Research Article
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The effect of product differentiation strategy on innovation : An application in private hospitals

Year 2020, Volume: 7 Issue: 4, 273 - 283, 01.12.2020

Levent Yücel Gül Banu Dayanç Kıyat

Abstract

It is observed that there is a significant increase in the performance of businesses that are dependent on at least one of the competitive strategies. With the inclusion of different quality and number of hospitals in the system, tourism, education, etc. As in other sectors, hospitals also need to determine their competitive strategies. The main purpose of the research conducted in this context is to determine the effect of product differentiation strategy on innovation from competitive strategies. The research was conducted on 303 private hospital employees operating in Istanbul. After descriptive statistics, exploratory and confirmatory factor analyzes were applied for both scales. The validity and reliability of the scales were ensured with the structural modifications made to ensure sectoral and cultural harmony. Afterwards, normality and descriptive statistics were examined. Finally, correlation and regression analyzes were conducted to test the research hypotheses. As a result of the research, it has been determined that there is a positive and positive relationship between product differentiation strategy and innovation and that the product differentiation strategy has a positive effect on innovation. This result shows that the adoption of the product differentiation strategy in hospitals has a direct effect on the success of innovation practices. 

Keywords

Product Differentiation Strategy, Innovation, Private Hospitals

References

  • 1.Dess, G.G. and Davis, P.S. (1984). Porter’s (1980) Generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal. 1984, Vol. 27, No. 3, 467-488.
  • 2.Lamont, B.T., Marlin, D. and Hoffman, J.J. (1993). Porter’s generic strategies discontinuous environments and performance: a longitudinal study of changing strategies in the hospital industry. HSR:Health Services Research. 28: 623-640.
  • 3.Blazeska, D. and Ristovska N. (2016). The product design as a significant element of differentiation for achieving market competitiveness. Economic Development, No. 1-2, p.(41-58).
  • 4.Kelly, C.J. and Young, A.J. (2017). Promoting innovation in healthcare. Future Healthcare Journal. Vol 4, No 2: 121–125.
  • 5.Fisher, R.J. (1991). Durable differentiation strategies for services. Journal of Services Marketing, Vol. 5. Iss 1. pp. 19-28.
  • 6.McGee, J. (2015). Differentiation Strategies. In Wiley Encyclopedia of Management. Volume 12 Strategic Management (eds C. L. Cooper, J. McGee and T. Sammut‐Bonnici) 1-3.
  • 7.Sherman, H., Leach, T.C. and Rowley D.J. (2008). Sabre Yachts: a case study. Business Strategy Series, Vol. 9 Iss 5 pp. 249-271.
  • 8.Sun, Chia-Hung. (2018). Timing of entry and location/product differentiation. International Journal of Economic Theory, 14, 179–200.
  • 9.Allen, R. and Helms, M. (2006), "Linking strategic practices and organizational performance to Porter's generic strategies", Business Process Management Journal, Vol. 12 No. 4, pp. 433-454.
  • 10.Arping, S. and Loranth, G. (2006). Corporate leverage and product differentiation strategy. Journal of Business, Vol. 79, No. 6., 13/23, 93-114.
  • 11.Rachmat, R.A.H., Hurriyati, R. and Sultan, M.A. (2019). Product differentiation, celebrity endorsement and purchase intention: case study of makuta cake Bandung, West Java, Indonesia. Global Business and Management Research: An International Journal, Vol. 11, No. 1 (2019, Special Issue) 275-283.
  • 12.Fernández-Olmos, M., Dejo-Oricain N. and Rosell-Martínez J. (2016). Product differentiation strategy and vertical integration: an application to the Doc Rioja wine industry. Journal of Business Economics and Management, Volume 17(5): 796–809.
  • 13.Dickson, P. R. and Ginter, J.L. (1987). Market segmentation, differentiation, and marketing strategy. Journal of Marketing Vol. 51 (April 1987), 1-10.
  • 14.Barrena, R. and Sánchez, M. (2009). Using emotional benefits as a differentiation strategy in saturated markets. Psychology & Marketing, Vol. 26(11): 1002–1030.
  • 15.Shao, Xiao-Feng. (2015). Product differentiation design under sequential consumer choice process. International Journal of Production Research, Vol. 53, No. 8, 2342–2364.
  • 16.Stern, A.A. (1989). Pricing and differentiation strategies. Planning Review, Vol. 17. Iss 5. pp. 30 – 34.
  • 17.Nybakk, E. Crespell, P. and Hansen, E. (2011). Climate for innovation and innovation strategy as drivers for success in the wood industry: moderation effects of firm size, industry sector, and country of operation. Silva Fennica. 45(3). 415-430.
  • 18.Camisón, C. And Villar-López. A. (2012). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research. 1-12.
