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The University Journal Volume 5 Issue 3 2023 ISSN: 2519 – 0997 (Print)
~ 393 ~
Influence of Customer Orientation Posture on Transient Competitive
Advantage Adoption among Private Hospitals in Nairobi City County,
Kenya
1Veronicah Kaluyu and 2Lawrence Odollo
1 United Sates International University- Africa, Nairobi, Kenya
2Jomo Kenyatta University of Technology
Email: veroanuiodl@gmail.com
*Corresponding author
Cite: Kaluyu, V.K., & 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
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.
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Key words: Transient Competitive advantage, Strategic posture, Customer orientation
Introduction
Unpredictable and competitive environment has placed many firms at risk of losing their
competitiveness in the market (Pascuci, Meyer, & Crubellate, 2017).In particular, the health
sector is experiencing challenges such as the rise of digital technologies related to how
healthcare is delivered, such as telemedicine, changing patient populations, and their needs,
higher patient expectations, the development of medical technology, medical staff turnovers, and
the presence of many multi-practice hospitals (Pfannstiel, Rasche, 2017; Mahasneh, Alnahdi &
Bani-Hani, 2020). As a result, hospitals must find the right strategic posture and processes for
improvement of health care services (Chang, Chiao, & Tsai, 2017). The COVID-19 outbreak
posed a unique public health threat to most countries around the world, particularly African
countries such as Kenya because the government and most health facilities could not quickly
respond to COVID-19 cases (Gilbert, Pullano, Pinotti, 2020). To cope with the current unstable
environment there is need for the firms to have the proper strategic posture.
McGrath (2013) proposed the idea of transient competitive advantage and a model to explain this
concept using six strategies to achieve TCA, which include: removing industry restrictions,
adopting new standards and supporting innovation activities, focusing on customer experience
and solutions. Further McGraith asserts that organizations that have mastered turbulent
environments have learned to continually free up resources in order to support the development
of new ones. Despite the potential of this idea to enable businesses to thrive in the 21st Century,
little attention in terms of practice and scholarship has been observed. Thus this study focuses on
customer orientation strategic posture and transient competitive advantage Kenya‟s Private
healthcare system.
On the other hand, Igor Ansofs ideas on strategic posturing explain a firm strategy in terms of
change from a familiar environment to an unfamiliar world of new technologies, new
competitors, new consumer attitudes, new dimensions of social control, and above all, a
questioning of the firm's role in society to achieve competitive advantage (Ansoff, 1984; Ansoff,
Kipley, Lewis, Helm-Stevens, Ansoff, 2019). Consequently, Firms must respond to highly
turbulent environments by preparing for and anticipating all levels of turbulence through proper
and viable strategic planning, explicit aggressive strategies, and relevant organizational
capabilities to execute. Firms typically adopt specific strategic posture to achieve strategic goals.
This study investigated strategic posture variables such as customer orientation and strategic
aggressiveness.
Despite the importance of strategic posturing due to turbulent business environment; scanty
literature exists on scholarly works focusing on strategic posture and adoption of transient
competitive advantage. Nevertheless, there are several scholars who have explored related
studies on strategic posture and the adoption of transient competitive advantage from different
geographical regions and times. Naamati, (2020) carried a study on strategic management as an
adaptation to changes in the ecosystems of public hospitals in Israel. The study established that
healthcare organizations in Israel have been undergoing a turbulent environment as a result of
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government reforms in the public health services. To cope with this dynamic environment, health
facilities have been adopting strategic management, but full benefits are yet to be realized due to
various challenges such as inappropriate managerial strategies among others
In the United States of America, Akbar, Robert, Larry, Ferhat, Maziar, Anthony, and Neeraj,
(2019) carried a study on the effect of environmental instability on the hospital strategy-financial
performance relationship. The study established that the health care environment in America has
been experiencing rapid changes like registration of new regulations acts, change in consumer
expectations, and the emergence of new technologies and new sources of competition.
