Diversification Strategy and Service Delivery of Level Five Hospitals in Nairobi County, Kenya

Abstract

The study was set out to provide an investigation of the influence of diversification strategy on service delivery of level five Hospitals in Nairobi County, Kenya. Four aspects of diversification strategy that were covered include horizontal integration strategy, vertical integration strategy, concentric diversification strategy and conglomerate diversification strategy. The adopted research design was descriptive survey and 45 hospitals were covered and census was used. Information in its primary form was gathered through questionnaire and analysis was guided by means and standard deviations as well as regression analysis and presented through tables. The study established that highly adopted diversification strategy among the studied hospitals was horizontal integration strategy (M=3.68) followed by vertical integration strategy (M=3.66), conglomerate diversification strategy (M=3.59) and lastly concentric diversification strategy (M=3.50) and all these had significant effect (p<0.05) on service delivery of level five Hospitals in Nairobi County. The study concludes that diversification strategy has significant influence on service delivery of level. The study recommends that the management team working among level five hospitals in Kenya should improve on their concentric diversification strategy by leveraging existing resources to enter into new markets to provide health care services to large number of patients. Policy makers working among level five hospitals in Kenya should come up with relevant policies to guide diversification practices for effective service delivery.