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The purpose of this paper is to develop a theoretical framework that explains how performance management (PM) affects the organisational effectiveness in the third sector.

The authors adopt a two stage process in developing the theoretical framework; a systematic review of literature and theoretical developments of the framework. The underlying principles for developing the theoretical framework are mainly based on prior theoretical justification and empirical research in management accounting and international development fields.

Drawing upon contingency theory, the authors propose a theoretical framework explaining how the contingency variables affect PM and organisational effectiveness in the third sector. The authors discuss the justification for contingency theory as well as its weaknesses in the PM research. The authors also highlight how a modified Performance Management and Control Framework could be used to identify PM practices in the third sector. The organisational effectiveness can be measured using the four domains the authors suggest in this paper. Finally the authors put forward propositions that can be empirically tested in future studies.

This conceptual paper opens an opportunity for future empirical research to cross-validate the model in a large survey through confirmatory factor analysis and structural equation modelling.

This paper helps researchers and practitioners to understand how modern PM tools integrate with third sector characteristics to optimise the effectiveness of individual organisations.

Integrating insights across disciplines, this paper strengthens cumulative knowledge on conceptualisation of PM and effectiveness within the third sector.

The purpose of this paper is to identify emerging critical generic managerial competencies in the Kenyan hotel industry.

A cross‐sectional survey research design was used to gather primary data using self‐administered questionnaires. The population was composed of hospitality managers from ten five‐star hotels in Nairobi and Mombasa, Kenya. A sample of 160 hospitality managers was selected proportionately by simple random sample method.

Several critical generic management competencies are emerging in the Kenyan hospitality industry. However, there is a gap between utilization and importance of managerial competencies in Kenya. Managers do not value human relations competencies.

Hotels and training institutions need to enhance acquisition of generic managerial competencies in their management development programs and curricula, respectively.

The paper focuses on both the level of utilization of managerial competencies and the level of importance attached to managerial competencies. It contributes to a new body of knowledge in management literature in Kenya. The paper has value to researchers, hospitality graduates and students, hospitality educators and human resource managers in Kenya.

The overall purpose of this study is to investigate impact of managerial characteristics on key performance indicators in the Kenyan hotel industry.

A cross‐sectional survey research design was used to gather primary data using self‐administered questionnaires. A sample of 160 hospitality managers was selected proportionately by simple random sample method from six hotels in Nairobi and Mombasa. A custom factorial univariate analysis of variance was used to analyze the data.

Hospitality managers in Kenya are still focusing on financial and result measures of performance while ignoring non‐financial and determinant measures. Managerial demographic characteristics; age, education, current position, functional area, and performance appraisal influence managers' choice of key performance indicators.

The model violated assumptions of homogeneity of variances. Literature review revealed a severe lack of Kenyan‐based research in tourism and hospitality industries on performance measurement practices hence the need for future research in this area.

The hotels need to invest in comprehensive performance management systems suitable for Kenyan hospitality industry that will incorporate both financial and non‐financial performance measures.

The study focuses on level of use of performance indicators and level of importance attached to performance indicators in the Kenyan hospitality industry. Managerial demographic characteristics influence on key performance indicators are examined in leading service industry in a growing economy thus contributing to a new body of knowledge in management literature in Africa.