CORPORATE GOVERNANCE, SERVICE INNOVATION, GOVERNMENT REGULATIONS AND ORGANISATIONAL PERFORMANCE OF FAITH BASED HOSPITALS IN KENYA

Abstract

The purpose of the study was to establish the relationship between corporate governance, service innovation, government regulations and organizational performance of Faith-Based Hospitals in Kenya. The specific objectives of the study were; to establish the effects of corporate governance on organizational performance of faith-based hospital in Kenya; to determine the mediating effect of service innovation on the relationship between corporate governance and organizational performance of faith-based hospital in Kenya; to examine the moderating effect of government regulations on the relationship between corporate governance and organizational performance of faith-based hospital in Kenya; and to determine the mediated moderation effect of service innovation and government regulation on the relationship between corporate governance and organizational performance of Faith Based Hospitals in Kenya. The study was anchored on the Resource Dependence Theory and employed positivist research philosophy. This study used cross- sectional survey research approach. The study adopted a census method to obtain study population. The unit of analysis consisted of level 4 and 5 Faith-based Hospitals in Kenya while the unit of observation consisted of Finance Director, Executive Director and Medical director of all the target faith-based hospitals. Three hundred and nine questionnaires were administered to Finance Director, Executive Director and Medical director of all faith-based hospitals using purposive sampling. Primary data was collected using a structured questionnaire. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS version 27). Regression analysis was used in the prediction of causal inferences between the study variables and hypothesis testing. The study observed ethical standards of research: Informed consent, voluntary participation, confidentiality, privacy and anonymity. The study findings indicated that there was a statistically significant correlations between corporate governance and organizational performance of Faith-Based Hospitals in Kenya. Service innovation was found to have a partial mediation effect on the relationship between corporate governance and organizational performance of Faith-Based Hospitals in Kenya. Moreover, government regulations were found to have an enhancing moderating effect on the relationship between corporate governance and organizational performance of Faith Based Hospitals in Kenya. The study recommends that regulations governing faith-based hospitals' adoption of innovative medical services and technology should be simplified and hospitals should engage stakeholders in the process of designing and improving services to make sure that innovations meet their needs and improve results. To improve service delivery and efficiency, faith-based hospitals should embrace advances made possible by technology, such as telemedicine, electronic health records, and mobile health applications.