(3‐4), 315-327.
Cetindamar, D., Phaal, R., & Probert, D. (2009). Understanding technology management as a dynamic capability: A framework for technology management activities. Technovation, 29(4), 237-246.
Chen, M. J., & Miller, D. (2012). Competitive dynamics: Themes, trends, and a prospective research platform. Academy of management annals, 6(1), 135-210.
Clarke, K. R., Somerfield, P. J., &Gorley, R. N. (2008). Testing of null hypotheses in exploratory community analyses: similarity profiles and biota-environment linkage. Journal of experimental marine biology and ecology, 366(1-2), 56-69.
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Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they?.Strategic management journal, 21(10‐11), 1105-1121.
Erokhin, V., Endovitsky, D., Bobryshev, A., Kulagina, N., &Ivolga, A. (2019). Management accounting change as a sustainable economic development strategy during pre-recession and recession periods: evidence from Russia. Sustainability, 11(11), 3139.
Fathaniy, A. Z. (2011). The role of human resource practices, supervisory support and work-life balance policies on employee intention to stay: A study in Oil and Gas Company.Malaysia: Masters Thesis, Universitity
Gensler, S., Völckner, F., Liu-Thompkins, Y., &Wiertz, C. (2013). Managing brands in the social media environment. Journal of interactive marketing, 27(4), 242-256.
Haddud, A., Dugger, J. C., & Gill, P. (2016). Exploring the impact of internal social media usage on employee engagement. Journal of social media for Organizations, 3(1), 1-23.
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review.
Hajli, M. N., & Lin, X. (2014). Developing tourism education through social media. Tourism Planning & Development, 11(4), 405e414.
Harrigan, P., Evers, U., Miles, M., & Daly, T. (2017). Customer engagement with tourism social media brands. Tourism management, 59, 597-609.
Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process analysis: Methodology in the Social Sciences. Kindle Edition, 193.
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Hua, N., &Upneja, A. (2012). Financial characteristics and outperformance: Evidence of a contemporary framework from the US lodging industry. International Journal of Contemporary Hospitality Management.
Ioncicã, M., Petrescu, E. C., Ioncicã, D., & Drãghici, M. (2007). Methods and indices of evaluation of the development and competitiveness of services in a knowledge-based society. The AMFITEATRU ECONOMIC journal, 9(22), 93-99.
Jones, N., Borgman, R., &Ulusoy, E. (2015). Impact of social media on small businesses. Journal of Small Business and Enterprise Development.
Keller, P. (2005) "Global tourism growth: A challenge for SMEs. A few thoughts by way of an introduction", Conference on global tourism growth, 6-7 September 2005, Gwangju, Korea
Ketchen Jr, D. J., Snow, C. C., & Hoover, V. L. (2004). Research on competitive dynamics: Recent accomplishments and future challenges. Journal of management, 30(6), 779-804.
Kim, A. J., & Johnson, K. K. (2016). Power of consumers using social media: Examining the influences of brand-related user-generated content on Facebook. Computers in Human Behavior, 58, 98-108.
Kim, W. G., Li, J. J., & Brymer, R. A. (2016). The impact of social media reviews on restaurant performance: The moderating role of excellence certificate. International Journal of Hospitality Management, 55, 41-51.
Kimani, E. (2015). Role of social media marketing on organisational performance in Kenya. Journal of Business and Management, 17(1), 101-105.
Kleinbaum, A. M., & Stuart, T. E. (2014). Network responsiveness: The social structural microfoundations of dynamic capabilities. Academy of Management Perspectives, 28(4), 353-367.
Koori, A. W., Muriithi, M. S., &Mbebe, M. J. (2018). Impact Of Social Media Usage On Organizational Performance Of Saccos In Kenya (A Case Study Of KUSCCO SACCO AFFLIATES). European Journal of Business and Strategic Management, 3(6), 27-51
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Lichtenthaler, U. (2009). Outbound open innovation and its effect on firm performance: examining environmental influences. R&d Management, 39(4), 317-330.
Masterson, S. S., Lewis, K., Goldman, B. M., & Taylor, M. S. (2000). Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships. Academy of Management journal, 43(4), 738-748.
McNamara, G., Vaaler, P. M., & Devers, C. (2003). Same as it ever was: the search for evidence of increasing hypercompetition. Strategic Management Journal, 24(3), 261-278.
