Firm-Level Institutions and Organization Performance of Level Five Hospitals in Nairobi County, Kenya: A Case of Mbagathi County and Referral Hospital.
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Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University, School of Business and Economics
Abstract
Kenya's healthcare system faces high maternal mortality rates and financial losses due to poor hospital management and inefficiencies. These challenges are exacerbated by inadequate regulations, resource limitations, and staff issues, undermining the quality of care in healthcare. Organization performance is influenced by various firm-level institutions such as reward systems, leadership, organizational structure, financial resources, and competencies. Understanding the impact of these factors on healthcare is crucial for addressing the systemic issues and improving overall outcomes. The purpose of the study was to determine the effect of firm-level institutions on the organization performance of level five hospitals in Nairobi County, a case of Mbagathi County and Referral Hospital. The objectives of the study were to examine firm-level institutions adopted by Mbagathi County and Referral Hospital, to assess the organization performance of Mbagathi County and Referral Hospital and to establish the effect of firm-level institutions on organizational performance at Mbagathi County and Referral Hospital. The study was underpinned by Institutional Theory, Resource-Based View, and Resource Dependency Theory. The researcher employed descriptive correlational research design, targeting a population of 376 respondents. A sample size of 194 was determined using the Yamane Formulae, but ultimately, 182 respondents participated. The study adopted stratified Random sampling technique, data was collected through a structured questionnaire, which was tested for reliability and validity prior to the data collection process. The analysis was conducted using SPSS version 26 to perform statistical evaluations. The study established that Mbagathi County and Referral Hospital implemented firm-level institutions, with leadership and organizational culture significantly influencing outcomes, while reward systems had limited impact. Employee dissatisfaction related to the nurse-to-patient ratio and resource availability underscored the need for improved workload management and career development opportunities. The study concluded that effective leadership and a strong organizational culture are crucial for enhancing performance, with leadership positively impacting both outcomes and culture. While reward systems contributed to performance, they did not significantly influence culture or leadership. Pearson correlation findings indicated effective leadership (r = 0.747, p = 0.048) and strong organizational culture are critical for enhancing organizational performance. While reward systems correlate with performance (r = 0.640, p = 0.031), they have limited influence on leadership or culture. This highlighted that leadership and culture are more vital for driving overall success. The study recommends fostering strong leadership and a positive organizational culture to improve performance. It emphasized the importance of inspiring leaders and creating collaborative environments, as well as aligning reward systems with these goals to reinforce desired behaviors and promote success.
Description
MASTER OF BUSINESS ADMINISTRATION in Strategic Management
Keywords
Kenya's healthcare system, High maternal mortality rates and financial losses, Poor hospital management and inefficiencies
Citation
Njeri, M. F. (2024). Firm-Level Institutions and Organization Performance of Level Five Hospitals in Nairobi County, Kenya: A Case of Mbagathi County and Referral Hospital. Daystar University, School of Business and Economics