Do Business Environmental Factors Moderate the Relationship between Sustainable Technology and Performance? Insights from 4 and 5 Star-Rated Hotels in Kenya

Main Article Content

James M. Kamwea https://orcid.org/0009-0008-3738-8594
Rita Wairimu Nthiga https://orcid.org/0009-0003-8947-2337
Philip Kiyeng Chumo https://orcid.org/0000-0002-7796-0486

Keywords

Business environmental factors, Sustainable technology, Hotel Performance, 4 and 5 Star-Rated Hotels, Kenya

Abstract

Understanding the external environmental conditions under which sustainable technology (ST) contributes to organisational performance remains a key challenge in the hospitality industry. Although prior research has examined business environmental factors (BEF) as drivers of technology adoption, there is limited evidence about whether the factors affect the relationship between ST and hotel performance, particularly in developing-country hospitality contexts. Anchored in the Technology–Organisation–Environment (TOE) framework, this study evaluates whether BEF moderate the relationship between ST and performance of 4 and 5 star-rated hotels in Kenya. A census approach was used to collect data through a structured online questionnaire from 151 hotel general managers. Hayes’ PROCESS Model 1 was employed to test the moderating effect. The results indicated that ST positively and significantly predicts performance (B=0.389, p<0.001) with the model explaining 46% of the variance, while BEF were not a significant direct predictor of hotel performance (B=0.0745, t=1.6397, p=0.1032). Importantly, BEF had a negative but non-significant moderating effect on the ST–performance relationship (B=-0.039, t=-0.741, ΔR²=0.002, p=0.459). The findings demonstrate that BEF do not shape the strength and direction of ST’s effects on performance outcomes. The study enriches the TOE framework by demonstrating that its environmental context factors do not operate as moderators during the post-adoption phase of ST implementation. The findings inform managerial decisions and policy initiatives aimed at facilitating the complex technology and performance interplay. The study recommends that hotels place less emphasis on BEFs as determinants of performance and more as antecedents for identifying relevant ST applications. Policymakers should note that while BEF may accelerate ST integration, they do not amplify or constrain performance returns.

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