Influence of Strategic Alignment Practices on Project Selection Performance of Hotels in Nakuru Town, Kenya

Abstract

Project selection is vital phase in the project management cycle. At this phase, stakeholders evaluate each project idea and select projects of highest priority. Theory suggests that the best way to optimize project selection performance is to align this process with the company's strategy. The aim of current study was to examine the extent to which strategic alignment practices influence project selection performance of hotels in Nakuru town. Specifically, the study sought to examine the influence of objective alignment practices, core value alignment practices, and capability alignment practices on project selection performance of hotel establishments within Nakuru town. The study utilized the descripto-explanatory research design where cross-sectional data was collected from a sample of 73 participants using structured questionnaires. The sample was drawn from a population of 86 mid-level managers from eight star-rated hotels located within Nakuru Central Business District using proportionate stratification technique. The resultant data was analyzed using both descriptive statistics and regression technique. Results showed that objective alignment practices (p=0.00 and Beta= 0.611), core value alignment (p=0.001 and Beta=0.411) and capability alignment practices (p=0.00 and Beta= 0.465) have significant and positive influence on project selection performance. However, regulatory practices were found to have no significant moderating effect on the relationship between strategic alignment practices and project selection performance. The research recommended that hotels should adopt portfolio model of selecting and managing projects, and create project management offices as ways for promoting better alignment between project selection processes and organizational strategies.