Abstract:
To the hospitality industry, the Coronavirus Disease 2019 pandemic increased danger
from multiple angles, placing the crucial goal of sustainability at a crossroads.
Consequently, value proposition gained traction for hospitality businesses functioning
in the unfamiliar business environment. Restaurants quickly adopted value proposition
innovations, which promised to provide value that is inclusive of all stakeholders. It
was crucial to understand the effects of value proposition innovations and sustainability
in maintaining and promoting successful innovation. Consequently, there was need to
explored effects of value proposition innovations, on restaurant sustainability in Nairobi
County. The main theoretical underpinning of the study was Schumpeter's innovation
theory. The study used descriptive research design using Likert scale rating to explain
the relationships between variables. The unit of analysis was 81 full-service restaurants
within 54 classified hotels in Nairobi County, where the unit of observation was the
restaurant managers. Self-administered questionnaire achieved 70% response rate (57
respondents). Data was analysed using SPSS version 25 and findings presented using
descriptive and inferential statistics. The study divulged value proposition innovations
and sustainability had a positive and significant relationship. The Pearson correlation
coefficient was moderate as r=0.364, at p = 0.05 level of significance additionally, the
Coefficient of Determination (R Square) established that value proposition innovations
predicted 11.6% of the variance in sustainability. The findings indicate, a unit of change
in value proposition innovations translates in an increase of 0.640 units in sustainability.
The finding show that majority of the restaurants introduced new strategies to retain
customers and to reach new customer segments, with some introducing new services.
The study recommends the formulation of strategies and policies, for instance
whitepapers to educate hospitality management on the importance of value
proposition innovations for sustainability. For practice, the study recommends
restaurants constantly evaluate and redefine their offering in terms of value proposition
especially during crises when business survival is critical. Additionally, restaurants ought
to think of creative, practical, and efficient distribution channels.
