EFFECTS OF PEOPLE-TECHNOLOGY INTERACTIONS ON SERVICE INNOVATION IN STAR RATED HOTELS IN NYERI COUNTY

Abstract

Recently hotels have incorporated technologies to enhance profitability realized through efficiency in operation, reduced cost of production and improved service quality. Developed countries have integrated people and technology in their hotel systems but there is insufficient information in many developing countries. Developing countries such as Kenya have majorly focused on the determinants of technology adoption and installation of a well-established technological system. While interaction of people and technology is reported to improve the overall operations in Kenyan hotels, research has not adequately shown their specific impacts on service innovation. The objectives of the study were to determine the effects of Employee-Hotel Information System interaction on Service innovation and to determine the effects of Customers-Social Media Interaction on Service Innovation in Nyeri County Star Rated. This study was guided by the theory of people-technology interaction. The study used descriptive cross-sectional research design while targeting 1006 customers and 335 employees derived from bed capacity and human resource data of selected star rated hotels in Nyeri County. Purposive and Convenience Sampling techniques were used to select a sample of 278 customers and 178 employees of star rated hotels in Nyeri County. Primary data was collected by the use of semi-structured questionnaires that were administered to the employees, and customers in the selected hotels. Reliability of the data was tested by use of Cronbach’s alpha at α ≥ 0.70. Data was analyzed by use of Statistical Package for Social Scientists Software (SPSS) version 25. Descriptive statistic such as percentage was incorporated. Categorical Regression and Exploratory Factor Analysis were used to test the relationship of variables. Significant levels were sought at α≤0.05. The results for Employee-Hotel Information System revealed that usage level of Electronic Point of Sale System (p=0.001) had a great influence on Service innovation in Nyeri County. The usage level of Reservation System (p=0.771), Rooms Management System (p=0.447), Mobile Device Technology (p=0.717), Biometric Technology (p=0.600) and Virtual Reality (p=0.136) had an insignificant influence on service innovation. The result for Customer-Social Media Interaction indicated that Usage of WhatsApp (p=0.001), Facebook (p=0.001) and Twitter (p=0.030) had a direct influence on service innovation. The Usage of Instagram (p=0.586), Website (p=0.124) and Email (p=0135) had insignificant effect on service innovation in Nyeri County. The study concludes that most hotel management had invested on the Facebook, WhatsApp, Twitter and Electronic Point of Sale System that led to significant contribution to service innovation. The results showed that most of the hotels in Nyeri have adopted certain level of technology for their operations and this has enabled increased service innovation in the form of timely delivery, development of more features of food and beverage products.