The Moderating Effect of Hotel Size on the Relationship Between Energy Efficiency Practices and Hotel Performance: Evidence from 3- to 5-Star Hotels in Kisumu County, Kenya
Main Article Content
Keywords
Energy efficiency practices, Hotel performance, Hotel size, Kisumu County, Kenya, Resource-Based View (RBV), Contingency Theory
Abstract
As the hospitality sector in Kisumu County expands, adopting energy efficiency practices (EEPs) has become vital for reducing high operational costs and driving sustainable hotel performance. Smaller properties frequently face capital constraints and limited economies of scale that larger establishments seamlessly leverage. Consequently, it remains uncertain whether hotel size significantly moderates the translation of energy efficiency investments into improved performance among 3- to 5-star hotels in Western Kenya. The study therefore examines the effect of energy efficiency practices on hotel performance and the moderating role of hotel size among 3- to 5-star rated hotels in Kisumu County, Kenya. Grounded in the Natural-Resource-Based View and Contingency Theory, an explanatory research design was adopted. Data were collected from 203 hotel managers, departmental managers, and supervisors using a structured questionnaire and analyzed through hierarchical moderated regression. The findings reveal that energy efficiency practices exert a significant positive effect on hotel performance (β = 0.188, p < .01), supporting the proposition that environmentally oriented capabilities generate competitive advantage. More importantly, hotel size significantly moderates this relationship (β = −0.167, p < .01) the positive effect of energy efficiency on performance weakens as hotel size increases, indicating that smaller hotels derive proportionally greater performance benefits from identical efficiency investments. The study extends the empirical base of the Natural-Resource-Based View to an emerging African market and integrates Contingency Theory to demonstrate that sustainability returns are not invariant but are structurally contingent on organizational scale. For practitioners, the results validate targeted energy efficiency strategies for small and medium-sized properties, while policymakers are encouraged to design size-differentiated incentives that maximize sector-wide performance gains.
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References
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Kuo, F. I., Fang, W. T., & LePage, B. A. (2022). Proactive environmental strategies in the hotel industry: Eco-innovation, green competitive advantage, and green core competence. Journal of Sustainable Tourism, 30(6), 1240–1261. https://doi.org/10.1080/09669582.2021.1931254
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Molina-Azorín, J. F., Pereira-Moliner, J., López-Gamero, M. D., & Tarí, J. J. (2019). Green practices in hospitality: A contingency approach. Sustainability, 11(13), 3737. https://doi.org/10.3390/su11133737
Murimi, M. (2020). Determinants of green management practices in hotels in Kisumu city, Kenya: A theoretical framework. https://doi.org/10.47672/jsm.531
Murimi, M., Wadongo, B., & Olielo, T. (2021). Determinants of revenue management practices and their impacts on the financial performance of hotels in Kenya: A proposed theoretical framework. Future Business Journal, 7, 1–7. https://doi.org/10.1186/s43093-020-00050-9
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Nisar, Q. A., Haider, S., Ali, F., Jamshed, S., Ryu, K., & Gill, S. S. (2021). Green human resource management practices and environmental performance in Malaysian green hotels: The role of green intellectual capital and pro-environmental behavior. Journal of Cleaner Production, 311, 127504. https://doi.org/10.1016/j.jclepro.2021.127504
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Management, 4(2), 59–77. https://doi.org/10.18485/ijdrm.2022.4.2.4
Ogola, N., Musau, P., & Wekesa, C. (2023). Assessment of the implementation of energy conservation opportunities arising from energy audits: A study of four-star and five-star hotels in Nairobi, Kenya. Journal of Power and Energy Engineering, 11(9), 15–44. https://doi.org/10.4236/jpee.2023.119002
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Oke, O. E., Akinkunmi, O. O., & Etebefia, S. O. (2019). Use of correlation, tolerance and variance inflation factor for multicollinearity test. GSJ, 7(5), 652–659.
Okumus, F., Köseoglu, M. A., Chan, E., Hon, A. H. Y., & Avci, U. (2019). How do hotel employees' environmental attitudes and intentions to implement green practices relate to their ecological behavior? Journal of Hospitality and Tourism Management, 39, 193–200. https://doi.org/10.1016/j.jhtm.2019.04.008
Osiako, J. T., & Szente, V. (2021). Sustainable tourism development and eco-friendly practices: A study of hotels in Nairobi County, Kenya. African Journal of Hospitality, Tourism and Leisure, 10(2), 498–512. https://doi.org/10.46222/ajhtl.19770720-154
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Published
Sep 25, 2026
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How to Cite
Wakhungu , E. K., Sempele , C., & Barsulai , S. (2026). The Moderating Effect of Hotel Size on the Relationship Between Energy Efficiency Practices and Hotel Performance: Evidence from 3- to 5-Star Hotels in Kisumu County, Kenya. Journal of Frontiers in Humanities and Social Sciences, 4(3), 113–135. https://doi.org/10.69897/jofhscs.v4i3.409
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Author Biographies
Ebby Kadii Wakhungu , School of Business and Management Sciences, Department of Hotel and Hospitality Management, University of Eldoret, P.O. Box 1125-30100, Eldoret, Kenya
School of Business and Management Sciences,
Department of Hotel and Hospitality Management, University of Eldoret,
P.O. Box 1125-30100, Eldoret, Kenya
Catherine Sempele , School of Business and Management Sciences, Department of Hotel and Hospitality Management, University of Eldoret, P.O. Box 1125-30100, Eldoret, Kenya
School of Business and Management Sciences,
Department of Hotel and Hospitality Management, University of Eldoret,
P.O. Box 1125-30100, Eldoret, Kenya
Stella Barsulai , School of Business and Management Sciences, Department of Hotel and Hospitality Management, University of Eldoret, P.O. Box 1125-30100, Eldoret, Kenya
School of Business and Management Sciences,
Department of Hotel and Hospitality Management, University of Eldoret,
P.O. Box 1125-30100, Eldoret, Kenya