Entrepreneurial Mindset and Innovation by 1-3 Star Rated Hotels in Kenya

Purpose: The study aimed to assess the effect of entrepreneurial mindset on innovation by 1-3 star rated hotels in Kenya. Methodology: This study considered positivism philosophy, quantitative measurement paradigm. The study targeted 111 hotels (1-3 star rated) through census, of which 3 respondents per hotel (CEO, Finance manager and Operations manager) were considered, from the hotels' list provided by the Kenya Tourism Regulatory Authority (TRA). A cross sectional survey was conducted where the self-administered questionnaire was used. Both the reliability and validity tests were done before the data analysis. The collected data was analyzed using descriptive and inferential statistics with the help of Excel and SPSS version 25.0. The hypotheses were presented and tested using multiple analysis and accepted at 95 percent confidence level. Results: The findings revealed that entrepreneurial mindset and hotel innovation by 1-3 star rated hotels in Kenya are positively and significantly related (β=0.590, p=0.020). This led to the rejection of the null hypothesis that; the effect of entrepreneurial mindset on innovation by 1-3 star rated hotels in Kenya is not statistically significant. Specifically, the study concludes that 1-3 star rated hotels in Kenya have strived to improve their innovative ability since they have shown consistency in seeking information on new business ideas in the hotel sector; access of information on new business ideas in the hotel sector; identifying and choosing most promising business opportunities and execution of the most promising business opportunity. In addition, the managers view changes in the hotel sector as precursors for new business opportunities implying the resilient entrepreneurial mindset. Unique contribution to theory, policy and practice: Based on the study findings, the study also recommends the hotel entrepreneurs to be proactive in seeking new product ideas and customer product information which will in turn enable them create ideas on coming up with innovative products.