This paper examined the effect of innovative capabilities on transient competitive advantages of private hospitals in Kenya. The study addresses the competitive challenges faced by private hospitals in Kenya targeting 476 private hospitals’ top managers. The findings presented in this paper were drawn from 209 hospital managers. The study employed correlational research design, with innovative capabilities as the predictor variable and transient competitive advantages as the outcome variable. The data was analyzed using descriptive statistics and structural equation modelling. The Structural Equation Modelling (SEM) analysis demonstrated a statistically significant effect of innovative capabilities on transient competitive advantages, with a beta coefficient (β) of 0.412 and a p-value of 0.028. This suggests that innovative capabilities have a positive and meaningful effect on achieving transient competitive advantages of private hospitals in Kenya. The beta coefficient of 0.412 indicates a moderate strength of this effect. The p-value of 0.028, being less than 0.05, confirms that this result is statistically significant and not due to random chance. The study concludes that private hospitals with innovative capabilities are more likely to seize transient competitive advantages compared to private hospitals with low levels of innovative capabilities. Therefore, private hospitals need to prioritize innovation as a strategic priority. The study offers recommendations for private hospitals to allocate resources for research and development activities to enhance their innovative capabilities.
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Amboyi et al. (2024) studied this question.
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