Enterprise Risk Management Strategies and Performance of ChristianBased Hospitality Businesses: An empirical overview

Abstract

This study intended to determine the relationship between Enterprise Risk Management Strategies (ERMS) as the independent variable, and performance as thedependent variable on the composite non-financial performance indicators andspecific financial indicators of Return on Assets (ROA) and Revenue per AvailableRoom (RevPar). The context of the study was the Christian-Based hospitalityBusinesses in Kenya. Three Null Hypotheses were formulated to test the relationshipsof the study variables with a significance level of p<0.05. A positivistic philosophyusing descriptive cross-sectional survey design on a population of 76 Christian-basedhospitality businesses in Kenya was adopted. The results of the study show that theNull Hypotheses 1 (Ho), on the effect of ERMS on composite performance wasrejected while hypotheses (Ho1(a)1(b)), (Ho), which tested the relationship betweenERMS and ROA and RevPar respectively were accepted. This concludes that ERMShave a significant relationship with composite performance while ERMS have nosignificant relationship with the financial indicators of ROA and RevPar. Thediagnostic tests showed normal autocorrelation between study variables with DW testranging between 1.5 and 2.5; Normality test showed normal distribution of studyvariables; homoscedasticity exists for all hypothesis while collinearity can be seen inhypothesis (Ho1(a)), (Ho1(b)) and (Ho).  1(c)1(c)