Mutindi, U. J. M., Namusonge, G. S., &Obwogi, J. (2013). Effects of strategic management drivers on organizational performance: a survey of the hotel industry in Kenyan coast.
Nisar, T. M., & Whitehead, C. (2016). Brand interactions and social media: Enhancing user loyalty through social networking sites. Computers in Human Behavior, 62, 743-753.
Odhiambo, C. A. (2012). Social Media as a Tool of Marketing and Creating Brand Awareness, Unpublished master thesis, AMMA University of Applied Sciences, Finland.
O'shaughnessy, J. (2014). Competitive marketing (RLE marketing): A strategic approach. Routledge.
Pentina, I., Gammoh, B. S., Zhang, L., &Mallin, M. (2013). Drivers and outcomes of brand relationship quality in the context of online social networks. International Journal of Electronic Commerce, 17(3), 63-86.
Porter, M. E. (2008). Competitive advantage: Creating and sustaining superior performance. simon and schuster.
Rajabion, L., Nazari, N., Bandarchi, M., Farashiani, A., & Haddad, S. (2019). Knowledge sharing mechanisms in virtual communities: A review of the current literature and recommendations for future research. Human Systems Management, 38(4), 365-384.
Rapp, A., Beitelspacher, L. S., Grewal, D., & Hughes, D. E. (2013). Understanding social media effects across seller, retailer, and consumer interactions. Journal of the Academy of Marketing Science, 41(5), 547-566.
Spulber, D. F. (2009). Economics and management of competitive strategy. World Scientific Publishing Company.
Tarsakoo, P., &Charoensukmongkol, P. (2019). Dimensions of social media marketing capabilities and their contribution to business performance of firms in Thailand. Journal of Asia Business Studies.
Taylor, A., &Helfat, C. E. (2009). Organizational linkages for surviving technological change: Complementary assets, middle management, and ambidexterity. Organization Science, 20(4), 718-739.
Teece, D. J., Pisano, G., &Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of business research, 67(6), 1201-1208.
Vaynerchuk, G., &Vaynerchuk, G. (2011). The thank you economy (p. 256). New York: Harper Business.
Wasko, M. M., & Faraj, S. (2005). Why should I share? Examining social capital and knowledge contribution in electronic networks of practice. MIS quarterly, 35-57.
Wei, W., Hu, X., Li, Y., & Peng, P. (2015). Integrating nonmarket and market action, response, and initiating firm performance in competitive dynamics. Management Decision.
Woo, S. H., Pettit, S. J., Kwak, D. W., & Beresford, A. K. (2011). Seaport research: A structured literature review on methodological issues since the 1980s. Transportation Research Part A: Policy and Practice, 45(7), 667-685.
Yates, D., & Paquette, S. (2011). Emergency knowledge management and social media technologies: A case study of the 2010 Haitian earthquake. International journal of information management, 31(1), 6-13.
Zelga, K. (2017). The importance of competition and enterprise competitiveness. World Scientific News, 72, 301-306.
Allen, D. G., Shore, L. M., &Griffeth, R. W. (2003). The role of perceived organizational support and supportive human resource practices in the turnover process. Journal of management, 29(1), 99-118.
Arika, M. A. &Moronge, M. (2017). Influence of Social Media Marketing on Performance in Hospitality Industry in Kenya: A Case of Kenyatta International Convention Centre. The Startegic Journal of Business and Change Management, 2(54), 958-976
Baird, C. H., &Parasnis, G. (2011). From social media to social customer relationship management. Strategy & leadership.
Barney, J. (1991). Competitive Advantage. Journal of management, 17(1), 99-120.
Barney, J. B. (1986). Types of competition and the theory of strategy: Toward an integrative framework. Academy of management review, 11(4), 791-800.
Benitez, J. M., Martín, J. C., & Román, C. (2007). Using fuzzy number for measuring quality of service in the hotel industry. Tourism management, 28(2), 544-555.
Bhanot, S. (2004). A study of the luxury brand market with respect to suits and watches. SIES Collage of Management Studies, Nerul Navi Mumbai, 1-16.
Blanchard, A. L. (2008). Testing a model of sense of virtual community. Computers in Human Behavior, 24(5), 2107-2123.
Blau, G. J. (1986). Job involvement and organizational commitment as interactive predictors of tardiness and absenteeism. Journal of management, 12(4), 577-584.
