INFLUENCE OF TECHNOLOGY AND INNOVATION ON PERFORMANCE OF BAR AND RESTAURANT BUSINESSES IN NAIROBI COUNTY, KENYA DURING COVID-19 CRISIS

Abstract

The recent Covid-19 crisis has wreaked havoc on the performance of businesses in the whole world. The most hit is the hospitality industry, especially the bar & restaurant businesses, which are considered high human density areas. This study sought to examine the influence of technology & innovation as a survival strategy on the performance of bars & restaurants in Nairobi County, Kenya, in the face of the Covid-19 pandemic. The study was based on diffusion of innovation theory and business resilience theory. The population under study was a total of 6,383 licensed bar & restaurant businesses in Nairobi County. The study adopted a survey design and a sample of 100 dive bars & restaurants that was representative of the whole population was selected. The data were analyzed using descriptive statistics and multiple linear regression models and used textual explanation, and charts to present the results. The study achieved a response rate of 89%, which was sufficient for generalization. The study found that the crisis had a major negative impact on profitability, staff reputation, supplier relationship, compliance and public reputation. It also noted that there was a loss of jobs and revenue from the establishments due to the crisis. The study noted that technology & innovation had a significant negative influence on business performance when adopted during a crisis. The study recommended that the government consider allocating a stimulus package to cushion businesses during the crisis as the finding noted the loss of revenue and massive job losses in the sector. Secondly, the government and investors should have a general crisis management policy for bar & restaurant businesses during the crisis as the study noted that performance was affected negatively attributable to non-preparedness or lack of policy. The study further recommended that the investors adopt mission-critical strategies earlier in their business cycle as opposed to adopting them only during a crisis, as the study noted that adopting rush strategies does not yield any positive influence on the performance. For the scholars, the study also recommended a further exploratory study on more factors influencing the performance of bar & restaurant businesses during crisis so that the subsequent studies will have an exhaustive list of strategies to examine. JEL: L10; L20; J10  Article visualizations: