Generic Strategies On The Performance Of Level Four Public Hospitals In Nairobi County, Kenya

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Date

2023-09

Journal Title

Journal ISSN

Volume Title

Publisher

School of Business and Economics, Daystar University

Abstract

ABSTRACT Kenya's healthcare sector is facing a challenging and competitive market, and hospitals need to implement effective strategies to achieve sustainable performance. This study aimed to determine the influence of generic strategies on the performance of level four hospitals in Nairobi County, Kenya. To achieve this aim, the study was guided by the following research objectives: to establish the influence of cost leadership on the performance of Level Four Hospitals in Nairobi County; to evaluate the influence of differentiation strategy on the performance of Level four Hospitals in Nairobi County; and to determine the influence of focus strategy on the performance of Level Four Hospitals in Nairobi County. The study used Porter’s generic model, resource-based theory, and contingency theory to investigate the importance of generic strategies in enhancing the organizational performance of public level 4 hospitals. The study adopted a descriptive research design, while data collection was done using structured questionnaires. The collected data was analyzed using descriptive and inferential analysis using the statistical package (SPSS v. 26). The findings revealed that while all three generic strategies, cost leadership (r= 0.131, p<0.05), differentiation (r= 0.239, p< 0.05), and focus (r= 0.219, p<0.05) have a positive influence on hospital performance. However, differentiation and focus strategies have a more significant influence than cost leadership strategies, as the correlation coefficient values indicate. In addition, these results are attributed to the fact that most services and products in these hospitals are government-sponsored, with the government bearing most of the associated costs that patients would typically bear. Hence, the study recommends that integrating and implementing generic strategies in the strategic plan of public hospitals and other public institutions is essential and beneficial as this will boost these institutions' financial and operational performance.

Description

Masters Thesis

Keywords

Generic Strategies, Level Four Public Hospitals, Nairobi County, Kenya

Citation

Samuel A,. (2023, Thesis). Generic Strategies On The Performance Of Level Four Public Hospitals In Nairobi County, Kenya. School of Business and Economics, Daystar University