Marketing strategy and organisational strategy: a study of regional private hospitals

[Abstract]: This study has focused on marketing strategy and organisational strategy in the context of regional private hospitals located in southern Queensland and northern New South Wales. It expands on the body of knowledge by formulating propositions that examine the relationship between marketing strategy and organisational strategy. By employing theoretical concepts of marketing strategy and organisational strategy, the study set out to answer the research question: How does marketing strategy influence organisational strategy in regional private hospitals? The results showed that an influential relationship between marketing strategy and organisational strategy does exist, that this influence derives from several concepts related to both strategy types, and that the interactions among these concepts are both complex and diverse. The research methodology used in this research consisted of a qualitative approach through case study research. Eight case studies were conducted on regional private hospitals — four in Queensland and four in New South Wales. Data were collected through semi-structured interviews with the strategic decision makers from each organisation. These decision makers consisted of the Chief Executive Officers, Directors of Nursing, administration and finance staff, and professional medical staff. The data collected were analysed using the qualitative analysis program Leximancer supported by additional content analysis. In the health care settings studied, influencing concepts were found to include the desire to provide quality health services, the role of the Director of Nursing in the organisation, strategic orientation perspectives held by staff at different levels in the organisation, patient management systems, and the formation and maintenance of positive relationships with key stakeholders through strategy communication. In terms of marketing strategy, the concepts that were most influential included word-of-mouth communication, doctor recruitment, community awareness, communication of services and organisation existence, positive reputation, medical specialty strategies, doctor relationships and retention, GP support, patients, private health insurance and government policy on private hospitals. This study found that strategy communication plays a particularly large role in the marketing strategy of regional private hospitals and includes both external strategy communication (physician and community relationships) and internal strategy communication (employee relationships). An exploration of a strategic orientation continuum and its application in health care was conducted during the course of this research. Findings indicated that when marketing strategy and organisational strategy are related to the strategic orientation continuum, CEOs and other strategic decision makers showed uncertainty and indecisiveness about various organisational characteristics.