The Moderating Effect of Environmental Dynamism on the Relationship Between Cyber Security and Sustainable Performance of SMEs in the Tourism Sector in Nairobi, Kenya
Main Article Content
Keywords
Cybersecurity, sustainable performance, environmental dynamism, SMEs, tourism sector, Nairobi, Kenya
Abstract
In the tourism sector, Small and Medium Enterprises (SMEs) are increasingly confronted by sophisticated cyber risks while navigating highly unpredictable market conditions. Implementing robust cybersecurity measures is essential for safeguarding digital infrastructure, preserving the confidence of stakeholders, and ensuring the long-term viability of the business. Nevertheless, the degree to which these security investments contribute to organizational sustainability is often shaped by environmental dynamism, characterized by rapid technological advancements, shifting legal frameworks and market instability. This study examined the moderating effect of environmental dynamism on the relationship between cybersecurity and sustainable performance among tourism SMEs in Nairobi, Kenya. An explanatory research design was adopted, utilizing a quantitative approach to analyze the variables. The target population comprised 1,200 managers from 120 licensed tourism firms in Nairobi, from which a sample of 300 respondents was selected using the Taro Yamane formula and stratified sampling. Primary data was collected through a structured 5-point Likert scale questionnaire, and the reliability of the instrument was confirmed using Cronbach’s Alpha (α≥0.7). Data was analyzed using descriptive statistics and inferential techniques, specifically multiple linear regression and hierarchical moderation analysis, processed via SPSS version 25. The study found that SMEs in Nairobi’s tourism sector moderately implemented cybersecurity measures, with descriptive mean scores ranging from 3.06 to 3.16 across key indicators. Pearson correlation analysis showed a positive and significant relationship between cybersecurity and sustainable performance (r = 0.492, p < 0.01), while environmental dynamism was also positively correlated with sustainable performance (r = 0.235, p < 0.05). Regression analysis confirmed that cybersecurity significantly predicted sustainable performance (β = 0.492, p < 0.01) and environmental dynamism strengthened this effect as a moderating variable (β = 0.235, p < 0.05), indicating that firms operating in more dynamic environments benefited more from robust cybersecurity practices. The study concludes that cybersecurity is a key driver of sustainable performance in tourism SMEs, particularly in volatile business. It recommends that managers adopt comprehensive cybersecurity strategies, conduct regular risk assessments, and provide continuous employee training. Policymakers should support SMEs by providing digital infrastructure, regulatory guidance, and incentives to promote cybersecurity adoption and enhance long-term sustainability.
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Fazla Mongely David , Department of Management Science and Entrepreneurship, School of Business and Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Department of Management Science and Entrepreneurship, School of Business and Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Molly Awino, Department of Management Science and Entrepreneurship, School of Business and Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Department of Management Science and Entrepreneurship, School of Business and Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Felishana Cherop, Department of Management Science and Entrepreneurship, School of Business and Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Department of Management Science and Entrepreneurship, School of Business and Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya