Effect of strategic orientation on performance of star-rated hotels in Ghana

Abstract

The study used the resource dependency theory to determine the strategic orientation that star rated hotels in Ghana should adopt to realize both financial and non-financial performance. Out of a population of 680 star-rated hotel managers, a sample of 248 were chosen, using the stratified random sampling technique. Self-administered questionnaires were used to solicit the views of managers of the selected star-rated hotels. In all, a total of 178 responses were retrieved and analyzed, using descriptive and partial least squares in structural equation modeling. Findings of the study indicate that none of the strategic orientation types influenced financial performance. However, aggressiveness, analytic, defensiveness, futuristic and riskiness were found to rather influence non-financial performance of star-rated hotels. The study, therefore, confirms the resource dependency theory and concludes that when star-rated hotels tend to be aggressive, analytic, futuristic and risky, it influences non-financial performance. The study, therefore, recommends that managers of star-rated hotels use analytic, defensiveness, futuristic and riskiness strategic orientation to enhance non-financial performance