At regional level, there's not a lot of research done on temporary competitive advantage,
especially in Africa. A lot of studies seem to focus on some hidden factors, like Naatu's 2016
study on brand building for competitive edge in Ghana's adornments trade. The findings showed
that the most important aggressive marketing strategies companies use to gain a competitive
edge are innovation, internal branding, brand positioning, and customer introduction. Bosch &
Rossouw' (2021) studied how a motorcycle manufacturer got ahead in South Africa in the 4th
industrial era. It was proposed that to stay ahead of the competition, there is need to keep up with
the changing customer needs and expectations. A relative case study was done in Uganda where
product innovation and pricing had a big impact on competitive edge.
In Kenya, Mutua (2020) studied the use of customer service to gain a competitive advantage at
Gertrude's Children's Hospital in Kenya. The findings show that the hospital used a different
customer service strategy to stay competitive. Kang‟e in 2020, studied the influence of transient
advantage on performance; precisely, the role of innovative products, distribution models,
market sensing capability and strategic partnerships on performance in private health insurance
firms.
Hospitals and other healthcare providers face a multitude of challenges that require them to
operate differently in order to remain competitive in an environment characterized by volatility
and competition. For instance, in the aftermath of the coronavirus pandemic, hospitals in Kenya
faced the challenge of rapidly adapting to the evolving business landscape. It is against this
background, that this study assessed the influence of customer orientation strategic posture on
adoption of transient competitive advantage.
Statement of the Problem
In the dynamic and competitive environment of the 21st century, Temporary Competitive
Advantage has replaced Sustainable Competitive Advantage. Companies that embrace
Temporary Competitive Advantage (TCA) have a higher likelihood of surviving than those that
do not. According to McGrath (2013), a new strategy must be developed by fostering many
TCA's in order to enable businesses to adjust rapidly to the changing business landscape. A
United Nations report has revealed that over three and half billion individuals, representing more
than half of the world's population, are unable to access essential health services due to out-of-
pocket healthcare costs, forcing hundreds of millions of individuals to live on a minimum of
$1.90 per day. The healthcare sector in Kenya is facing a complex and challenging environment
due to the emergence of new disease patterns, the use of advanced technologies, market
competition, globalization, changing customer habits and needs, inefficiencies, low productivity,
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and diverse workforce requirements. Furthermore, globalization has enabled Kenyans to seek
medical care from other countries, such as India and South Africa, as well as some European
countries. This has resulted in an estimated 10,000 Kenyan patients travelling abroad annually
for medical treatment, at a total cost of 10 billion shillings, despite the country providing 90% of
the procedures. As a result, healthcare providers in the world and in Kenya must adapt their
business practices in order to remain competitive and provide quality service, as demonstrated
during the COVID-19 challenge.
Apparently, there has been a dearth of empirical research in this field, both domestically and
abroad. Initially, studies focused on the development of the transient competitive advantage
(TCA) theory. Hawkins andFryling (2017) have explored the concept of Temporary
Attractiveness (TA) in organizations. The majority of these studies suggest that TA can be highly
adaptive and applicable in competitive and unpredictable environments, as the value-generating
strategy is constantly evolving and creating new advantages. For example, Pamudiana (2017)
conducted a study on the TCA of a telecommunications company in Indonesia, Zhang (2020),
and Kaharuddin (2017) examined and quantified the TCA readiness of hotels and fashion
industry in Bandung, Indonesia. In South Africa, Botes and Pretorius (2020) examined the TCA
and performance of the private health insurance sector in Kenya. In this context, the aim of this
study was to bridge the gap between empirical evidence and the contextual issues in Kenya
healthcare by examining the customer care strategic posture and how it may affect the adoption
of temporary competitive advantages in the highly competitive environment in which Kenya‟s
private multistage hospitals operate.
Objectives of the Study
Study Objective
This study‟s general objective was to establish the influence of customer orientation on adoption
of transient competitive advantage by private multi-practice hospitals in Nairobi City County,
Kenya.
Literature Review
Theoretical Literature
This study explored theories of strategic posture and transient competitive advantage. The
theories used include: Dynamic Capabilities Theory to expound on the strategic aggressiveness
and customer orientation capabilities, Resource Advantage Theory to elucidate the technology
resource endowment variable, and Transient Competitive Advantage Theory (TCA) to guide on
Transient competitive advantage adoption which is the study‟s dependent variable.
Dynamic Capabilities Theory
The dynamic capability theory is based on Schumpeter‟s advancement theory, which says that a
company‟s competitive edge is created by taking existing assets and turning them into the
highest working capabilities in the organization. These capabilities let companies think about
changing customer needs and the business conditions that drive innovation, and then rearrange
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resources and the things they do. The notion that a firm's acquisition of valuable, rare, inimitable,
and non-substitutable (VRIN) resources is a source of long-term competitive advantage (Teece,
Pisano, & Shuen, 1997) is extended by dynamic capabilities theory: More specifically, DC
theory depicts path-dependent forms that allow firms to adapt to rapidly changing situations by
building, coordinating, and reconfiguring their asset and capability portfolios (Teece, Pisano &
Shuen, 1997Thus this theory explains customer orientation as dynamic capabilities that
organizations can adopt.
Transient Competitive Advantage Theory (TCA)
McGrath (2013) argues that the highly competitive environment has rendered the majority of
traditional strategic perspectives obsolete. To achieve alignment, adaptive organizations must
analyze their environment (consumers, rivals, and technology) and their internal organizational
capabilities associated with innovation (Garg et al., 2003). In times of rapid change in customer
groups and preferences, businesses must adjust their products and services to create a new
competitive environment (Hamel et al., 1994). This is why continuous research into markets and
customers is essential; and being the first to market with a new product or service is highly
valued.
Empirical Literature
Various studies have attempted to test the concept of strategic posture and either transient
competitive advantage or with other antecedent factors, this section briefly explores these
empirical studies
Influence of Customer Orientation on the Use of Transient Competitive Advantage
Choi and Shepherd (2004) studied entrepreneurs' decisions to take advantage of opportunities in
the United States. The study used quasi-experimental research design. Thirty-seven business
incubators were chosen at random from a list of incubator members in the United States, and two
sixty-seven entrepreneurs were contacted by phone or emailed letters-respondents were CEOs or
presidents of their companies. According to the study, entrepreneurs are more likely to capitalize
on opportunities when they have a better understanding of customer demand for new products,
technologies are fully developed.
Al-Azzam (2015) researched on the role of customer relationship strategies in attaining
competitive edge at Jordan's Princess Rahma Hospital. Analytical and descriptive research
designs were adopted in the study. Information was collected from 164 Princess Rahma Hospital
staff through a questionnaire. The study findings discovered that customer attraction and
retention strategies have a statistically significant effect on achieving competitive advantage.
According to Lewis (2011), customer service is all the activities involved in making it easy for
customers to reach the right parties within the company and receive quick and satisfactory
service, answers and resolutions of problems. In a survey conducted on 100 professionals from
Fortune 500 companies, “customer service” was ranked the third highest benefit of BPR at 40
percent (Flynn, 2015). It was similar to “increased profitability” that attained 42 percent. Banks
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and financial services firms in the USA also reported that reengineering has led to improvement
in customer service (Wood, 2014).
Locally, Nyakerario and Oloko (2014) examined the influence of customer relationship strategies
on the savings and credit union performance of public universities in Kenya. Customer
acquisition and retention strategies were also tested on SACCO's performance in comparison to
other organizations. Customer relationship strategies had significant effect on SACO
performance.
Conceptual Framework
From the reviewed literature the study variable relationships were hypothesized as demonstrated
in the conceptual Figure 1.
Independent variable Dependent variable
Figure 1. Influence of Customer Orientation Strategic Posture on adoption of Transient
Competitive Advantage
Methodology
This study employed a descriptive correlational design, guided by the positivistic research
philosophy. The descriptive correlation design as posited by Creswell and Creswell (2018), and
Saunders et al. (2016), aided in the testing and explanation of the associations between the
customer orientation strategic posture and transient competitive advantage. Additionally,
Zikmund (2013) proposed that a correlational design is suitable when the purpose of the study is
to determine a correlation between variables. The study's target population consisted of 400
hospital administrators (KMPDC, 2022). Yamane (1967) sample size formula was used to
compute a sample size of 200 hospital administrators. The core data for this research was
STRATEGIC POSTURE
TRANSIENT
COMPETITIVE
ADVANTAGE
Timely response to
environment changes
Flexibility in resource
allocation to
Systemic innovation
perspective
Customer Orientation
After treatment care Services.
Communications with
Customers.
