Effect of Management Practices on Actual ICT Application in Kenyan Hotels: A PLS-SEM Approach

Advances in information communication technology (ICT) has seen many hotels invest huge sums of money in ICTs to enhance their performance. However, this has never been the case for most hotels in economically developing countries due to poor ICT implementation. This study sought to establish how ICT-related management practices influence actual ICT application by hotels in Kenya. A total of 194 hotel managers drawn from 36 hotels were surveyed. The data collected was analyzed quantitatively. The outcomes show that though operational management and human resource management practices significantly predict actual ICT application, HRM practices have the biggest effect in explaining the variance in actual ICT application. The study finding offer insights to best management practices and how they influence actual ICT use in hotels.     

Stock liquidity and director compensation

This study investigates how stock liquidity affects the compensation incentives faced by the directors on the board. The results show that the proportion of cash-based compensation in the directors' compensation package increases when the firm's shares are less liquid: a one standard deviation increase in the bid-ask spread from the mean is associated with a 3% larger fraction of cash in the directors' compensation package. The effect is more pronounced for firms whose management does not issue Earnings Per Share (EPS) guidance and for firms whose Chief Executive Officers (CEOs) themselves have higher pay in cash and lower pay in the form of equity. These results suggest the compensation incentives offered to directors in firms with illiquid shares result in the interests of shareholders being less aligned with those of the directors compared with firms with liquid shares.