  • 19.Ahmed, P.K. (1998). Culture and climate for innovation. European Journal of Innovation Management. Volume 1. Number 1. pp. 30–43.
  • 20.Uzkurt, C., Kumar, R., Kimzan, H.S., Eminoğlu, G. (2013). Role of innovation in the relationship between organizational culture and firm performance A study of the banking sector in Turkey. European Journal of Innovation Management. Vol. 16 No. 1, pp. 92-117.
  • 21.Nagano, M.S., Stefanovitz, J.P. and Vick, T.E. (2014). Innovation management processes, their internal organizational elements and contextual factors: An investigation in Brazil. Journal of Engineering and Technology Management. Volume 33. 63-92.
  • 22.Montes, F.J.L., Moreno, A.R. and Fernandez, L.M.M. (2004). Assessing the organizational climate and contractual relationship for perceptions of support for innovation. International Journal of Manpower. Vol. 25 No. 2, pp. 167-180.
  • 23.Dedahanov, A.T., Rhee, C. and Yoon, J. (2017). Organizational structure and innovation performance: Is employee innovative behavior a missing link?, Career Development International, Vol. 22 Issue: 4, pp.334-350.
  • 24. Scott, S.G. and Bruce, RA. (1994). Determinants of innovative behavior: a path model of individual ınnovation in the workplace. Academy of Management Journal. Vol. 37. No, 3. 580-607.
  • 25.Gehani, R.R. (2013). Innovative strategic leader transforming from a low-cost strategy to product differentiation strategy. Journal of Technology Management & Innovation. 2013, Volume 8, Issue 2 s:144-155.
  • 26. Abraham, J.M., Gaynor, M. and Vogt, W.B. (2007). Entry and competition in local hospital markets. The Journal of Industrial Economics, 0022-1821. Volume LV. No. 2. 265-288.
  • 27.Zwanziger, J., Melnick, G.A. and Simonson, L. (1996). Differentiation and specialization in the California hospital industry 1983 to 1988. Medical Care, Vol. 34. No. 4. pp. 361-372.
  • 28.Devers, K.J., Brewster L.R. and Casalino L.P. (2003). Changes in hospital competitive strategy: A new medical arms race. HSR: Health Services Research. 38(1, pt 2):447-469.
  • 29.Trinh, H.Q. and Begun, J.W. (2019). Strategic differentiation of high-tech services in local hospital markets. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, Volume 56: 1-8.
  • 30.Succi, M.J., Lee, S.Y. and Alexander, J.A. (1997). Effects of market position and competition on rural hospital closures. Health Services Research, 31:6. 679-699.
  • 31.Goldstein, S.M., Ward, P.T., Leong, G.K. and Butler, T.W. (2002). The effect of location, strategy, and operations technology on hospital performance. Journal of Operations Management, 20. 63–75.
  • 32.Luft, H.S., Robinson, J.C., Garnick, D., Maerki, S.C., McPhee, S.J. (1986). The role of specialized clinical services in competition among hospitals. Inquiry. 23(1):83-94.
  • 33.Rivers, P.A. and Glover, S.H. (2008). Health care competition, strategic mission, and patient satisfaction: research model and propositions. Journal of Health Organization and Management, Vol. 22. Iss 6. pp. 627-641.
  • 34.Noether, M. (1988). Competition Among Hospitals. Journal of Health Economics, 7. 259-284.
  • 35.Miller, R.H. (1996). Competition In The Health System: Good News And Bad News. Health Affairs, Volume 15, Number 2. 107-120.
  • 36.Marlin, D., Huonker, J.W. and Sun, M. (2002). An examination of the relationship between strategic group membership and hospital performance. Health Care Management Review. 27(4):18-29.
  • 37.Amin, M. and Zahora Nasharuddin, S. (2013). Hospital service quality and its effects on patient satisfaction and behavioural intention. Clinical Governance: An International Journal, Vol. 18. No. 3. pp. 238-254.
  • 38. Gaynor, M. (2006). Competition and Quality in Health Care Markets. Foundations and Trends in Microeconomics, Vol. 2. No 6. 441–508.
  • 39.Aditi Naidu, A. (2009). Factors affecting patient satisfaction and healthcare quality. International Journal of Health Care Quality Assurance, Vol. 22. No. 4. pp. 366-381.
  • 40.Baalbaki, I., Ahmed, Z., Pashtenko, V.H. and Makarem, S.C. (2008). Patient satisfaction with healthcare delivery systems. International Journal of Pharmaceutical and Healthcare Marketing, Vol. 2.Issue: 1. pp.47-62.
  • 41.Dhar, M., Griffin, M., Hollin, I. and Kachnowski, S. (2012). Innovation spaces six strategies to inform health care. The Health Care Manager. Volume 31, Number 2, pp. 166–177.
  • 42.Kaluzny, A.D. (1974). Innovation in health services:theoretical framework and review of research. Health Service Research. 9(2):101-120.
  • 43.Fleuren, M., Wiefferink, K. and Paulussen, T. (2004). Determinants of innovation within health care organizations literature review and delphi study. International Journal for Quality in Health Care. Volume 16, Number 2: pp. 107–123.
  • 44. Gürbüz, S., Şahin, F. (2014). Sosyal Bilimlerde Araştırma Yöntemleri. Seçkin Yayınları. Ankara.

