The relationship between the level of environmental scanning and strategic choice in health management organizations in Kenya

Abstract

Today's organizations face an external environment that is increasingly complex and volatile. The objective of the study was to establish the relationship between the level of environmental scanning and strategic choice in Health Management Organizations. The findings of the study is helpful in determining whether Health Management Organizations have been successful in taking opportunities in the external environment while at the same time safeguarding against threats in the external environment. Executives managing various firms will find this study applicable in giving hints on managing similar circumstances as those experienced by the Health Management Organization industry. Environmental scanning involves macro-environment trend analysis and microenvironment uncertainty. Macroeconomic trend analysis consists of the appraisal of opportunities and threats which are outside the organization. The internal environment of an organization consists of strengths and weaknesses of that organization which are usually within the control of management. The research was a descriptive survey. A questionnaire was developed to test the relationship between the level of environmental scanning and strategic choices made in Health Management Organizations. The study was based on a population of 23 Health Management Organizations located in Nairobi County. Stratified sampling procedures used assured the researcher that the sample was representative of the population. During the study, twenty two questionnaires were administered to solicit responses. The response rate was 82%. A regression analysis model was developed to test the relationship between the level of environmental scanning and strategic choice in Health Management Organizations. From the findings, the researcher established a positive correlation between the dependent and independent variables and therefore concluded that there was a relationship between the level of environmental scanning and strategic choices made in Health Management Organizations.