Customer‟s Satisfaction. checks
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collected using a questionnaire. The findings were summarized using descriptive statistics such
as frequencies, means, and standard deviations, and regression analysis.
Results
Response Rate
The study targeted 200 hospital administrators, however, the research managed to collect data
from 176 respondents out of the targeted a total sample of 200. This represent 88% response rate.
According to Mugenda and Mugenda (2003), the statistically significant response rate for
analysis should be at least 50%. The study‟s response rate was acceptable since it was above
50%.
Descriptive Analysis of Variable Measures
The dependent and independent variables had data collected in form of five point Likert scales.
All the Likert scales were analyzed using means and standard Deviations as demonstrated in this
section.
Adoption of Transient Competitive Advantage
On a scale of 1 to 5 where an average score of 1 means strongly disagree, 2 means disagree, 3
means neutral, 4 means agree and 5 means strongly agree. The respondents averagely rated the
following statements testing the Adoption of transient competitive advantage with mean of 3.5
and above; in their hospital, the business plan is easily adapted to adapt to emerging business
environmental challenges (Mean=3.7, SD= 1.114), Risk assessment is integrated in business
planning (Mean=3.84, SD=0.927), Continuous monitoring and feedback integration is part of
their business plan (Mean=3.92, SD=1.129), In their hospital, budgets are evaluated and
adjusted to meet current and emerging expenses (Mean=3.64,SD=1.165), Hired employees are
encouraged to multitask and accept job redesign (Mean=3.87, SD= 1.126), their hospital's
strategic plan incorporates innovation and adaptation to change as part of its strategic objectives
(Mean=3.76, SD=0.930), their hospital has embraced a culture of creative teams where ideas are
shared (Mean=2.71. SD=1.0430 and the human resource policies adopt creativity and innovation
as part of performance appraisal measures (Mean=3.33, SD=0.956). The results are as shown in
the Table 1.
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Table 1. Adoption of Transient Competitive Advantage
N
Mean
Std.
Deviation
In my hospital, the business plan is easily adapted
to adapt to emerging business environmental
challenges
176
3.70
1.114
Risk assessment is integrated in business planning
176
3.84
.927
Continuous monitoring and feedback integration
is part of the business plan
176
3.92
1.129
In my hospital, budgets are evaluated and adjusted
to meet current and emerging expenses
176
3.64
1.165
Our financial plans allow for reallocation of vote
heads to accommodate new opportunities
176
3.26
1.237
Hired employees are encouraged to multitask and
accept job redesign
176
3.87
1.126
My hospital's strategic plan incorporates
innovation and adaptation to change as part of its
strategic objectives
176
3.76
.930
My hospital has embraced a culture of creative
teams where ideas are shared
176
2.71
1.043
The human resource policies adopt creativity and
innovation as part of performance appraisal
measures
176
3.33
.959
Customer Orientation
On a scale of 1 to 5 where an average score of 1 means strongly disagree, 2 means disagree, 3
means neutral, 4 means agree and 5 means strongly agree. The respondents averagely rated the
following statements testing the Customer orientation with mean of 3.5 and below; their hospital
offers variety counselling services after treatment (Mean=2.99, SD=0.980), in their hospital,
clients receive free diet guidance after treatment (Mean=2.71, SD=1.003), their hospital provides
medication advice services for discharged patients (Mean=2.38, SD=1.045), their customer care
team makes follow-up calls to clients to respond to after service care needs
(Mean=2.81,SD=1.062), their hospital sends text messages to customers during festive seasons
(Mean=2.73, SD= 1.307), in their hospital, we have social media chats for our loyal customers
(Mean=1.71, SD=0.927), their hospital often carries out from all customer satisfaction surveys
(Mean=3.85, SD=0.636), their hospital integrates feedback from customers in service
improvement programs (Mean=3.22, SD=0.998),and their administrators makes impromptu
checks on customers through walk in interviews (Mean=2.31,SD=0.924). The results are as
shown in the Table 2:
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Table 2. Customer Orientation
N
Mean
Std. Deviation
Our hospital offers variety counselling
services after treatment
176
2.99
.980
In my hospital, clients receive free diet
guidance after treatment
176
2.71
1.003
My hospital provides medication advice
services for discharged patients
176
2.38
1.045
Our customer care team makes follow-up calls
to clients to respond to after service care
needs
176
2.81
1.062
Our hospital sends text messages to customers
during festive seasons
176
2.73
1.307
In my hospital, we have social media chats for
our loyal customers
176
1.71
.927
Our hospital often carries out from all
customer satisfaction surveys
176
3.85
.636
Our hospital integrates feedback from
customers in service improvement programs
176
3.22
.998
Our administrators makes impromptu checks
on customers through walk in interviews
176
2.31
.924
Inferential Analysis
In this section both Pearson‟s correlation analysis and Linear regression analysis were conducted
to ascertain the relationships between study variables as well as how independent variables
influence the dependent variable. The results are illustrated in this section.
