Operations Innovation and Performance of Level Six Public Hospitals in Kenya

Abstract

Innovation is among the key strategies which companies in different operational sectors adopt so as to gain a competitive advantage amongst its competitors. For a firm to be said to have accomplished in being innovative, they must exhibit effective products/services, effective processes, application of modern technologies as well as new ideas that can be found very readily within the market settings or as well as the society in which the firm operates. Today's value is generated by operations, while tomorrow's opportunities are created by innovations. Big innovations are created from small ones due to the cumulative strength that comes with innovation. The term market innovation entails mixing and selection of various markets in order to establish customers preferred purchasing preference. The performance of a firm is usually considered based on the efficiency and effectiveness of the firm’s operations, of which the firm’s profitability is the most utilized financial measure that is employed when it comes to the overall determination of organizational performance. Level six hospitals in Kenya (mostly private) are operating in increasingly competitive, highly regulated and dynamic market and therefore they have to formulate strategies to ensure their survival. The study objective was to establish effects of operations innovation on performance of level six public hospitals in Kenya. The study was guided by Theory of Diffusion of Innovation as well as the Organizational control theory. A descriptive cross-sectional research design was adopted to undertake this survey. The target population that formed the unit of analysis for this study were level six public hospitals in Kenya. The four level six hospitals in Kenya constituted the study population. Primary data for the study data was collected using semi structured questionnaires. Quantitative data was collected and statistical analyzed. The results of the survey found out that level six hospitals utilized ICT as their technology innovation strategy. The study also established that ICT is a technology innovation strategy that contributed to hospital service delivery. Further, the study found out that innovation strategies contribute to hospital service delivery through improved innovation process. The study concludes that information and communication technology is the most used technology innovation technology among level six hospitals in Kenya and that introduction of new products is the most widely used product innovation strategy among the level six hospitals in Kenya. The study finally recommends that the continuous technological change. It was also recommended that the ministry of health in Kenya should create an enabling environment that enhances innovations among level six hospitals for full realization of the innovation strategies benefits.