Effect of financial capability on customer relationship management in private hospitals in Kenya

Abstract

The purpose of this study was to establish the effect of financial capability on customer relationship management in private hospitals in Kenya. The study adopted descriptive survey design. It targeted 161 private hospitals which are accredited by NHIF in Kenya and which formed the unit of analysis of the study. Simple random sampling was then be used to obtain the 644 respondents. The researcher utilized a structured questionnaire with a five-point Likert scale to gather the data. The collected data was coded and entered in SPSS for further analysis. Descriptive and inferential analysis was conducted. The findings indicate there was a statistical and significant relationship between financial capabilities and customer relationship management. Financial capabilities explained 48.5% of the variability in customer relationship management in private hospitals. Hospitals should plan ahead forecast on financial emerging issues to avoid financial distress. Good governance is critical in an organization because it enables flexible adjustments to the emerging spending patterns as strategic demands arise.

Keywords: {'name': 'Financial Capabilities, Customer Relationship Management,Private Hospitals'}

Authors & affiliations

Faithmercy Wanyi Muthigah
Affiliation not supplied

David Kiragu
Affiliation not supplied

Anne Sang
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

Adeyemi, B. (2011). Bank failure in Nigeria: a consequence of capital inadequacy, lack of transparency and non-performing loans? Banks and Bank Systems, 6(1)

DOI: 10.13005/bbra/2036

DOI: 10.1016/j.sbspro.2016.05.419

DOI: 10.1109/ICCOINS.2016.7783196

DOI: 10.1108/IJPHM-11-2015-0054

DOI: 10.1001/jama.1990.03440020081037

Chianda. C. & Mahmood. Y. (2013). The Importance of Leadership Role in CRM Success as a Strategy. A Case Study of United Bank Limited, Pakistan. Mälardalen University Library Journal, School of Business, Society and Engineering; 2013. , p. 94

DOI: 10.1111/j.1936-4490.2003.tb00303.x

Dous, M., Salomann, H., Kolbe, L, and Brenner, W. (2014), Knowledge Management Capabilities in CRM: Making Knowledge For, From and About Customers Work. 11th Americas Conference on Information Systems, Omaha, NE, USA, 2014.

Gongera, E., G., Ouma, B., O. &Were, J., N. (2013). The Effects of Financial Risks on Profitability of Sugar Firms in Kenya. European Journal of Business and Management.5 (3), 124-135.

DOI: 10.5539/gjhs.v8n3p65

DOI: 10.1007/s11747-015-0460-7

Kathini, E., (2012), Utilization levels of computerized physician order entry (CPOE) by health care workers in Mbagathi District Hospital Nairobi Kenya. IOSR Journal of Nursing and Health Science (IOSR-JNHS), 9.

Kingstone, Z. (2014). The Impact of Customer Relationship Management on Customer Satisfaction in the Banking Industry –A Case of Jordan. European. Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)Vol.6, No.32, 2014

DOI: 10.1108/LHS-12-2013-0045

Maina, M. N. (2016). Effect of Customer Perfection on Performance of Private Hospital in Nairobi: A Case Study of Karen Hospital. International Journal of Business anf Commerce, 4(05), 60-71.

DOI: 10.1016/j.jretconser.2016.10.011

Memba, F., & Nyanumba, J. (2013). Causes of financial distress: A survey of firms funded by Industrial and Commercial Development Corporation in Kenya. Interdisciplinary Journal of Contemporary Research in Business, 4(12), 11711185.

Ministry of Health, Government of Kenya (2016) Kenya National eHealth Policy 2016-2030

Mohite, R. A., Kanthe, R. U., & Pawar. V. P. (2013), Customer relationship management in hospitals with reference to Miraj City. International Journal of Business Management & Research (IJBMR

DOI: 10.35942/ijcab.v3iII.4

Nasrabad, R. R. (2017). Customer Relationship Management in Agile Healthcare Organizations. International Journal of Economics and Financial Issues, 7(2), 730-732.

DOI: 10.6007/IJARBSS/v8-i3/3954

DOI: 10.1080/10686967.2015.11918416

DOI: 10.1007/s11606-016-3836-6

DOI: 10.13106/ijidb.2018.vol9.no12.7.

DOI: 10.12691/ajphr-6-4-3

DOI: 10.3923/rjbm.2017.28.38

Talevski. A., Faed. A. & Radmand. P. (2010), The Critical Success Factors for Implementation of CRM and Knowledge Management in a Work Setting. International Conference on P2P, Parallel, Grid, Cloud and Internet Computing, Fukuoka Institute of Technology, Fukuoka, Japan, 4-6 November 2010.

DOI: 10.1108/JEIM-04-2014-0042

DOI: 10.1016/j.techfore.2015.12.019

Weru, S. W. (2014). Customer Relationship Management as a Marketing Strategy in Imperial Health Sciences in Kenya. A Masters’ thesis submitted to Nairobi University.

World Health Organization. (?2015)?. Health in 2015: from MDGs, Millennium Development Goals to SDGs, Sustainable Development Goals. World Health Organization. https://apps.who.int/iris/handle/10665/200009