INNOVATION STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF COUNTY REFERRAL HOSPITALS IN KENYA

Abstract

County referral hospitals play a crucial role in enhancing the accessibility of high-quality health services. This is achieved via the adoption of innovation strategies that contribute to their expansion and overall performance of the hospitals. This study therefore evaluated the effect of innovation strategies on organizational performance of county referral hospitals in Kenya. The specific objectives of the study were: to evaluate the effects of marketing innovation strategies on organizational performance of county referral hospitals in Kenya; to determine the effect of process innovation strategies on organizational performance of county referral hospitals in Kenya and; to assess the effect of product innovation strategies on organizational performance of county referral hospitals in Kenya. This study was anchored on innovation diffusion theory, resource-based theory and organizational control theory. The study employed descriptive research design and positivism research philosophy. Data was obtained from 47 referral county hospitals. The study focused on a total target population of 1800 respondents. The study employed purposive sampling utilizing Yamane’s formula to arrive at a sample population of 327 respondents. Questionnaires were used to collect primary data. Secondary data was collected from hospital records. Data was analyzed using descriptive and inferential statistics. Correlational analysis and binary regression analysis were employed to analyze the influence of innovation strategies on the organizational performance of county referral hospitals in Kenya. The study results indicated that marketing innovation strategies had negative and significant effect on operational cost ratio of county referral hospitals in Kenya hence improving its organizational performance. The study findings also indicated that product innovation strategies had a negative and significant influence on operational cost ratio (organizational performance) of county referral hospitals in Kenya. Finally, the study results indicated that process innovation strategies had a negative and significant effect on operational cost ratio of county referral hospitals in Kenya. These results imply that adoption of innovation strategies reduces operational cost of county referral hospitals hence improving organizational performance of the hospitals. Study findings provided valuable insights for the ministry of health by assessing the extent to which county referral hospitals in Kenya have adopted innovations strategies, identifying the problems they encounter, and evaluating the effectiveness of these innovations in enhancing organizational performance. The findings may also help health practitioners and policy makers in county referral hospitals to get the necessary information to develop policies and strategies that will improve the organizational performance of the hospitals. This research may provide further research areas to academic scholars.