Analysis of Internal Corporate Social Responsibility Strategies on Organizational Commitment in Five Star Hotels in Kenya

Abstract

In Kenya, five star hotels lead in employees’ turnover within the hotel industry at 68% as compared to other establishments. Turnover has great impact on contribution to the national economy and performance of the hotels. The purpose of this study was to analyse the influence of internal corporate social responsibility strategies on organizational commitment in five star hotels in Kenya. The research objectives were: to assess the influence of shareholder strategy on organizational commitment in five star hotels in Kenya; to evaluate the influence of reciprocal strategy on organizational commitment in five star hotels in Kenya; to establish the influence of altruistic strategy on organizational commitment in five star hotels in Kenya; to assess the influence of citizenship strategy on organizational commitment in five star hotels in Kenya; and to examine the effect of employee demographic features as moderating variable on the relationship between internal corporate social responsibility strategies and organizational commitment in five star hotels in Kenya. This study was anchored on Resource-Based Theory, Social Exchange Theory and Social Identity Theory. The study adopted descriptive research design with cross-sectional approach to examine the study variables. The target population was 216; Operations and Line managers in five star hotels in Kenya. A total sample of 144 managers were selected for the study and a self-administered questionnaire was used for data collection. A pilot testing for reliability of the questionnaire was conducted testing with Cronbach Alpha of 0.7 and above, while content and construct validity of the questionnaire was discussed with peers and application of Kaiser-Meyer-Olkin score greater than 0.5 respectively. The pilot data did not form part of the main study data. Actual field data was subjected to descriptive and inferential statistical analysis. The findings revealed that the independent variables used in this study (Shareholder Strategy, Reciprocal Strategy, Altruistic Strategy, Citizenship Strategy) had positive and statistically significant influence and were able to jointly explain 74.2% of the variations in Organizational Commitment in five star hotels in Kenya. The shareholder strategy was found leading among the other internal corporate social responsibility strategies with coefficient (β=0.371, P<0.05), compared to reciprocal strategy (β=0.164, P<0.05), altruistic strategy (β=0.206, P<0.05), and citizenship strategy (β=0.120, P<0.05, indicating the importance of shareholder strategy over the other strategies in achieving organizational commitment. Similarly, employee’s demographic features have statistically significant moderating effect on the relationship between internal corporate social responsibility strategies and organizational commitment in five star hotels in Kenya. The study concluded that internal corporate social responsibility strategies provide concrete foundation in ensuring employee retention through commitment. The study recommends to the managements of five star hotels in Kenya, Federation of Kenya Employers and Kenya Association of Hotelkeepers & Caterers that they should strive in implementing internal corporate social responsibility strategies because hotels with good internal corporate social responsibility strategies can better attract, motivate, and retain workers. The study suggests further studies on relations between internal corporate social responsibility strategies and organizational commitment with firm age as moderating variable and in similar or different context and research approach.