Influence of Customer Orientation Posture on Transient Competitive Advantage Adoption among Private Hospitals in Nairobi City County, Kenya

https://doi.org/10.59952/tuj.v5i3.290

Authors

  • Veronicah Kaluyu United States International University - Africa
  • Lawrence Odollo Jomo Kenyatta University of Technology

Keywords:

Customer orientation, Strategic posture

Abstract

Dynamic changes in business environment have led to switch from pursuit of sustained competitive advantage to transient competitive advantage which enables the firm to adapt swiftly to a fast-changing environment. This study’s’ purpose was to assess the influence customer orientation, on the adoption of transient competitive advantage by private multi-practice hospitals in Nairobi City County, Kenya. This study was guided by the dynamic capability theory of the firm and McGrath (2013) transient competitive advantage theory. The study adopted a descriptive correlational survey research design. The total target population was 400 hospital administrators from which a sample size of 200 respondents was selected using Stratified random sampling method. To enhance reliability and validity of study instruments, a pilot study was carried out whereby a reliability coefficient of 0.7 was considered acceptable. Analysis of data was done within acceptance margin of error of 0.95. Regression beta coefficients were used to examine influence of the independent variables on the dependent variable among private multi-practice hospitals in Nairobi City County in Kenya. The study found out that that customer orientation had a statistically significant influence on transient competitive advantage (β= 0.246(t=.000) with model prediction of R square 0.218 significant at F=.000) The study concludes that customer orientation strategic postures has a statistically significant influence on transient competitive advantage among private multi-practice hospitals in Nairobi city County in Keny. Thus the study recommends the hospitals’ policy reviews to capture these areas for improvement: review policy to revamp customer needs surveys, competition analysis, increase customer responsiveness and after service care. The study findings may be important to the management of private hospitals in Kenya with regard to strategic posturing and adoption of transient competitive advantage and also in effort to ensure continuous improvement of customer service among HealthCare services.

References

Akbar G., Robert W., Larry H., Ferhat Z., Maziar R., Anthony H., Neeraj P., (2019) The Moderating Effect of Environmental Instability on the Hospital Strategy-Financial Performance Relationship. Journal of health care finance. Accessd online: http://healthfinancejournal.com/index.php/johcf/article/view/202

Al-alak, B., & Tarabieh, A. (2011). Gaining competitive & organizational performance through customer orientation, innovation differentiation and market differentiation. International Journal of Economics and Management Science, 1(5), 80–91

Al-Azzam, A.F.M. (2015) The Impact of Service Quality Dimensions on Customer Satisfaction: A Field Study of Arab Bank in Irbid City Jordan. European Journal of Business and Management, (7), 45-54.

Ansoff H.I., Kipley D., Lewis A.O., Helm-Stevens R., Ansoff R. (2019) Strategic Diagnosis. In: Implanting Strategic Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-99599-1_6

Ansoff, H. I. (1984) Implanting Strategic Management. Englewood Cliffs, NJ: Prentice-Hall.

Bosch, Z.J. & Rossouw, D., (2021) ‘Strategic positioning of a motorcycle manufacturer within the Fourth Industrial Revolution’, Acta Commercial - Independent Research Journal in the Management Science 21(1), 907.

Botes, M. & Pretorious, M. (2020). Exploring Management Perceptions of Competitive versus Transient Advantage. Journal of Contemporary Management 17(1),41-63

Chang, CH., Chiao, YC. & Tsai, Y. (2017). Identifying competitive strategies to improve the performance of hospitals in a competitive environment. BMC Health Serv Res 17, 756

Choi, Y. R., & Shepherd, D. A. (2004). Entrepreneurs' Decisions to Exploit Opportunities. Journal of Management, 30(3), 377–395.

Creswell, J. W. (2018). Research Design: Qualitative, Quantitative and Mixed Methods Approaches (4th ed.). Thousand Oaks, CA: Sage.

Garg, V.K., Walters, B.A. and Priem, R.L. (2003). Chief executive scanning emphases, environmental dynamism, and manufacturing firm performance. Strat. Mgmt. J., 24: 725-744

Gilbert, M., Pullano, G., & Pinotti, F., Valdano E., Polletto C., Boelle P., D’ortenzio. E., Yazdanpanah, Y., Eholie, S.P., Altmann, M., Gutierrez, B., Kraemer M.U. G & Colizza V. (2020). "Preparedness and vulnerability of African countries against importations of COVID-19: a modeling study," Lancet, 395(10227):871–877.

Hawkins, D., & Fryling, T. (2017). Redefining transformation. People and Strategy, 40(2), 46-51

Prahalad, C.K. and Hamel, G. (1994) Strategy as a Field of Study: Why Search for a New Paradigm? Strategic Management Journal, 15(1) 5-16.

Kaharuddin, A., Handaru, A.W., Sardan, W. & Mohammed, H., (2017) ‘Transient competitive advantage readiness: findings from hotels, cafés, and fashion retails in Bandung, Indonesia’, Int. J. Business and Globalizations, 18, (3), 417–427.

