Effects of Employee-Hotel Information System Interaction Rate on Service Innovation Levels in Star-Rated Hotels in Nyeri County, Kenya

Developed countries have integrated people and technology into their hotel systems, but many developing countries lack sufficient information on this integration. Developing countries like Kenya have mainly focused on the determinants of technology adoption and installing well-established technological systems. While the interaction between people and technology is reported to improve overall operations in Kenyan hotels, research has not adequately shown their specific impacts on service innovation. The study's objective was to determine the effects of Employee-Hotel Information System interaction on service innovation in Nyeri County Star-Rated Hotels. The theory of people-technology interaction guided this study. A descriptive cross-sectional research design was used, targeting 335 employees from the human resource data. Purposive and convenience sampling techniques selected a sample of 178 employees. Primary data was collected using closed-ended questionnaires administered to employees. The data’s reliability was tested with Cronbach’s alpha at α ≥ 0.70. Data analysis was conducted using SPSS version 25, incorporating descriptive statistics such as percentages. Categorical regression and exploratory factor analysis were used to quantify the variables for precise estimates and to test their relationships. Significance levels were set at α ≤ 0.05. Results indicated that the usage of the Electronic Point of Sale System (p=0.001) greatly influenced service innovation in Nyeri County. Conversely, the usage of the Reservation System (p=0.771), Rooms Management System (p=0.447), Mobile Device Technology (p=0.717), Biometric Technology (p=0.600), and Virtual Reality (p=0.136) had an insignificant impact. The study concludes that most hotel managements had invested in the Electronic Point of Sale System, which significantly contributed to service innovation. The findings demonstrate that hotels in Nyeri have adopted a certain level of technology for their operations, leading to increased service innovation, such as timely delivery and the development of additional features for food and beverage products.