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KMID : 0358120020280020127
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Journal of the Korean Public Health Association
2002 Volume.28 No. 2 p.127 ~ p.136
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The Relationship between Market Orientation and Strategic Position and Its Impact on Hospital Business Performance
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Kim Pyug-Wung
Yoo Kyu-Soo
Lee Yong-Ki
Kim Moon-Ju
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Abstract
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The purpose of this study is to prove that market orientation and strategic positioning are the main factors for obtaining a competitive advantage among hospitals, and to find out the co-relationship between market orientation and strategic positioning (strategic differentiation, low-cost strategy/lowering price) among the selected hospitals. First, the analysis of co-relationship between market orientation and differentiation strategy (drawing a distinction from others providing specialized care), the market orientation is more effective on co-relationship compared to the differentiation strategy. Second, among market orientation, differentiation strategy and the low-cost strategy (lowering price), the differentiation strategy is the most effective on the hospital´s performance while the market-orientated efforts came in second, and the low-cost strategy was last. Third, in the relationship between market orientation and the effect on the hospital´s performance, there was no co relationship among the market orientation, differentiation strategy and the low-cost strategy, however, only the differentiation strategy proved to be playing an intermediary role.
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KEYWORD
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Market orientation, Strategic positioning(strategic differentiation, lowcost strategy), Hospital Business Performance
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