ENVIRONMENTAL-ADAPTIVE CHANGE MANAGEMENT STRATEGY AND PERFORMANCE OF SELECTED PRIVATE HOSPITALS IN NAIROBI CITY COUNTY, KENYA

Abstract

Purpose of Study: This study examined the influence of environmental-adaptive change management strategy on the performance of selected private hospitals in Nairobi City County, Kenya. It specifically investigated how adaptation to regulatory requirements, technological responsiveness, and market sensitivity influence operational efficiency, customer satisfaction, employee engagement, and financial performance in a dynamic healthcare environment. Methodology: The study adopted an analytical cross-sectional research design, targeting 1,092 managerial staff from 26 private hospitals in Nairobi City County. A sample of 293 respondents was determined using Kothari’s formula. Primary data were collected through structured questionnaires and analysed using SPSS version 28, employing descriptive statistics, Pearson correlation, and regression analysis. Findings: The findings revealed that environmental-adaptive change management was highly rated, with an overall mean of 4.25 (SD = 0.72). Adaptation to regulations recorded the highest mean (4.32), followed by technological responsiveness (4.25) and market sensitivity (4.19). Hospital performance achieved an overall mean of 4.19 (SD = 0.72), with customer satisfaction scoring highest (4.31) and financial performance lowest (4.06). Environmental-adaptive change management demonstrated a strong, positive, and statistically significant relationship with hospital performance (r = 0.69, p < 0.01). Regression analysis confirmed a significant positive effect (β = 0.39, p < 0.001). Consequently, the null hypothesis was rejected. Conclusion: The study concludes that environmental-adaptive change management significantly contributes to the performance of private hospitals in Nairobi City County. Hospitals should institutionalise environmental scanning, strengthen technological adoption, invest in continuous staff training, and develop flexible decision-making structures. Healthcare regulators should provide sector-specific guidance, incentives, and capacity-building support to enhance organisational adaptability and sustainability.