Correlation Analysis
Correlation test in this analysis is treated as a pretest before regression analysis. In this study,
analysis was carried out to determine whether there were significant associations between
variables. The Pearson‟s product-moment correlation coefficient (r) was used to explore
relationships between the variables, the direction and their strength. It was important to assess
the nature of relationships existing between the variables before carrying out further analysis.
Normally, r ranges between ±1. Where r= +0.7 and above it indicates a very strong positive
relationship; r=+0.5 to below 0.7 is a strong positive relationship; r=0.3-0.49 is a moderate
positive relationship while r=0.29 and below indicates a weak positive relationship. Where r=0 it
indicates that there is no relationship and if less than 0 then a negative correlation between
variables exists. The results of correlation analysis are presented in Table 3.
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Table 3. Pearson’s Correlation Matrix of Independent Variables of the Composite Model
Y:Transient
Competitive
advantage
Adoption
X2:Customer
Orientation
VIF
Y:Transient Competitive
advantage Adoption
Pearson Correlation
1.000
-
Sig. (2-tailed)
Sig. (2-tailed)
0
X2:Customer Orientation
Pearson Correlation
.467*
1.000
1.214
Sig. (2-tailed)
0
The correlation analysis results indicated that there was a positive and a significant relationship
between Transient completive advantage adoption and customer orientation (r=0.467, p<0.005).
Related studies connote similar results. For instance, Naidoo (2010) and Miles (2006) concur
that customer orientation is positively associated with improved organization performance and
attainment of competitive advantage.
Generally, correlations between the variables were strong (r=+0.5 to below 0.7) and (r=0.3-0.49)
which is a moderate positive relationship. None of the relationship tests had VIF of more than 10
meaning they were not highly correlated and thus suitable for further analysis using regression.
Regression Analysis
Linear regression analysis was run to test how the independent variables predicted the Dependent
variable; as well as to finally test if the independent variables had a statistically significant
influence on the dependent variable.
Linear Regression between Customer Orientation and Adoption of Transient Competitive
Advantage
The results from the model summary table showed that R-square=0.218 indicating that customer
orientation predicts 21.8% of the adoption of transient competitive advantage as shown in the
Table 4.
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Table 4: Model Summary for Customer Orientation and Transient Competitive Advantage
Model Summary
Model
R
R Square
Adjusted R Square
Std. Error of the
Estimate
1
.467a
.218
.216
.36099
a. Predictors: (Constant), Customer orientation
ANOVA Table for Linear Regression between Customer Orientation and Adoption of
Transient Competitive Advantage
The ANOVA table results in this study showed that the linear regression model of Y = β0 +
β1X1 is significantly linear at (F=13.311, p=0.00). In this model Y is the Transient competitive
advantage adoption Choice, X1 is the Customer Orientation, β0 is a constant, and β1 is the
coefficient of X1 in the model, this is illustrated in Table 5.
Table 5: ANOVA for Customer Orientation and Transient Competitive Advantage
ANOVAa
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
4.189
1
4.189
13.311
.000b
Residual
54.760
174
.315
Total
58.949
175
a. Dependent Variable: Transient Competitive Advantage Adoption
b. Predictors: (Constant), Customer orientation
Coefficients for Linear Regression between Customer Orientation and Adoption of
Transient Competitive Advantage
The coefficients table 6 indicate that the linear regression model Y = β0 + β1X1 is
Y=2.200+0.305X1. This means that, when other factors are held constant, an improvement in the
customer orientation by 1%, improves Transient Competitive Advantage Adoption Choice by 25
%. As such, customer orientation has statistically significant influence on transient competitive
advantage (β = 0.246).