Ürün farklılaştırma stratejisinin inovasyon üzerindeki etkisi: Özel hastanelerde bir uygulama

Year 2020, Volume: 7 Issue: 4, 273 - 283, 01.12.2020

Levent Yücel Gül Banu Dayanç Kıyat

Abstract

Rekabet stratejilerinden en az birine bağlılığın işletmelerin bir strateji geliştirememesinden daha yüksek performansla sonuçlanacağı görüşünden hareketle, uygun bir strateji ortamına sahip işletmelerin en yüksek performansı gösterirken, stratejilerini değiştirmeyen işletmelerin performansında bir değişiklik olmamakta ve stratejilerini uygun bir strateji ortamına doğru değiştiren işletmelerin ise performansında bir artış olduğu görülmektedir. Hastaneler özelinde de benzer bir durumun varlığı söz konusudur. Pazar yapısı ve rekabet arasındaki ilişkilerin doğası gereği, farklı nitelik ve sayıda hastanenin sisteme dahil olması ile diğer işletmelerde olduğu gibi hastaneler arasındaki rekabette de önemli bir artış olduğu görülmektedir. Bu kapsamda yapılan araştırmanın temel amacı, rekabet stratejilerinden olan ürün farklılaştırma stratejisinin inovasyon üzerindeki etkisini tespit etmektir. Araştırma, İstanbul’da faaliyet gösteren özel hastane çalışanları üzerinde gerçekleştirilmiştir. Anket tekniği ile toplanan 303 adet veri, SPSS 21 ve AMOS 20 istatistik paket programları ile analiz edilmiştir. Tanımlayıcı istatistikler sonrasında, her iki ölçek için keşfedici ve doğrulayıcı faktör analizleri uygulanmıştır. Sektörel ve kültürel uyumu sağlamaya yönelik olarak gerçekleştirilen yapısal modifikasyonlarla birlikte ölçeklerin geçerlilik ve güvenilirlikleri sağlanmıştır. Devamında normallik ve betimleyici istatistikler incelenmiştir. Son olarak ise, araştırmaya ait hipotezleri test etmek maksadıyla korelasyon ve regresyon analizleri yapılmıştır. Yapılan araştırmanın sonucunda, ürün farklılaştırma stratejisi ile inovasyon arasında pozitif ve olumlu bir ilişki bulunduğu ve ürün farklılaştırma stratejisinin inovasyon üzerinde pozitif bir etkiye sahip olduğu tespit edilmiştir. Bu sonuç, hastanelerde ürün farklılaştırma stratejisinin benimsenmesinin, inovasyon uygulamalarının başarısının artmasında doğrudan etkisi olduğunu göstermektedir.

