Influence of Economic Dimension Strategy on Organizational Image of Kisumu Heart Hospital

Abstract

Corporate Social responsibility (CSR) is becoming an increasingly significant component of many firms’ strategic planning decisions. Statistics shows that more than 80% of health sector organizations in Kenya don’t seem to realize the importance of Corporate Social Responsibility. Among the approximately 20% that do understand the significance of corporate social responsibility, only 2% strive to implement it owing to a number of reasons. This has left a negative perception and bad image to the organizational stakeholders involving the patients, shareholders and the staff, sometimes leading to low profitability. This is evident despite the fact that success of a company is measured by its contribution to society. Most studies have shown both positive and negative relationship or failed to clarify impacts of corporate social responsibility of organizational corporate social responsibility on its image. None of the studies has also specifically shown how adoption of economic, environmental and social dimension strategies have impacted on organizational image of Kisumu heart Hospital. The main objective of this study was therefore to investigate the influence of economic dimension strategy on organizational image of Kisumu heart hospital. Study was anchored stakeholder theory. The study adopted correlational research design. The population of the study comprised of a total of 400 outpatients, inpatient and employees. The study adopted stratified random sampling and the sample size was 196 respondents. Primary data was used which was collected through questionnaire. Data was analysed using both descriptive and correlation statistics specifically Pearson Product Moment Correlation and Simple linear regression Model. The findings revealed that Economic dimension strategy has a positive and significant effect on corporate image (B=.132, p<.05. It was concluded that corporate social responsibility has a positive and significant effect on corporate image of Kisumu heart hospital. The study however recommended improving both economic dimension strategy The study may also inform the stakeholders in the health sector on the importance of CSR on the organizational image and growth.