IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v9y2021i5p87-d549410.html
   My bibliography  Save this article

Risk Management and Financial Stability in the Polish Public Hospitals: The Moderating Effect of the Stakeholders’ Engagement in the Decision-Making

Author

Listed:
  • Aldona Frączkiewicz-Wronka

    (Department of Public Management & Social Science, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Tomasz Ingram

    (Department of Entrepreneurship & Management Innovation, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Karolina Szymaniec-Mlicka

    (Department of Public Management & Social Science, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Piotr Tworek

    (Department of Public Management & Social Science, University of Economics in Katowice, 40-287 Katowice, Poland)

Abstract

Public healthcare organizations usually operate under significant financial strain and frequently strive for survival. Thus, in most cases, financial stability is a “holy grail” of public healthcare organizations in general and hospitals in particular. The financial stability itself is partly dependent upon the ability to manage risk associated with hospital actions. In the paper, we seek to address the question related to the moderating role of stakeholders’ engagement in the relationship between risk management practices and a hospital’s financial stability. To answer this question, we designed and carried out empirical research on a sample of 103 out of 274 Polish public hospitals operating at the first-level (closest to the patient). Results show that risk management practices are positively related to financial stability. Hospitals with well-developed risk management practices are better prepared and find appropriate answers to threats, helping them attain financial stability. We also found that stakeholder engagement acts as a moderator of the relationship between risk management practices and financial stability. Research results indicate that with more sophisticated risk management practices, stakeholder engagement in decision-making leads to statistically lower financial stability. On the other hand, high levels of stakeholders’ engagement help when risk management practices are underdeveloped.