Keywords

Ürün Farklılaştırma Stratejisi İnovasyon Özel Hastaneler

References

  • 1.Dess, G.G. and Davis, P.S. (1984). Porter’s (1980) Generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal. 1984, Vol. 27, No. 3, 467-488.
  • 2.Lamont, B.T., Marlin, D. and Hoffman, J.J. (1993). Porter’s generic strategies discontinuous environments and performance: a longitudinal study of changing strategies in the hospital industry. HSR:Health Services Research. 28: 623-640.
  • 3.Blazeska, D. and Ristovska N. (2016). The product design as a significant element of differentiation for achieving market competitiveness. Economic Development, No. 1-2, p.(41-58).
  • 4.Kelly, C.J. and Young, A.J. (2017). Promoting innovation in healthcare. Future Healthcare Journal. Vol 4, No 2: 121–125.
  • 5.Fisher, R.J. (1991). Durable differentiation strategies for services. Journal of Services Marketing, Vol. 5. Iss 1. pp. 19-28.
  • 6.McGee, J. (2015). Differentiation Strategies. In Wiley Encyclopedia of Management. Volume 12 Strategic Management (eds C. L. Cooper, J. McGee and T. Sammut‐Bonnici) 1-3.
  • 7.Sherman, H., Leach, T.C. and Rowley D.J. (2008). Sabre Yachts: a case study. Business Strategy Series, Vol. 9 Iss 5 pp. 249-271.
  • 8.Sun, Chia-Hung. (2018). Timing of entry and location/product differentiation. International Journal of Economic Theory, 14, 179–200.
  • 9.Allen, R. and Helms, M. (2006), "Linking strategic practices and organizational performance to Porter's generic strategies", Business Process Management Journal, Vol. 12 No. 4, pp. 433-454.
  • 10.Arping, S. and Loranth, G. (2006). Corporate leverage and product differentiation strategy. Journal of Business, Vol. 79, No. 6., 13/23, 93-114.
  • 11.Rachmat, R.A.H., Hurriyati, R. and Sultan, M.A. (2019). Product differentiation, celebrity endorsement and purchase intention: case study of makuta cake Bandung, West Java, Indonesia. Global Business and Management Research: An International Journal, Vol. 11, No. 1 (2019, Special Issue) 275-283.
  • 12.Fernández-Olmos, M., Dejo-Oricain N. and Rosell-Martínez J. (2016). Product differentiation strategy and vertical integration: an application to the Doc Rioja wine industry. Journal of Business Economics and Management, Volume 17(5): 796–809.
  • 13.Dickson, P. R. and Ginter, J.L. (1987). Market segmentation, differentiation, and marketing strategy. Journal of Marketing Vol. 51 (April 1987), 1-10.
  • 14.Barrena, R. and Sánchez, M. (2009). Using emotional benefits as a differentiation strategy in saturated markets. Psychology & Marketing, Vol. 26(11): 1002–1030.
  • 15.Shao, Xiao-Feng. (2015). Product differentiation design under sequential consumer choice process. International Journal of Production Research, Vol. 53, No. 8, 2342–2364.
  • 16.Stern, A.A. (1989). Pricing and differentiation strategies. Planning Review, Vol. 17. Iss 5. pp. 30 – 34.
  • 17.Nybakk, E. Crespell, P. and Hansen, E. (2011). Climate for innovation and innovation strategy as drivers for success in the wood industry: moderation effects of firm size, industry sector, and country of operation. Silva Fennica. 45(3). 415-430.
  • 18.Camisón, C. And Villar-López. A. (2012). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research. 1-12.
  • 19.Ahmed, P.K. (1998). Culture and climate for innovation. European Journal of Innovation Management. Volume 1. Number 1. pp. 30–43.
  • 20.Uzkurt, C., Kumar, R., Kimzan, H.S., Eminoğlu, G. (2013). Role of innovation in the relationship between organizational culture and firm performance A study of the banking sector in Turkey. European Journal of Innovation Management. Vol. 16 No. 1, pp. 92-117.
  • 21.Nagano, M.S., Stefanovitz, J.P. and Vick, T.E. (2014). Innovation management processes, their internal organizational elements and contextual factors: An investigation in Brazil. Journal of Engineering and Technology Management. Volume 33. 63-92.
  • 22.Montes, F.J.L., Moreno, A.R. and Fernandez, L.M.M. (2004). Assessing the organizational climate and contractual relationship for perceptions of support for innovation. International Journal of Manpower. Vol. 25 No. 2, pp. 167-180.
  • 23.Dedahanov, A.T., Rhee, C. and Yoon, J. (2017). Organizational structure and innovation performance: Is employee innovative behavior a missing link?, Career Development International, Vol. 22 Issue: 4, pp.334-350.
