The Role of Organizational Culture in Moderating Corporate Governance Practice Influence on Faith-Based Hospitals Performance in Kenya

In Kenya, faith-based hospitals provide 40% health care services to the medium and low-income populations in the rural areas. These hospitals are facing sustainability challenges because of poor organizational performance. These failures have been attributed to overlooking the adoption of corporate governance practices where for instance boards of management of health facilities are largely made up of religious officials, therefore making the facilities lack proper corporate culture when compared to their more privately owned health facilities counterparts. It is against this background that this study sought to examine the influence of corporate governance on hospitals overall and the moderating effect of corporate culture on the influence. A hospital based census with mixed data collection method was employed. For quantitative data, questionnaires were used with senior managers of Christian faith-based hospitals Key Informant Interviews with 9 purposively sampled informants: 2 from CHAK secretariat, 2 from KCCB secretariat and 5 board chairpersons of governing boards in purposively selected level 5 faiths based hospital. For quantitative data, descriptive and inferential analysis techniques were used while for qualitative data, content analysis was done. From the regression results, corporate governance practices of board composition, accountability, stewardship of resources and shared strategic direction had significant and positive influences on the performance of faith-based hospitals in Kenya. The study recommends that proprietors ensure that the criteria for choosing their board members are enhanced and improved to ensure there is no bias in the selection process and that boards intentionally and actively involve all stakeholders in the decision-making process of the organization, management should ensure accountability aspects and the related policies are adhered to, board members should be properly inducted and continuously trained on governance to ensure they execute their mandate effectively.