Suggested Citation

  • Aldona Frączkiewicz-Wronka & Tomasz Ingram & Karolina Szymaniec-Mlicka & Piotr Tworek, 2021. "Risk Management and Financial Stability in the Polish Public Hospitals: The Moderating Effect of the Stakeholders’ Engagement in the Decision-Making," Risks, MDPI, vol. 9(5), pages 1-23, May.
    • Handle: RePEc:gam:jrisks:v:9:y:2021:i:5:p:87-:d:549410
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/9/5/87/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-9091/9/5/87/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M.G. Mennen & M.C. van Tuyll, 2015. "Dealing with future risks in the Netherlands: the National Security Strategy and the National Risk Assessment," Journal of Risk Research, Taylor & Francis Journals, vol. 18(7), pages 860-876, August.
    2. Lasuli Bakalikwira & Juma Bananuka & Twaha Kaawaase Kigongo & Doreen Musimenta & Veronica Mukyala, 2017. "Accountability in the public health care systems: A developing economy perspective," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1334995-133, January.
    3. Yi Zheng & Wei Wang & Wenbin Liu & John Mingers, 2019. "A performance management framework for the public sector: The balanced stakeholder model," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 70(4), pages 568-580, April.
    4. Arnaud Banoun & Lucas Dufour & Meena Andiappan, 2016. "Evolution of a service ecosystem: Longitudinal evidence from multiple shared services centers based on the economies of worth framework," Post-Print hal-02009135, HAL.
    5. Ricardo Corrêa Gomes & Joyce Liddle & Luciana Oliveira Miranda Gomes, 2010. "A Five-Sided Model Of Stakeholder Influence," Public Management Review, Taylor & Francis Journals, vol. 12(5), pages 701-724, September.
    6. Kitae Sohn, 2016. "Risk Incomprehension and Its Economic Consequences," Journal of Development Studies, Taylor & Francis Journals, vol. 52(11), pages 1545-1560, November.
    7. Stephen P. Osborne & Zoe Radnor & Tony Kinder & Isabel Vidal, 2014. "Sustainable public service organisations: A Public Service-Dominant approach," Society and Economy, Akadémiai Kiadó, Hungary, vol. 36(3), pages 313-338, September.
    8. Arun A. Elias, 2019. "Strategy Development Through Stakeholder Involvement: A New Zealand Study," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(4), pages 313-322, December.
    9. Richard Burke & Istemi Demirag, 2017. "Risk transfer and stakeholder relationships in Public Private Partnerships," Accounting Forum, Taylor & Francis Journals, vol. 41(1), pages 28-43, March.
    10. Daphne Rixon, 2010. "Stakeholder Engagement in Public Sector Agencies: Ascending the Rungs of the Accountability Ladder," International Journal of Public Administration, Taylor & Francis Journals, vol. 33(7), pages 347-356.
    11. Olivier Borraz, 2007. "Risk and Public Problems," Journal of Risk Research, Taylor & Francis Journals, vol. 10(7), pages 941-957, October.
    12. J. E. Agnew & N. Komaromy & R. E. Smith, 2006. "Healthcare Institution Risk Assessments: Concentration on “Process” or “Outcome”?," Journal of Risk Research, Taylor & Francis Journals, vol. 9(5), pages 503-523, July.
    13. N. Chambers & G. Harvey & R. Mannion, 2017. "Who should serve on health care boards? What should they do and how should they behave? A fresh look at the literature and the evidence," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1357348-135, January.
    14. Stephen Osborne & Taco Brandsen & Valentina Mele & Juraj Nemec & Marieke van Genugten & Sophie Flemig, 2020. "Risking innovation. Understanding risk and public service innovation—evidence from a four nation study," Public Money & Management, Taylor & Francis Journals, vol. 40(1), pages 52-62, January.
    15. Lexin Lin & Claudia Rivera & Marcus Abrahamsson & Henrik Tehler, 2017. "Communicating risk in disaster risk management systems – experimental evidence of the perceived usefulness of risk descriptions," Journal of Risk Research, Taylor & Francis Journals, vol. 20(12), pages 1534-1553, December.
    16. Sowada, Christoph & Kowalska-Bobko, Iwona & Sagan, Anna, 2020. "What next after the ‘commercialization’ of public hospitals? Searching for effective solutions to achieve financial stability of the hospital sector in Poland," Health Policy, Elsevier, vol. 124(10), pages 1050-1055.
    17. Hatem Elleuch & Wafik Hachicha & Habib Chabchoub, 2014. "A combined approach for supply chain risk management: description and application to a real hospital pharmaceutical case study," Journal of Risk Research, Taylor & Francis Journals, vol. 17(5), pages 641-663, May.
    18. Lasse Oulasvirta & Ari-Veikko Anttiroiko, 2017. "Adoption of comprehensive risk management in local government," Local Government Studies, Taylor & Francis Journals, vol. 43(3), pages 451-474, May.
    19. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    20. Brian Hunt, 2010. "Risk and Crisis Management in the Public Sector," Public Management Review, Taylor & Francis Journals, vol. 12(5), pages 747-751, September.
    21. Kenneth M. Amaeshi & Andrew Crane, 2006. "Stakeholder engagement: a mechanism for sustainable aviation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 13(5), pages 245-260, December.
    22. Barbara C. Crosby & John M. Bryson, 2018. "Why leadership of public leadership research matters: and what to do about it," Public Management Review, Taylor & Francis Journals, vol. 20(9), pages 1265-1286, September.
    23. Malfait, S. & Van Hecke, A. & De Bodt, G. & Palsterman, N. & Eeckloo, K., 2018. "Patient and public involvement in hospital policy-making: Identifying key elements for effective participation," Health Policy, Elsevier, vol. 122(4), pages 380-388.
    24. Sophie Flemig & Stephen Osborne & Tony Kinder, 2016. "Risky business—reconceptualizing risk and innovation in public services," Public Money & Management, Taylor & Francis Journals, vol. 36(6), pages 425-432, September.
    25. Djellouli, Nehla & Jones, Lorelei & Barratt, Helen & Ramsay, Angus I.G. & Towndrow, Steven & Oliver, Sandy, 2019. "Involving the public in decision-making about large-scale changes to health services: A scoping review," Health Policy, Elsevier, vol. 123(7), pages 635-645.
    26. Andreas Klinke & Ortwin Renn, 2012. "Adaptive and integrative governance on risk and uncertainty," Journal of Risk Research, Taylor & Francis Journals, vol. 15(3), pages 273-292, March.
    27. Szymaniec-Mlicka Karolina, 2017. "The decision-making process in public healthcare entities – identification of the decision-making process type," Management, Sciendo, vol. 21(1), pages 191-204, May.