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Table 6: Coefficients for Customer Orientation and Transient Competitive Advantage
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)
2.200
.233
9.435
.000
Customer
orientation
.305
.084
.246
3.648
.000
a. Dependent Variable: Transient Competitive Advantage Adoption
Agreeably, study findings from Kim (2008) showed that customer orientation has impact on
competitive advantage with the positive mediating role of innovation. Simonet, Kamdem, and
Nguefack (2012) assessed the effect of customer relationships on improving the commercial
performance of Cameroon's Micro Finance Institutions and found out that management of
computerized customer relationship and the closeness of social contacts have a positive effect on
performance, while satisfaction with previous customer experiences had a negative and
significant effect on performance.
In Kenya, studies also point to similar results. Nyakerario and Oloko (2014) elucidated that
Customer relationship strategies had significant effect on SACCO performance an aspect critical
for attainment of competitive advantage. Furthur more, Muiruri and Ngugi (2018), in study on
the role of customer orientation in the adoption of transient competitive advantage by
manufacturing firms in Kenya found statistically significant effect of customer orientation on
transient competitive while Muthoni and Ondigo (2021) had consistent findings but in a study of
customer orientation and transient competitive advantage in the banking industry in Kenya.
Discussions of Result
Influence of Customer Orientation on Adoption of Transient Competitive Advantage by
Private Multi-Practice Hospitals in Nairobi City County, Kenya
In this study, it was found out that customer orientation has a statistically significant influence on
transient competitive advantage adoption. Agreeably, study findings from Kim (2008) showed
that customer orientation has impact on temporary competitive advantage with the positive
mediating role of innovation. Evidence from Al-alak & Tarabieh (2011) study on gaining
competitive advantage and organizational performance through customer orientation, innovation
differentiation and market differentiation among Malaysian firms pin points that customer
orientation and organizational earning are positively associated with competitive advantage
adoption.
Furthermore, several studies in Kenya review consistency with this current study finding that
customer orientation has statistically significant influence on transient competitive advantage.
Muiruri and Ngugi (2018), in study on the role of customer orientation in the adoption of
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transient competitive advantage by manufacturing firms in Kenya found statistically significant
effect of customer orientation on transient competitive while Muthoni and Ondigo (2021) had
similar findings but in a study of customer orientation and transient competitive advantage in the
banking industry in Kenya. Ondigo and Okeyo in 2019 concurred with this direction of findings
by showing that customer orientation had significant effect in small and medium enterprises in
Kenya.
Generally, these studies agree that customer orientation is positively associated with the adoption
of transient competitive advantage among firms in Kenya; and that Firms that are customer-
oriented tend to be better able to identify and respond to customer needs, which can lead to the
development of innovative products or services and effective marketing strategies that create
short-term competitive advantage.
Conclusion
The study objective was “to examine the influence of customer orientation on adoption of
transient competitive advantage by private multi-practice hospitals in Nairobi City County,
Kenya”. According to the study findings, it is concluded that customer orientation (β= 0.246)
had statistically significant influence on transient competitive advantage among private multi-
practice hospitals in Nairobi city County in Kenya. Therefore, the study rejects the null
hypothesis and upholds the alternative hypothesis that customer orientation has statistically
significant influence on transient competitive advantage.
Recommendations
Deductions from the customer orientation descriptive analysis show that the hospitals have
averagely done well as far as various customer orientation practices are concerned with mean of
3.5 and slightly below. However, there is room for improvement in all. Glaringly, the
respondents did not concur with the fact that the hospitals provide medication advice services for
discharged patients (Mean=2.38, SD=1.045), that their customer care team makes follow-up calls
to clients to respond to after service care; and their administrators makes impromptu checks on
customers through walk in interviews (Mean=2.31, SD=0.924). These are gaps that the hospitals
can work to improve on. The test for influence of customer orientation on transient competitive
advantage, it shows only 25 % effect of customer orientation on competitive advantage. This
study recommends improvement on after visit/ after admission/ after checkup services so that
transient competitive advantage may be realized.
Recommendations for further study suggest use of other industry set ups to test the relationships
between study variables, as well as use of other statistical methods such as Structural equation
modelling to test hypothesis.
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