Evaluation of the factors affecting organisational non-financial performance: a case of Airbnb listings in Nairobi County

Abstract

This study aimed to evaluate the factors affecting the performance of Airbnb listings in Nairobi, Kenya. The rise of platforms like Airbnb has transformed the hospitality industry, offering an alternative to hotels. While advantageous, Airbnb’s model challenges hosts to ensure optimal organisational performance. This is vital for competitiveness and stable income. Existing research on factors affecting Airbnb listings’ performance mostly covers developed markets, creating a gap for emerging markets like Kenya. This gap hampers local Airbnb listings from a lack of insights to enhance their operations, risking revenue loss. The specific objectives of the study were to establish the influence of technological factors on the organisational performance of Airbnb listings in Nairobi, Kenya, to establish the influence of location factors on the organisational performance of Airbnb listings in Nairobi, Kenya, and to establish the influence of economic factors on the organisational performance of Airbnb listings in Nairobi, Kenya. Two theories informed this research: the social exchange theory and the balanced scorecard theory. Using the positivism research philosophy, a descriptive design, and a quantitative approach to primary data collection, the study population was users of Airbnb in Nairobi. Data was collected from this sample using a survey strategy. The sample was selected using the judgment sampling technique. The findings indicate that technology factors, location factors, and economic factor are positive and statistically significant predictors of organisational performance of Airbnb listings in Nairobi, Kenya. The study has emphasised the importance of technology, highlighting the positive effects of service automation, innovation, and user-friendly interfaces on customer satisfaction and organisational performance in Nairobi’s Airbnb listings. A listing’s location factors, from the neighbourhood, accessibility of transit facilities, amenities, proximity to places of interest, and the environment around the apartment have all been shown to significantly and positively affect the organisation performance of Nairobi Airbnb listings. This study has also concluded that economic factors such as competitive prices and perceived value are critical in increasing customer satisfaction, motivation to use, and repurchase intention. This study emphasises the importance of hosts strategically leveraging technology, selecting appropriate locations, and taking economic factors into account for optimising Airbnb listings’ operations and maximizing organisational performance in emerging markets such as Kenya.

Keywords: Airbnb, Airbnb listings, economic factors, location factors, peer-to-peer accommodation, sharing economy, technology factors