Kang’e, M., Senaji, E.D.T.A. & Orero, D.R. (2020). Firm Characteristics and Performance of Private Health Insurance Sector in Kenya. Journal of Business and Strategic Management. 5, 1 (May 2020), 15–27.

Kim, B.Y. (2008) Mediated Effects of Customer Orientation on Customer Relationship Management Performance. International Journal of hospitality & Tourism Administration. 9(2), 192-218.

Lewis, J. A., Packard, T. R., & Lewis, M. D. (2011). Management of human service programs. Cengage Learning.

Lindblom-ylänne, S., Lonka, K., & Leskinen, E. (2013). On the predictive value of entry-level skills for successful studying in medical school. Higher Education, 37(3), 239-258.

KMDB (2022). Kenya Medical and Dentist Board. Retrieved from: http://www.medicalboard.co.ke

Mahasneh, M. M., Alnahdi, S. A., & Bani Hani, J. S. (2020). Innovation in health services alignment with the competitive advantage achievement in private hospitals in Saudi Arabia: Strategic evidence. International Journal of Business and Social Science, 11(3), 58-68

McGrath, R. G. (2013). "Transient Advantage." Harvard Business Review 91(6): 62-70.

Miles, M. P., & Darroch, J. (2006). Large firms, entrepreneurial marketing processes, and the cycle of competitive advantage. European journal of marketing, 40(5/6), 485-501.

Mugenda, O.M., & Mugenda, A.G. (2003). Research Methods: Quantitative and Qualitative Approaches (Revised Ed). Nairobi: African Centre for Technology Studies (ACTS)

Muiruri, L. K., & Ngugi, K. (2018). The role of customer orientation in the adoption of transient competitive advantage by manufacturing firms in Kenya. Journal of Business and Retail Management Research, 12(3), 1-11. https://doi.org/10.24052/JBRMR/V12IS03/ART-01

Mutua P., (2020). Customer service strategy and competitive advantage of Gertrudes children’s hospital, Kenya. Thesis, University of Nairobi.

Naatu, F. (2016). Brand Building for Competitive Advantage in the Ghanaian Jewelry Industry. International Review of Management and Marketing, 6(3), 551–558.

Naamati S.L. (2020). Strategic management as adaptation to changes in the ecosystems of public hospitals in Israel. Israel journal of health policy research, 9(1), 65.

Naidoo, V. (2010). Firm survival through a crisis: The influence of market orientation, marketing innovation and business strategy. Industrial marketing management, 39(8), 1311-1320.

Nyakerario, B. and Oloko, F (2014). Customer relationship management: from strategy to implementation. Journal of Marketing Management, 22(2), 135-168.

Ondigo, B. N., & Okeyo, G. O. (2019). The effect of customer orientation on the adoption of transient competitive advantage among small and medium enterprises in Kenya. International Journal of Business and Management, 14(9), 1-14. https://doi.org/10.5539/ijbm.v14n9p1

Pascuci, L. M., Meyer Júnior, V., & Crubellate, J. M. (2017). Strategic management in hospitals: Tensions between the managerial and institutional lens. Brazilian Administration Review, 14(2), e160092.

Pfannstiel M., & Rasche C., (2017). Service Business Model Innovation in Healthcare and Hospital Management. Springer online, DOI:10.1007/978-3-319-46412-1

Pramudiana, Y., Rismayani, R., Firli, A., Rizky, T. Y. & Faiz A.S. (2017). Transient Competitive Advantages: A Case Study of Market Leader In Indonesian Telecommunication Industry. International Journal of Economics, Commerce, and Management United Kingdom, 5 (1), 305-318.

Saunders, M., Lewis, P.& Thornhill, A. (2016). Research Methods for Business Students. 7th Edition, Pearson, Harlow.

Simonet, A., Kamdem, D. & Nguefack, C. (2012). Impact of the Customer Relationship Management on the Performance of the Institutions of Microfinance in Cameroon: The Case of the CAMCCUL Network. International Journal of Management & Information Technology. 1(3), 37–53. https://doi.org/10.24297/ijmit.v1i3.1427.

Teece, D.J., Pisano, G. & Shuen, A. (1997) Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533.

Yamane, T. (1967). Statistics: An Introductory Analysis, 2nd Ed., New York: Harper and Row.

Zhang, J., Chen, Y., & Chen, L. (2020). Technological discontinuity and the duration of competitive advantage in the Chinese high-tech industry. Journal of Business Research, 113, 322-333.

Zikmund, W. G., Carr, J. C., Babin, B., & Griffin, M. (2013). Business Research Methods (8th ed.). Nelson Education.

Published

2023-09-29

How to Cite

Kaluyu, V., & Odollo, L. (2023). Influence of Customer Orientation Posture on Transient Competitive Advantage Adoption among Private Hospitals in Nairobi City County, Kenya. The University Journal, 5(3), 393–408. https://doi.org/10.59952/tuj.v5i3.290

Most read articles by the same author(s)