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It is estimated that emerging economies will get over 1 billion international tourists by the year 2030. Also, strategic management researchers have severally recommended credible research in the area of strategy and structure in the hospitality industry. The purpose of this study therefore was to analyze the joint influence of differentiation strategy and firm structure on organizational performance of star rated hotels in Kenya. This study adopted positivism research philosophy and a descriptive-correlative research design. The population consisted of general managers and functional managers from Kenya’s three, four and five star rated vacation and town hotels as at 2018. Multi-stage sampling that included proportionate stratified sampling and simple random sampling was used. 267 hotel managers were sampled out of which 253 managers responded. The extent to which the hotels had adopted differentiation strategy and organic or mechanistic firm structures was measured by an analysis of the responses to the multi-item Likert scale questionnaire. Structural equation modeling was used for hypothesis testing. The study concluded that differentiation strategy and firm structure have significant joint influence on organizational performance of star rated hotels in Kenya. © 2019 Bussecon International Academy. Hosting by SSBFNET. All rights reserved. Peer review under responsibility of Bussecon International Academy & SSBFNET.

Differentiation strategy, firm structure and performance of star rated hotels