The overall objective of this article is to identify the strategic types of Korean hospitals in terms of Porter`s framework and to examine differences in performance of the hospitals across strategic types. A survey was conducted through structured qu...
The overall objective of this article is to identify the strategic types of Korean hospitals in terms of Porter`s framework and to examine differences in performance of the hospitals across strategic types. A survey was conducted through structured questionnaire for 739 hospitals in Korea and the data from 120 hospitals were utilized in the final analysis. Study results indicate that the most frequently used strategy was `stuck-in-the-middle strategy`(26.7%), followed by `focused cost leadership strategy`(24.0%), `focused differentiation strategy`(20.8%), `cost leadership strategy`(15.8%), and `differentiation strategy`(13.7%). Overall, `focused differentiation strategy` showed superior performance in terms of profitability of services, ability to retain patients and growth in revenue, while `differentiation strategy` produced relatively low performance in general. Implications of these findings are also discussed.