INNOVATION AND INQUISITIVENESS AS DRIVERS OF COMPETITIVE ADVANTAGE IN PRIVATE HOSPITALS: EVIDENCE FROM DELTA STATE, NIGERIA

ABSTRACT In the face of escalating competition and resource constraints, private hospitals in emerging economies like Nigeria must leverage internal capabilities to remain competitive. This study explores the role of innovation and inquisitiveness as drivers of competitive advantage in private hospitals in Delta State, Nigeria. Innovation, encompassing technological, administrative, and clinical advancements, enables hospitals to differentiate themselves and improve service delivery. Inquisitiveness, defined as the organizational tendency to seek new knowledge and challenge existing practices, fosters a culture of learning and adaptability. Using data from 80 senior management personnel across 16 private hospitals, the study examines how these two capabilities influence competitive advantage, operationalized as service differentiation, patient responsiveness, and market adaptability. Results from multiple regression analysis indicate that innovation has a significant positive impact on competitive advantage (β = 0.278, p = 0.007), while inquisitiveness, although positively related, does not significantly affect competitive advantage (β = 0.154, p = 0.113). The findings suggest that while innovation contributes to long-term competitiveness, inquisitiveness alone is insufficient without supporting systems. The study concludes by recommending that private hospitals prioritize innovation as a strategic capability, while fostering an environment where inquisitiveness can be institutionalized to support continuous improvement. Keywords: Innovation, Inquisitiveness, Competitive Advantage, Healthcare Management, Dynamic Capabilities JEL Classification: I11; L25; M10; O32 INTRODUCTION In today’s complex and fast-evolving healthcare environment, organizations are increasingly compelled to develop internal capabilities that allow them to anticipate, respond to, and thrive amidst dynamic changes. These changes stem from multiple drivers, including technological advancement, growing patient awareness, demographic transitions, economic constraints, and policy instability (Teece, 2007; Damanpour & Aravind, 2012). In emerging economies like Nigeria, the healthcare sector is characterized by resource shortages, uneven access, infrastructural gaps, and service delivery inefficiencies. As public healthcare continues to face these persistent challenges, private hospitals are under pressure to play a compensatory role. To do so effectively and competitively, they must improve on not only physical infrastructure and medical equipment but also intangible strategic capabilities that support adaptability, learning, and innovation (Barney, 1991; World Bank, 2022)......