Bock, G. W., & Kim, Y. G. (2002). Breaking the myths of rewards: An exploratory study of attitudes about knowledge sharing. Information Resources Management Journal (IRMJ), 15(2), 14-21.
Burgelman, R. A., & Grove, A. S. (2007). Cross‐boundary disruptors: powerful interindustry entrepreneurial change agents. Strategic Entrepreneurship Journal, 1(3‐4), 315-327.
Cetindamar, D., Phaal, R., & Probert, D. (2009). Understanding technology management as a dynamic capability: A framework for technology management activities. Technovation, 29(4), 237-246.
Chen, M. J., & Miller, D. (2012). Competitive dynamics: Themes, trends, and a prospective research platform. Academy of management annals, 6(1), 135-210.
Clarke, K. R., Somerfield, P. J., &Gorley, R. N. (2008). Testing of null hypotheses in exploratory community analyses: similarity profiles and biota-environment linkage. Journal of experimental marine biology and ecology, 366(1-2), 56-69.
Dicken, P. (2003). Global shift: Reshaping the global economic map in the 21st century. Sage.
Dixon, S. E., Meyer, K. E., & Day, M. (2010). Stages of organizational transformation in transition economies: A dynamic capabilities approach. Journal of Management Studies, 47(3), 416-436.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they?.Strategic management journal, 21(10‐11), 1105-1121.
Erokhin, V., Endovitsky, D., Bobryshev, A., Kulagina, N., &Ivolga, A. (2019). Management accounting change as a sustainable economic development strategy during pre-recession and recession periods: evidence from Russia. Sustainability, 11(11), 3139.
Fathaniy, A. Z. (2011). The role of human resource practices, supervisory support and work-life balance policies on employee intention to stay: A study in Oil and Gas Company.Malaysia: Masters Thesis, Universitity
Gensler, S., Völckner, F., Liu-Thompkins, Y., &Wiertz, C. (2013). Managing brands in the social media environment. Journal of interactive marketing, 27(4), 242-256.
Haddud, A., Dugger, J. C., & Gill, P. (2016). Exploring the impact of internal social media usage on employee engagement. Journal of social media for Organizations, 3(1), 1-23.
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review.
Hajli, M. N., & Lin, X. (2014). Developing tourism education through social media. Tourism Planning & Development, 11(4), 405e414.
Harrigan, P., Evers, U., Miles, M., & Daly, T. (2017). Customer engagement with tourism social media brands. Tourism management, 59, 597-609.
Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process analysis: Methodology in the Social Sciences. Kindle Edition, 193.
Henderson, R., & Cockburn, I. (1994). Measuring competence? Exploring firm effects in pharmaceutical research. Strategic management journal, 15(S1), 63-84.
Hua, N., &Upneja, A. (2012). Financial characteristics and outperformance: Evidence of a contemporary framework from the US lodging industry. International Journal of Contemporary Hospitality Management.
Ioncicã, M., Petrescu, E. C., Ioncicã, D., & Drãghici, M. (2007). Methods and indices of evaluation of the development and competitiveness of services in a knowledge-based society. The AMFITEATRU ECONOMIC journal, 9(22), 93-99.
Jones, N., Borgman, R., &Ulusoy, E. (2015). Impact of social media on small businesses. Journal of Small Business and Enterprise Development.
Keller, P. (2005) "Global tourism growth: A challenge for SMEs. A few thoughts by way of an introduction", Conference on global tourism growth, 6-7 September 2005, Gwangju, Korea
Ketchen Jr, D. J., Snow, C. C., & Hoover, V. L. (2004). Research on competitive dynamics: Recent accomplishments and future challenges. Journal of management, 30(6), 779-804.
Kim, A. J., & Johnson, K. K. (2016). Power of consumers using social media: Examining the influences of brand-related user-generated content on Facebook. Computers in Human Behavior, 58, 98-108.
Kim, W. G., Li, J. J., & Brymer, R. A. (2016). The impact of social media reviews on restaurant performance: The moderating role of excellence certificate. International Journal of Hospitality Management, 55, 41-51.
Kimani, E. (2015). Role of social media marketing on organisational performance in Kenya. Journal of Business and Management, 17(1), 101-105.
Kleinbaum, A. M., & Stuart, T. E. (2014). Network responsiveness: The social structural microfoundations of dynamic capabilities. Academy of Management Perspectives, 28(4), 353-367.
