Strategic Leadership Practices and Performance of Private Kenyan Hospitals: A Case of Oasis Health Group Limited

Abstract

Strategic leadership practices play a pivotal role in enhancing organizational performance in the complex and ever-evolving healthcare sector. This study bridged contextual, conceptual, and methodological gaps by investigating strategic leadership practices and performance in private Kenyan hospitals. The study aimed at assessing the extent of implementation of strategic leadership practices, analyze organizational performance, and investigate their relationship, using Oasis Health Group Limited as a case study. Transformational Leadership, Balanced Scorecard, and Upper Echelon Theories formed a solid theoretical framework guiding the analysis of the of strategic leadership practices on the performance of private Kenyan hospitals. The Upper Echelons Theory anchored the study. The study adopted a descriptive research design. The population of study was the 103 private hospitals in Kenya, with Oasis Health Group Limited 220 employees as the target population. The sample size for the study was 140 respondents. Stratified sampling ensured representation of key characteristics by selecting samples from each stratum, given the varied sizes, specialties, and structures of OGHL branches. Data was collected through the administration of questionnaires and interview guides. The study used descriptive statistics, such as mean and standard deviation, and frequency distribution tables for quantitative data analysis. Qualitative data were analyzed using open coding and thematic content analysis for interview responses. The study found a strong correlation between strategic leadership practices (strategic direction, innovation, human capital development, and strategic control) and organizational performance at Oasis Health Group Limited, characterized by consistent revenue growth, cost reduction, customer satisfaction, and employee satisfaction over the past five years. The findings indicate that approximately 67% of the variance in the performance of Oasis Health Group Limited can be explained by strategic leadership practices, with the regression model being statistically significant (F-calculated = 36.268 > F-critical = 2.45, p = 0.000 < 0.05), meaning that the predictors significantly explain the variation in performance. The study recommends that Oasis Health Group Limited should invest more in innovation by adopting new technologies, fostering employee creativity, and regularly training staff on healthcare innovations. The organisation should also strengthen its human capital development through continuous professional development, competitive compensation, and supportive work environments. Lastly, the study recommends an extension of the investigation to encompass the realm of public hospitals in Kenya.