Influence of Firm Risk Propensity on Adoption of Transient Competitive Advantage
a case of Private Multi-Practice Hospitals in Nairobi City County, Kenya
DOI:
https://doi.org/10.70641/ajbds.v1i2.112Keywords:
Firm Risk Propensity, Adoption of transient competitive advantage, Private Multi Practice HospitalsAbstract
The dynamism of change in business environment sets the stage for firms, including healthcare providers to pursue transient competitive advantage in order to adapt to the complex landscape. Firms with greater inclination towards taking risks are likely to introduce new ideas, embrace advanced technologies, and optimize their processes, resulting in improved operational effectiveness. This study sought to establish the influence of firm risk propensity on the adoption of transient competitive advantage by private multi practice hospitals in Nairobi City County, Kenya. The study was anchored on dynamic capability theory and transient competitive advantage model. Methodologically, the study adopted a quantitative research approach using a structured questionnaire. It used a cross-sectional and correlational descriptive research design. The target population was 400 hospital administrators narrowing down to a sample size of 200. In order to test the study hypothesis that stated that firm risk propensity has no statistically significance influence on transient competitive advantage a regression analysis was done. Based on study findings, it is concluded that firm risk propensity (β= 0.242) had a statistically significant influence on transient competitive advantage among private multi-practice hospitals in Nairobi city County in Kenya. Consistently, this study recommends that the hospitals need to pay more focus on risk preparedness by putting in place contingent plans to handle anticipated risks.
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