Influence of Supply Chain Ambidexterity on Performance of Accredited Hospitals in Kenya

Abstract

The study sought to establish the influence of application of supply chain ambidexterity on performance of accredited hospitals in Kenya. To achieve this aim, the study assessed the ambidextrous application of five supply chain practices and their influence on performance of level three to level six accredited hospitals in Kenya. The specific objectives were to assess the influence of supply chain orientation on performance of accredited hospitals in Kenya, to examine the influence of lean supply chain on performance of accredited hospitals in Kenya, to examine the influence of supply chain analytics on performance of accredited hospitals in Kenya, to assess the influence of supply chain integration on performance of accredited hospitals in Kenya, to evaluate the influence of supply chain resilience on performance of accredited hospitals in Kenya and to evaluate the mediating effect of hospital size in promoting performance of accredited hospitals in Kenya. The target population was all 773 accredited hospitals offering both inpatient and outpatient services in Kenya as listed by NHIF. The sample size was 264 hospitals derived using simplified Yamane formula. The sampling technique was stratified random sampling. The study used self administered questionnaires to collect data. The descriptive statistics, reliability and validity tests of the constructs, correlation, factor and regression analysis models were used to analyze the collected data. Data was presented in tables and charts as was deemed appropriate in the study. The study findings indicated that private hospitals had a higher Data Envelopment Analysis score compared to the public and faith based hospitals. The findings implied that private hospitals were generally efficient than other type of hospitals. Further, the study determined that supply chain orientation, supply chain resilience and supply chain integration had a positive significant influence on performance. However, lean supply chain and supply chain analytics did not have a significant influence on performance. The study also found an R2 value of 0.935 which implied that 93.5% of the variation in performance of hospitals in Kenya could be attributed to supply chain orientation, supply chain resilience, supply chain integration and hospital size. The study concluded that supply chain ambidexterity is a key antecedent of hospital performance. The study also concluded that hospital size had a positive mediating effect of hospital size on the relationship between supply chain ambidexterity and performance of hospitals. Further, the study concluded that simultaneous application of supply chain resilience, supply chain integration and supply chain orientation improved hospital performance more than implementing the individual strategies separately. The study recommended that hospitals need to simultaneously adopt the three supply chain ambidexterity strategies by investing in spare capacity, multiple payment platforms, integrative systems such as supply chain management systems and cultivating a culture of trust, credibility and commitment for all employees and across the supply chain partners.