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Performance-oriented: toward a successful strategy.

K Kumar1, R Subramanian, C Yauger

  • 1University of Michigan-Dearborn, USA.

Marketing Health Services
|July 1, 1997
PubMed
Summary
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Hospital profitability has declined due to industry changes. This study reveals four market orientation clusters in hospitals and their link to performance, suggesting tailored strategies for better results.

Area of Science:

  • Health Care Management
  • Strategic Management
  • Market Orientation

Background:

  • The healthcare industry has undergone significant changes, impacting hospital management and profitability.
  • Historically protected by regulations, hospitals now face intense market pressures.
  • Declining operating profit margins necessitate strategic adaptation.

Purpose of the Study:

  • To examine the strategic significance of market orientation in the healthcare industry.
  • To identify distinct forms of market orientation among hospitals.
  • To investigate the relationship between market orientation and hospital performance.

Main Methods:

  • Clustering analysis was used to group hospitals based on market orientation components.
  • The study identified four distinct clusters representing different forms of market orientation.

Related Experiment Videos

  • Performance metrics were analyzed in relation to identified market orientation groups.

    • Main Results:

    • Hospitals were categorized into four distinct clusters based on their market orientation strategies.
    • A significant relationship was found between specific market orientation forms and hospital performance outcomes.
    • The findings highlight the critical role of market orientation in hospital success.

    Conclusions:

    • Different forms of market orientation are associated with varying performance levels.
    • Hospitals should adopt tailored market orientation strategies to achieve specific performance goals.
    • Strategic market orientation is crucial for navigating the competitive healthcare landscape.