Nationality Diversity and Organizational Performance of Star-Rated Hotels in Coastal Region, Kenya

Abstract

This study examined influence of nationality diversity on the organizational performance of star-rated hotels in the Coastal Region. Guided by Social Identity Theory, the research used a pragmatic mixed-methods approach. The study population comprised 421 employees and 13 operational managers across 11 selected hotels in Mombasa, Kilifi and Kwale counties. A planned sample of 201 employees was selected proportionately across hotels, and 197 questionnaires were returned (98.01%); 13 operational managers were purposively selected as key informants. Descriptive statistics, Pearson correlation and simple linear regression were reported alongside interview evidence. On a four-point response scale, the unweighted average of five questionnaire-item means concerning perceived contributions of nationality diversity was 3.552. Employee-reported scores for this construct were positively associated with their organisational performance scores (r = .713, R² = .508; unadjusted F(1, 195) = 201.403, p < .001; B = 0.870). Managers described opportunities for knowledge exchange, multilingual service and adaptation to guest preferences, while acknowledging communication challenges. These associations should be interpreted cautiously: the predictor measured perceptions rather than observed nationality composition, self-report items may overlap, and the reported model does not account for within-hotel clustering. The findings identify a positive pattern of employee perceptions and suggest that inclusive intercultural practices warrant further investigation with objective diversity and hotel-performance measures.