Effect of Leadership in Strategic Planning on Performance of Faith Based Health Care Institutions in Meru County, Kenya

Abstract

The primary objective of this study was to investigate the impact of strategic planning drivers on the performance of faith-based healthcare institutions in Meru County, Kenya. There were four specific objectives: to assess the influence of leadership in strategic planning, environmental scanning, stakeholder involvement, and the strategic planning formulation process on the performance of faith-based healthcare institutions in Meru County, Kenya. The research drew upon the Strategic Fit Theory, Porter's Competitive Advantage Theory, and Institutional Theory. Adopting a descriptive research design, the study targeted 421 employees across 23 faith-based healthcare institutions in Meru County. Using Yamane's formula for categorical data, the study focused on a sample size of 205 respondents. Quantitative data was collected through questionnaires distributed to respondents using a drop-and-pick method, while qualitative data was gathered from hospital administrators using an interview guide. The study employed frequencies, means, and standard deviation to present descriptive results. For inferential statistics, correlation analysis, regression analysis, and analysis of variance were used. The study's results revealed a positive and significant correlation between leadership, environmental scanning, stakeholder involvement, the strategy formulation process, and the organizational performance of faith-based healthcare institutions in Meru County. Regression analysis indicated that strategic planning drivers accounted for 59.5% of the variance in organizational performance. The study found that stakeholder involvement did not exert a significant influence on the performance of faith-based healthcare institutions. As a recommendation, the study suggests that faith-based healthcare institutions should enhance their strategic planning by strengthening collaborations with stakeholders, improving resource mobilization, evaluating threats and opportunities, and involving employees in the strategic planning formulation process. Additionally, the study recommends further research to assess the impact of the internal organizational environment on the performance of faith-based healthcare institutions in other counties in Kenya. Policymakers in faith-based organizations are encouraged to support individual organizations in developing strategic management guidelines that promote regulation and control.