Thesis:

Enterprise resource planning system integration and the performance of four-star hotels in Mombasa county, Kenya

This study examined the impact of Enterprise Resource Planning (ERP) system integration on the performance of four-star hotels in Mombasa County. Specifically, it aimed to determine how ERP driven knowledge management, top management support, staff training, and communication efficiency affect hotel performance. The research was based on the Theory of Constraints, Resource-Based Theory, Deming’s Theory of Quality Management, and the Technology Organization-Environment (TOE) Framework. A descriptive research design was used, combining both qualitative and quantitative methods. The target population included 140 respondents, such as senior and junior management, technical staff, hotel employees, and customers. The unit of observation was each respondent, while the unit of analysis was the four-star hotels themselves. Cluster sampling was employed, with each hotel representing a cluster. Data were gathered through structured and unstructured questionnaires, supplemented with non-participant observation and case study techniques. A pilot study involving ten participants from four-star hotels in Kilifi County was conducted to refine the research tools. Quantitative data were analyzed using SPSS version 28, while qualitative responses were quantified for interpretation. The findings provided insights into how ERP integration influences hotel performance, operational efficiency, and service quality. Results indicated that ERP system integration positively impacts the performance of four-star hotels in Mombasa County by improving service quality consistency, operational efficiency, and customer satisfaction. ERP-facilitated knowledge management enhanced access to real-time information and decision-making, though some optimization gaps persisted. Top management support significantly aided ERP implementation through resource allocation and strategic alignment, although some departments lacked consistent advocacy. Staff training proved crucial, with well-structured sessions improving ERP utilization and performance. ERP communication enhanced interdepartmental coordination and information flow, despite occasional technical issues. Inferential statistics showed strong positive correlations between performance and ERP system integration (r = 0.701), knowledge management (r = 0.689), top management support (r = 0.722), staff training (r = 0.734), and communication (r = 0.707). Multiple regression analysis resulted in an R² value of 0.653, indicating that 65.3% of the variance in hotel performance was explained by the five independent variables. The study recommends targeted actions for key stakeholders to improve ERP-driven performance in four-star hotels. Hotel IT departments should collaborate with ERP vendors to enhance knowledge management features. Hotel executives must establish ERP governance for better leadership and resource allocation. HR departments, working with ERP consultants, should implement ongoing, role-based training. Finally, operations managers and ICT teams need to strengthen ERP communication tools and infrastructure to ensure consistent interdepartmental coordination and service delivery. In conclusion, the study underscores the multifaceted benefits of ERP systems, supported by effective knowledge management, strong top management backing, and comprehensive staff training, in significantly enhancing the overall performance of four-star hotels in Mombasa County.