Strategic Planning and Competitive Advantage in Level Six Private Hospitals: Perspectives from Nairobi County, Kenya

Despite the rapid growth of private level Six hospitals in Nairobi County, many continue to struggle with maintaining a sustainable competitive advantage. Less than 30 percent of these hospitals report consistent growth in patient volumes and financial performance. This study was underpinned by Resource Based View theory and the Balance Scorecard Framework. The purpose of this study was therefore to assess the effect strategic planning on the competitive advantage in Level Six private hospitals in Nairobi County, Kenya. The study selected all Level Six private hospitals in Nairobi County focusing on eight key departments within each hospital that play a critical role in supporting the hospital’s strategic objectives. A quantitative cross-sectional survey design with descriptive and explanatory components was employed utilizing a census approach to include all 64 targeted respondents, eight senior managers from each Level Six private hospital owing to their key roles in strategic decision-making. The research instruments underwent tests for validity and reliability to ensure data quality. Data was examined using the Statistical Package for Social Sciences (SPSS) version 24, utilizing both descriptive and inferential statistics, such as multiple regression analysis. The findings revealed that strategic planning explained a significant proportion of the variation in competitive advantage among Level Six private hospitals in Nairobi County, Kenya. The ANOVA results showed that the model was significant in explaining the relationship between strategic planning and competitive advantage. Additionally, the findings showed that strategic planning, was positively and significantly related to competitive advantage. Strategic management planning is significant determinants of competitive advantage in Level Six private hospitals and thus, private hospitals should scale up strategic planning to enhance competitiveness. Keywords: Strategic Planning, Competitive Advantage, Private Hospitals, Healthcare Management, Nairobi County, Kenya.