TITLE:
Strategy Formulation as a Driver of Service Delivery in Private Hospitals: The Mediating Role of Operational Effectiveness
AUTHORS:
Rodgers Norman Demba, Fronica Monari, Arvinilucy Onditi
KEYWORDS:
Strategy Formulation, Operational Effectiveness, Service Delivery, Strategic Management, Private Hospitals, Kenya
JOURNAL NAME:
Open Journal of Business and Management,
Vol.14 No.5,
September
18,
2026
ABSTRACT: Strategy formulation enables healthcare organizations to define their strategic direction by establishing long-term goals, aligning organizational objectives with their mission and vision, and allocating resources to improve organizational performance. While effective strategy formulation has been associated with enhanced organizational outcomes, evidence on the mechanisms through which it influences service delivery remains limited, particularly in private healthcare settings in Kenya. Operational effectiveness links strategic intentions to organizational outcomes through efficient resource utilization, process optimization, innovation, and quality improvement. This study examined the mediating effect of operational effectiveness on the relationship between strategy formulation and service delivery among selected private hospitals in Kisumu County, Kenya. A cross-sectional study was conducted among 449 respondents selected through consecutive sampling from two private hospitals. Data were collected using a structured questionnaire and analyzed using IBM SPSS Statistics version 30. Descriptive statistics, simple linear regression, Pearson correlation, and Hayes PROCESS Macro mediation analysis with 5000 bootstrap samples were performed. Respondents reported high levels of strategy formulation (mean = 4.05, SD = 0.78), operational effectiveness (mean = 4.17, SD = 0.64), and service delivery (mean = 4.26, SD = 0.62). Strategy formulation significantly predicted service delivery (β = 0.56, p p p p = 0.006). In conclusion, operational effectiveness significantly and partially mediates the relationship between strategy formulation and service delivery among private hospitals. Healthcare managers should strengthen operational systems alongside strategic planning to maximize service delivery and performance.