📄 Abstract
The private healthcare sector is increasingly viewed as a crucial player in meeting the growing demand for medical services. With rising populations and evolving health needs, private institutions now serve approximately 37% of the population by providing additional capacity and innovative healthcare solutions. However, despite their importance, many private hospitals are experiencing a decline in performance, which threatens their sustainability. This study sought to investigate the relationship between service differentiation strategies and the performance of private hospitals in Nakuru County, Kenya. Specifically, the study explored how price differentiation, brand image, customized technology, and customized service affect the performance of these hospitals. The research was guided by three theories: Strategic Choice Theory, Transaction Cost Theory, and Service Quality Theory. A correlational research design was employed, targeting a population of 123 drawn from 41 private hospitals in Nakuru County. These included operations managers and finance managers. Data was collected using a structured questionnaire. To ensure content validity, expert input was incorporated, and reliability was tested using the Cronbach’s Alpha method, with a coefficient of 0.7 or above considered acceptable. Purposive sampling and a census were used, employing both descriptive and inferential statistical techniques. Descriptive statistics, including means, modes, frequencies, and standard deviations were applied. Inferential statistics such as Pearson correlation analysis and multiple regression analysis were utilized. The analyzed results were presented using tables, charts, frequency distributions, regression outputs, ANOVA tables, and correlation matrices. The results revealed that customized service differentiation has a strong positive and statistically significant relationship with organizational performance (r = 0.726, P < 0.01), indicating that enhanced customized service is strongly associated with improved performance. The findings of this study are expected to provide valuable outcome for private hospital administrators, policymakers, and academic researchers by enhancing understanding of how differentiation strategies influence the performance of private hospitals and by informing strategic decision-making in the healthcare sector.
🏷️ Keywords
📚 How to Cite:
Nathan David, Dr. Lydia Langat, Dr. Patricia Chepkwony , SERVICE DIFFERENTIATION STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF PRIVATE HOSPITALS IN NAKURU COUNTY, KENYA , Volume 12 , Issue 9, September 2026, EPRA International Journal of Multidisciplinary Research (IJMR) , Pages: 483 - 490 ,