    28. Banoun, Arnaud & Dufour, Lucas & Andiappan, Meena, 2016. "Evolution of a service ecosystem: Longitudinal evidence from multiple shared services centers based on the economies of worth framework," Journal of Business Research, Elsevier, vol. 69(8), pages 2990-2998.
    29. Tarek Rana & Danture Wickramasinghe & Enrico Bracci, 2019. "New development: Integrating risk management in management control systems—lessons for public sector managers," Public Money & Management, Taylor & Francis Journals, vol. 39(2), pages 148-151, February.
    30. Bert George & Sebastian Desmidt & Julie De Moyer, 2016. "Strategic decision quality in Flemish municipalities," Public Money & Management, Taylor & Francis Journals, vol. 36(5), pages 317-324, July.
    31. John M Bryson, 2004. "What to do when Stakeholders matter," Public Management Review, Taylor & Francis Journals, vol. 6(1), pages 21-53, March.
    32. Yanwei Li & Araz Taeihagh & Martin de Jong & Andreas Klinke, 2021. "Toward a Commonly Shared Public Policy Perspective for Analyzing Risk Coping Strategies," Risk Analysis, John Wiley & Sons, vol. 41(3), pages 519-532, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ariadna Linda Bednarz & Marta Borkowska-Bierć & Marek Matejun, 2021. "Managerial Responses to the Onset of the COVID-19 Pandemic in Healthcare Organizations Project Management," IJERPH, MDPI, vol. 18(22), pages 1-25, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bert George, 2017. "Does strategic planning ‘work’ in public organizations? Insights from Flemish municipalities," Public Money & Management, Taylor & Francis Journals, vol. 37(7), pages 527-530, November.
    2. Francesco Polese & Luca Carrubbo & Francesco Caputo & Debora Sarno, 2018. "Managing Healthcare Service Ecosystems: Abstracting a Sustainability-Based View from Hospitalization at Home (HaH) Practices," Sustainability, MDPI, vol. 10(11), pages 1-15, October.
    3. Thompson-Whiteside, Helen & Fletcher-Brown, Judith & Middleton, Karen & Turnbull, Sarah, 2023. "Emergence in emergency: How actors adapt to service ecosystem disruption," Journal of Business Research, Elsevier, vol. 162(C).
    4. Yanwei Li & Araz Taeihagh & Martin de Jong & Andreas Klinke, 2021. "Toward a Commonly Shared Public Policy Perspective for Analyzing Risk Coping Strategies," Risk Analysis, John Wiley & Sons, vol. 41(3), pages 519-532, March.
    5. Zhou, Dan & Yan, Tingting & Dai, Weiqi & Feng, Junzheng, 2021. "Disentangling the interactions within and between servitization and digitalization strategies: A service-dominant logic," International Journal of Production Economics, Elsevier, vol. 238(C).
    6. Colin Eden & Fran Ackermann, 2021. "Modelling Stakeholder Dynamics for Supporting Group Decision and Negotiation: Theory to Practice," Group Decision and Negotiation, Springer, vol. 30(5), pages 1001-1025, October.
    7. Francesco Polese & Antonio Botti & Mara Grimaldi & Antonella Monda & Massimiliano Vesci, 2018. "Social Innovation in Smart Tourism Ecosystems: How Technology and Institutions Shape Sustainable Value Co-Creation," Sustainability, MDPI, vol. 10(1), pages 1-24, January.
    8. Debbie Isobel Keeling & Kathleen Keeling & Ko Ruyter & Angus Laing, 2021. "How value co-creation and co-destruction unfolds: a longitudinal perspective on dialogic engagement in health services interactions," Journal of the Academy of Marketing Science, Springer, vol. 49(2), pages 236-257, March.
    9. Mele, Cristina & Tuominen, Tiina & Edvardsson, Bo & Reynoso, Javier, 2023. "Smart sensing technology and self-adjustment in service systems through value co-creation routine dynamics," Journal of Business Research, Elsevier, vol. 159(C).
    10. Han, Xiaoyun & Chen, Shuping & Chen, Bing, 2022. "From employee engagement to customer engagement: A multilevel dual-path model of engagement spillover effects in service ecosystems," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    11. Lusch, Robert F. & Vargo, Stephen L. & Gustafsson, Anders, 2016. "Fostering a trans-disciplinary perspectives of service ecosystems," Journal of Business Research, Elsevier, vol. 69(8), pages 2957-2963.
    12. Monia Castellini & Vincenzo Riso, 2020. "Risk Management and Management Control System, a close relationship in process: Isomorphism in the Italian Municipalities," Working Papers 2020039, University of Ferrara, Department of Economics.
    13. Alessia Anzivino & Marta Galli & Roberta Sebastiani, 2021. "Addressing Tensions and Paradoxes in Sustainable Wine Industry: The Case of the Association “Le Donne Del Vino”," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    14. McColl-Kennedy, Janet R. & Cheung, Lilliemay & Coote, Leonard V., 2020. "Tensions and trade-offs in multi-actor service ecosystems," Journal of Business Research, Elsevier, vol. 121(C), pages 655-666.
    15. Lu, Jinfeng & Dimov, Dimo, 2023. "A system dynamics modelling of entrepreneurship and growth within firms," Journal of Business Venturing, Elsevier, vol. 38(3).
    16. Olunifesi Adekunle Suraj, 2016. "Managing Telecommunications for Development: An Analysis of Intellectual Capital in Nigerian Telecommunication Industry," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-30, March.
    17. Soufiane Mezzourh & Walid A Nakara, 2009. "Governance and innovation : A Knowledge-based approach [La gouvernance de l'innovation : une approche par la connaissance]," Post-Print halshs-01955966, HAL.
    18. M. Max Evans & Ilja Frissen & Anthony K. P. Wensley, 2018. "Organisational Information and Knowledge Sharing: Uncovering Mediating Effects of Perceived Trustworthiness Using the PROCESS Approach," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-29, March.
    19. Chris Kimble & José Braga Vasconcelos & Álvaro Rocha, 2016. "Competence management in knowledge intensive organizations using consensual knowledge and ontologies," Information Systems Frontiers, Springer, vol. 18(6), pages 1119-1130, December.
    20. Maurizio Zollo, 1998. "Strategies or Routines ? Knowledge Codification, Path-Dependence and the Evolution of Post-Acquisition Integration Practices in the U.S. Banking Industry," Center for Financial Institutions Working Papers 97-10, Wharton School Center for Financial Institutions, University of Pennsylvania.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:9:y:2021:i:5:p:87-:d:549410. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.