Entrepreneurial Supply Chain Practices, Healthcare Financing and Performance of Public Hospitals in Kenya
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Date
2025-08
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UoEm
Abstract
The Kenya Vision 2030 development blueprint aspires to promote good health and
well-being. Consequently, the Government of Kenya has instituted reforms aimed at
achieving good health. These reforms include the establishment and revamping of the
Kenya Medical Supplies Authority (KEMSA) and a recent establishment of the Social
Health Authority. Despite these reforms, there is poor performance in the public
hospitals in Kenya. To ensure efficient, financially viable and relevant service delivery,
the entrepreneurial supply chain is critical, in public hospitals. Therefore, the study
focused on entrepreneurial supply chain practices, healthcare financing, and the
performance of public hospitals in Kenya. Specifically, the study investigated the effect
of innovative inventory management on the performance of public hospitals in Kenya,
the influence of proactive strategic sourcing on the performance of public hospitals in
Kenya, and the effect of risk taking on the performance of public hospitals in Kenya.
The study also sought to establish the moderating effect of healthcare financing on the
relationship between entrepreneurial supply chain practices and the performance of
public hospitals in Kenya. The study used resource orchestration, resource dependency,
and Schumpeterian entrepreneurship theories. The study adopted a positivism
philosophy and utilised descriptive and explanatory research designs. The study's target
population was 243 public level 4, level 5 and level 6 hospitals in Kenya. The sample
size was 151 public hospitals selected through proportionate sampling and simple
random sampling techniques. The unit of observation was 302 respondents. The study
utilised primary data collected through a semi-structured questionnaire, whose validity
was evaluated using face and content analysis, while reliability was checked through
the use of Cronbach Alpha with an acceptable coefficient value of 0.7. The collected
data was analysed descriptively and inferentially, while qualitative data was analysed
thematically using content analysis. The findings revealed that innovative inventory
management, proactive strategic sourcing, and risk taking have a positive and
statistically significant relationship with the performance of public hospitals in Kenya.
The study revealed a statistically significant moderating effect of healthcare financing
on the relationship between entrepreneurial supply chain practices and performance of
public hospitals in Kenya. The study concluded that the adoption of entrepreneurial
supply chain practices improves performance of public hospitals and therefore
recommends the chief executive officers and medical superintendents of public
hospitals to adopt innovative inventory management, proactive strategic sourcing and
risk taking as they promote healthcare service delivery, enhance hospital financial
viability, reduce operational costs, enhance hospital reputation and increase
effectiveness. The study recommends the Ministry of Health, Social Health Authority,
Treasury and County Executive Committee member for Health in the county
governments to institute policies and reforms that promote entrepreneurial supply chain
practices and sustainable healthcare financing in order to improve the performance of
public hospitals in Kenya.