Koori, A. W., Muriithi, M. S., &Mbebe, M. J. (2018). Impact Of Social Media Usage On Organizational Performance Of Saccos In Kenya (A Case Study Of KUSCCO SACCO AFFLIATES). European Journal of Business and Strategic Management, 3(6), 27-51
Kyalo, J. M., Katuse, P., &Kiriri, P. (2016). Effect of Organizational Leadership on Strategy Implementation in Kenya’s Tourism Industry: Case of Kenya Government Tourism Agencies.
Lichtenthaler, U. (2009). Outbound open innovation and its effect on firm performance: examining environmental influences. R&d Management, 39(4), 317-330.
Masterson, S. S., Lewis, K., Goldman, B. M., & Taylor, M. S. (2000). Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships. Academy of Management journal, 43(4), 738-748.
McNamara, G., Vaaler, P. M., & Devers, C. (2003). Same as it ever was: the search for evidence of increasing hypercompetition. Strategic Management Journal, 24(3), 261-278.
Mutindi, U. J. M., Namusonge, G. S., &Obwogi, J. (2013). Effects of strategic management drivers on organizational performance: a survey of the hotel industry in Kenyan coast.
Nisar, T. M., & Whitehead, C. (2016). Brand interactions and social media: Enhancing user loyalty through social networking sites. Computers in Human Behavior, 62, 743-753.
Odhiambo, C. A. (2012). Social Media as a Tool of Marketing and Creating Brand Awareness, Unpublished master thesis, AMMA University of Applied Sciences, Finland.
O'shaughnessy, J. (2014). Competitive marketing (RLE marketing): A strategic approach. Routledge.
Pentina, I., Gammoh, B. S., Zhang, L., &Mallin, M. (2013). Drivers and outcomes of brand relationship quality in the context of online social networks. International Journal of Electronic Commerce, 17(3), 63-86.
Porter, M. E. (2008). Competitive advantage: Creating and sustaining superior performance. simon and schuster.
Rajabion, L., Nazari, N., Bandarchi, M., Farashiani, A., & Haddad, S. (2019). Knowledge sharing mechanisms in virtual communities: A review of the current literature and recommendations for future research. Human Systems Management, 38(4), 365-384.
Rapp, A., Beitelspacher, L. S., Grewal, D., & Hughes, D. E. (2013). Understanding social media effects across seller, retailer, and consumer interactions. Journal of the Academy of Marketing Science, 41(5), 547-566.
Spulber, D. F. (2009). Economics and management of competitive strategy. World Scientific Publishing Company.
Tarsakoo, P., &Charoensukmongkol, P. (2019). Dimensions of social media marketing capabilities and their contribution to business performance of firms in Thailand. Journal of Asia Business Studies.
Taylor, A., &Helfat, C. E. (2009). Organizational linkages for surviving technological change: Complementary assets, middle management, and ambidexterity. Organization Science, 20(4), 718-739.
Teece, D. J., Pisano, G., &Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of business research, 67(6), 1201-1208.
Vaynerchuk, G., &Vaynerchuk, G. (2011). The thank you economy (p. 256). New York: Harper Business.
Wasko, M. M., & Faraj, S. (2005). Why should I share? Examining social capital and knowledge contribution in electronic networks of practice. MIS quarterly, 35-57.
Wei, W., Hu, X., Li, Y., & Peng, P. (2015). Integrating nonmarket and market action, response, and initiating firm performance in competitive dynamics. Management Decision.
Woo, S. H., Pettit, S. J., Kwak, D. W., & Beresford, A. K. (2011). Seaport research: A structured literature review on methodological issues since the 1980s. Transportation Research Part A: Policy and Practice, 45(7), 667-685.
Yates, D., & Paquette, S. (2011). Emergency knowledge management and social media technologies: A case study of the 2010 Haitian earthquake. International journal of information management, 31(1), 6-13.
Zelga, K. (2017). The importance of competition and enterprise competitiveness. World Scientific News, 72, 301-306.
Published
2022-06-16
How to Cite
Lukose, T., & Lagat, C. (2022, June 16). Moderating Effect of Competitive Dynamics on Social Media Marketing and the Performance of Star Rate Hotels in Kenya. African Journal of Education,Science and Technology, 7(1), Pg 228-244. https://doi.org/https://doi.org/10.2022/ajest.v7i1.750
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