Assessment of Shareholder Strategy – An Internal Corporate Social Responsibility Perspective on Organizational Commitment in Five-Star Hotels in Kenya

Abstract

In Kenya, Five-Star hotels are leading in employees’ turnover within the hotel industry at 68%. This surpasses the healthy turnover range (0-15%) and affect organizational performance through the high cost incurred to replace experienced workers.  Workers’ commitment in an organization plays a vital role in addressing turnover intentions. The objective of this study was to assess the influence of shareholder strategy on organizational commitment in five-star hotels in Kenya. The study applied descriptive research design, cross-sectional approach and quantitative method to examine the study variables. A total of 216 hotel managers in five-star hotels in Kenya was the target population of the study, out of this, 144 hotel managers were selected as sample size in 2021. A self-administered questionnaire was used to collect data and a response rate of 86.8% was obtained. The study applied both descriptive and inferential statistical approaches to analyze data with tabulation, figures and narrative output presentation. The study found that Shareholder Strategy has statistically significant and positive effect and explains 53.1% variation of the Organizational Commitment in Five-Star hotels in Kenya. Empowering the workers with ability for decision-making, problem solving, and planning activities fosters loyalty and commitment which drastically reduces turnover intentions. The study recommends to the hotel management and Kenya Association of Hotelkeepers & Caterers to strive to formulate and implement CSR embedded Shareholder Strategy for raising workers’ Commitment with the aim to attract, motivate, and retain workers. The study suggests replication of the study in the same or other sectors to develop further the Internal CSR field.