Influence of Strategic Management Practices on Organizational Performance of Mission Hospitals in Kenya

Abstract

Mission hospitals in Kenya provide 43% healthcare service delivery, to the medium and low-income populations, which mostly reside in the rural areas. Despite their importance, policy makers have not focused on their organizational performance, and knowledge on their efficiency and effectiveness is limited and inadequate. A superior organizational performance by mission hospitals would boost healthcare service delivery in the country. The main objective of this study was to examine the influence of strategic management practices on organizational performance of mission hospitals in Kenya. The specific objectives were; to examine the influence of strategic composition of board of directors, establish the influence of strategic evaluation, determine the influence of strategic control and establish the influence of hospital capabilities on the one hand, and organizational performance of mission hospitals in Kenya on the other hand. The hypotheses were guided by the research objectives. The study was anchored on Agency Theory, Stewardship Theory and resource-based view theory of the firm. In the past, mission hospitals received grants from the government and unrestricted donations from churches abroad. This has now changed; the support given is minimal, and with high hospital costs and increased human resource migration, it is imperative for mission hospitals to know how strategic management practices influence superior organizational performance. The study population was 58 mission hospitals in Kenya. The target population was 33 mission hospitals, and simple random sampling technique was adopted. Primary and secondary data was collected and analysed. The study used a cross-sectional research design method. A pilot study was conducted to examine the reliability and validity of the questionnaire using the Cronbach Alpha method. Descriptive statistics were used to profile the respondents. Inferential statistics and multiple linear regression analysis were used to test the hypotheses. The study used correlation analysis to establish the relationship between the independent and the dependent variables. The study findings revealed a positive correlation between strategic composition of the board of directors, strategic evaluation, strategic control, hospital capabilities and organizational performance. In regression analysis, the study revealed a positive influence on organizational performance by strategic composition of board of directors, strategic evaluation and strategic control. Hospital capabilities however had a negative influence on organizational performance. The study concluded that the three strategic management practices are important in influencing superior organizational performance. Mission hospitals should therefore adopt strategic management practices for superior organizational performance. This study however restricted itself to mission hospitals, and generalization of research findings in other industries should be done carefully. Further research studies on influence of strategic management practices on organizational performance were recommended for other industries, public and private hospitals, and to include a variety of hospital stakeholders.