The Moderating Role of Legal Ownership on Market Innovation Management and the Performance of Micro, Small and Medium Hotels in Nairobi

Abstract

This paper seeks to investigate whether legal ownership has a moderating role on market innovation management and firm performance. According to Pofeldt (2015), non - employer firms (NEF’s) that are owned by one person generally don’t augur very well. However most of the micro owned non - employer firms have in recent years been found to be highly lucrative. The businesses under scrutiny were sole proprietorships, but a small percentage belong ed to the partnership and corporation categories. The reason for this is the internet which has enabled entrepreneurs to access vast global markets quickly and cheaply. Decker et al (2014) are of the point of view that sole owned firms are more dynamic tha n employing firms are and often grow to become the large enterprises of today (Stephanie & Ellie 2014). According to Burton (2001); Cantells (2003); Malone 2004 and Zubiff & Maxmin (2004), employment trends such as job insecurity, our sourcing and tempor ary employment have played a major role in the popularity of non - employment firms. Grabher (2004) and Guile (2012) point out that mobile technology has majorly contributed to the increasing growth of NEF’s. (Spinuzzi 2014). Scholars show mixed dispositions on legal ownership. Some point out that individual owned firm perform better than grouped owned firms; Other scholars argue differently saying that availability of resources may enhance group owned firms innovation ability. Yet another school of thought i s of the view that ownership has no effect on firm performance (La Porta et al 2000). Various studies have been undertaken to look into challenges that entrepreneurs face but very few check on the moderation role that legal ownership has on the relationshi p of such factors and business performance. This study, aims at filling this gap in research. It looks at the moderating role of legal ownership on the relationship of market innovation management and the performance of MSME hotels in Nairobi, Kenya.