Influence of Cost Leadership Strategy on Organizational Performance of Private Hospitals in Mombasa County Kenya.
- August 11, 2021
- Posted by: rsispostadmin
- Categories: Business Administration, IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VII, July 2021 | ISSN 2454–6186
Josephine Ng’andu Malunju1*, Appolonius Shitiabai Kembu, Phd2
1Masters of Business Administration, Mount Kenya University, Kenya
2Lecturer School of Business and Economics, Mount Kenya University, Kenya
Abstract: This study aimed at ascertaining the influence of cost leadership on organizational performance of private hospitals in Mombasa County Kenya. The study was guided by Institutional theory. The study utilized census and adopted a descriptive survey design. Using a target population of 52 respondents composed of Chief executives and Branch managers, the study employed quantitative research methodology and structured questionnaires was used to collect data. Pilot test was done to measure validity and reliability of research instruments. Descriptive as well as inferential statistics were computed to measure the relationship between variables. The results showed that there was a positive correlation between cost leadership strategy and the dependent variable organizational performance. In conclusion Cost leaders seek to improve efficiency and control costs throughout the organizations supply chain. The study recommended that Private hospitals should open more branches in different parts of Mombasa County.
Keywords; Cost Leadership, Performance, Private Hospitals.
I. BACKGROUND OF THE STUDY
Health care is one of the key pillars of economic development in the sense that, any economy needs a healthy workforce for sustained productivity, economic growth and development. The private healthcare facilities in Kenya focuses on making more profits, the sector is growing fast and with the main aim of delivering the best healthcare services to people in the country. Best quality doctors are employed and they play a major role in private healthcare facilities.
The business environment in the last few decades has been faced with numerous changes due to factors such as globalization, adoption of technology, fragmented markets and liberalization of industry rules (Hill, Jones & Schilling, 2014). According to Camisón and Villar-López (2014) the organizations that seek to survive must be fast enough to respond to the pressures to compete on levels unrivalled in the past. Therefore, organizations that survive the turbulent business are those that incorporate a strategy in their long term plan. These strategies are aimed at enabling the firm to gain competitive advantage over their rivals in the market and to enhance long-term performance and profitability.
Cost leadership strategies are supported a firm’s ability to supply a product or service at a lower cost than its rivals (Birjandi, Jahromi, Darasi & Birjandi, 2014). The basic