  • 24. Scott, S.G. and Bruce, RA. (1994). Determinants of innovative behavior: a path model of individual ınnovation in the workplace. Academy of Management Journal. Vol. 37. No, 3. 580-607.
  • 25.Gehani, R.R. (2013). Innovative strategic leader transforming from a low-cost strategy to product differentiation strategy. Journal of Technology Management & Innovation. 2013, Volume 8, Issue 2 s:144-155.
  • 26. Abraham, J.M., Gaynor, M. and Vogt, W.B. (2007). Entry and competition in local hospital markets. The Journal of Industrial Economics, 0022-1821. Volume LV. No. 2. 265-288.
  • 27.Zwanziger, J., Melnick, G.A. and Simonson, L. (1996). Differentiation and specialization in the California hospital industry 1983 to 1988. Medical Care, Vol. 34. No. 4. pp. 361-372.
  • 28.Devers, K.J., Brewster L.R. and Casalino L.P. (2003). Changes in hospital competitive strategy: A new medical arms race. HSR: Health Services Research. 38(1, pt 2):447-469.
  • 29.Trinh, H.Q. and Begun, J.W. (2019). Strategic differentiation of high-tech services in local hospital markets. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, Volume 56: 1-8.
  • 30.Succi, M.J., Lee, S.Y. and Alexander, J.A. (1997). Effects of market position and competition on rural hospital closures. Health Services Research, 31:6. 679-699.
  • 31.Goldstein, S.M., Ward, P.T., Leong, G.K. and Butler, T.W. (2002). The effect of location, strategy, and operations technology on hospital performance. Journal of Operations Management, 20. 63–75.
  • 32.Luft, H.S., Robinson, J.C., Garnick, D., Maerki, S.C., McPhee, S.J. (1986). The role of specialized clinical services in competition among hospitals. Inquiry. 23(1):83-94.
  • 33.Rivers, P.A. and Glover, S.H. (2008). Health care competition, strategic mission, and patient satisfaction: research model and propositions. Journal of Health Organization and Management, Vol. 22. Iss 6. pp. 627-641.
  • 34.Noether, M. (1988). Competition Among Hospitals. Journal of Health Economics, 7. 259-284.
  • 35.Miller, R.H. (1996). Competition In The Health System: Good News And Bad News. Health Affairs, Volume 15, Number 2. 107-120.
  • 36.Marlin, D., Huonker, J.W. and Sun, M. (2002). An examination of the relationship between strategic group membership and hospital performance. Health Care Management Review. 27(4):18-29.
  • 37.Amin, M. and Zahora Nasharuddin, S. (2013). Hospital service quality and its effects on patient satisfaction and behavioural intention. Clinical Governance: An International Journal, Vol. 18. No. 3. pp. 238-254.
  • 38. Gaynor, M. (2006). Competition and Quality in Health Care Markets. Foundations and Trends in Microeconomics, Vol. 2. No 6. 441–508.
  • 39.Aditi Naidu, A. (2009). Factors affecting patient satisfaction and healthcare quality. International Journal of Health Care Quality Assurance, Vol. 22. No. 4. pp. 366-381.
  • 40.Baalbaki, I., Ahmed, Z., Pashtenko, V.H. and Makarem, S.C. (2008). Patient satisfaction with healthcare delivery systems. International Journal of Pharmaceutical and Healthcare Marketing, Vol. 2.Issue: 1. pp.47-62.
  • 41.Dhar, M., Griffin, M., Hollin, I. and Kachnowski, S. (2012). Innovation spaces six strategies to inform health care. The Health Care Manager. Volume 31, Number 2, pp. 166–177.
  • 42.Kaluzny, A.D. (1974). Innovation in health services:theoretical framework and review of research. Health Service Research. 9(2):101-120.
  • 43.Fleuren, M., Wiefferink, K. and Paulussen, T. (2004). Determinants of innovation within health care organizations literature review and delphi study. International Journal for Quality in Health Care. Volume 16, Number 2: pp. 107–123.
  • 44. Gürbüz, S., Şahin, F. (2014). Sosyal Bilimlerde Araştırma Yöntemleri. Seçkin Yayınları. Ankara.
There are 44 citations in total.

Details

Primary Language Turkish
Subjects Health Care Administration
Journal Section Research Article
Authors

Levent Yücel 0000-0002-1774-1855

Gül Banu Dayanç Kıyat 0000-0001-7028-0675

Publication Date December 1, 2020
Acceptance Date October 12, 2020
Published in Issue Year 2020 Volume: 7 Issue: 4

Cite

APA Yücel, L., & Dayanç Kıyat, G. B. (2020). Ürün farklılaştırma stratejisinin inovasyon üzerindeki etkisi: Özel hastanelerde bir uygulama. Sağlık Akademisyenleri Dergisi, 7(4), 273-283.
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