Factors affecting the adoption of competitive strategies by private healthcare facilities in Nairobi, Kenya
Date
2024
Authors
Waitimu, F.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The healthcare industry is undergoing radical changes regarding applying new technologies and business models, complying with recent reforms and regulations, meeting the needs of the changing demographics, emerging diseases and social and economic trends. The democratization of healthcare has allowed various local and foreign players to enter this field, leading to the emergence of different private health organizations. To keep ahead, healthcare management has generated new competitive advantages to stay ahead. This study examined the characteristics that led Kenyan private healthcare facilities to adopt a certain competitive strategy. Resource Based theory inspired the research, while the Bowman's Strategy Clock was used to evaluate the competitive strategy adopted. The research examined how organizational and top management team variables impacted the competitive strategy adopted by the institutions. This descriptive quantitative research study employed survey questionnaires as the data collection tool. A stratified random sample was used to represent the population and minority groups. The data collected was then analysed using the SPSS model version 24. The study illustrated that the size of the organization, the financial capability and resource allocation, scope of operations, the top management teams’ decision-making process and entrepreneurial flair had a significant effect on the competitive strategies that were adopted by the private healthcare institutions within Nairobi County. With respect to strategy, results confirmed that the hybrid strategy on the Bowman’s Strategy Clock was the preferable strategy adopted by most private healthcare institutions in the region. Furthermore, the study recommended that private hospitals should optimize resource allocation, have corporate ownership or a board of directors to help with strategic decisions, improve their financial capabilities by seeking out new financing opportunities or foster strategic partnerships in order to stay ahead of their competitors. This research study added to the body of knowledge in strategic management and is beneficial to healthcare managers, entrepreneurs in the health sector, as well as policy makers.
Keywords: Competition, strategy, health sector, private hospitals
Description
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