| dc.description.abstract | Digital technologies have revolutionized the way tour firms operate. Adoption of digital technologies in tour firm operations has led to minimization of marketing costs, maximization of operational efficiency and maximization of cost control. Cost leadership ensures that tour firms reduce operational costs while maintaining high quality services and therefore earn high profits compared to their competitors. This study sought to evaluate the adoption of digital technologies and their ability to foster cost leadership strategy in tour operations. The study was conducted in Nairobi City County. The study aimed to specifically; identify the extent of digital technologies adoption within tour firms in Nairobi City County, investigate the influence of mobile applications on cost leadership strategy, investigate the influence of artificial intelligence on cost leadership, examine the influence of web-based technologies on cost leadership, and analyze the challenges that inhibit the adoption of digital technologies in tour operations within Nairobi City County. Thus, the goal of the study was to investigate whether tour firms had integrated digital technologies in their operations and how the technologies had influenced cost leadership. The study was anchored on three theories; the Innovation Diffusion Theory (IDT), the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Porter’s Generic Competitive Strategies. The study used null hypothesis to test the influence of the objectives on cost leadership. The study adopted the embedded research design. The population of the study consisted of 278 tour firms from the Kenya Association of Tour Operators within Nairobi City County. The sample size of 164 tour firms was selected through systematic random sampling. 10 managers were also selected for interviews. Self – administered questionnaires were issued to tour consultants in tour firms for quantitative data collection. Interviews were conducted on tour firm managers for qualitative data collection. A five – point Likert scale was used in the questionnaires to indicate the level of agreement or disagreement with the statements. The data collected was coded using Statistical Package for Social Sciences (SPSS). Data was analyzed through descriptive and inferential statistics and presented using tables and figures. The study adopted multiple regression analysis and ANOVA tests to test the influence, hypothesis and relationship between adoption of digital technologies and cost leadership strategy. The findings inferred that adoption of digital technologies was statistically significant in predicting cost leadership in tour firms. The regression analysis results reveled that mobile applications, artificial intelligence and web-technologies had beta values of 0.802, 0.251 and -0.331 respectively while the p-values 0.000, 0.000, and 0.000 respectively. The study findings also revealed that 94.5% of cost leadership was influenced by adoption of digital technologies. The regression model reveled that changes in the adoption of digital technologies would lead to changes in cost leadership. This study therefore recommends that tour operators should fully adopt all the relevant digital technologies for their operations to ensure they attain maximum cost leadership. The study further recommends that further research should be carried out on other digital technologies such as blockchain technology. The study concludes that, adoption of digital technologies leads to cost leadership in tour firms within Nairobi City County. | en_US |
