IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p3962-d1076366.html
   My bibliography  Save this article

Technology Innovation and Healthcare Performance among Healthcare Organizations in Saudi Arabia: A Structural Equation Model Analysis

Author

Listed:
  • Yusuf O. Akinwale

    (Economics Department, College of Business Administration, Imam Abdulrahman Bin Faisal University, Dammam 31441, Saudi Arabia)

  • Hoda M. AboAlsamh

    (Department of Management, College of Business Administration, Imam Abdulrahman Bin Faisal University, Dammam 31441, Saudi Arabia)

Abstract

The number of people in need of healthcare is increasing over time despite the limited resources available in each country; hence, access to healthcare, quality of healthcare, and cost of healthcare remain contemporary global issues. The limitations of travel and access to healthcare during the global pandemic (COVID-19) have triggered the further search for improved and sustainable healthcare services through technology innovation and digital transformation in the healthcare sector. This study examines the impact of technology innovation on healthcare performance among 241 healthcare organizations in Saudi Arabia. The study utilizes the structural equation model (SEM) method to unravel the nature of technology innovation and its influence on healthcare performance. The results of SEM reveal that innovation efforts, in terms of R&D, training, and the acquisition of new software and acquisition of new medical machinery/equipment, have a significant influence on technology innovation and healthcare performance. Furthermore, the results further indicate that technology innovations measured by mobile technology, digitalization of health records, telehealth/telemedicine and artificial intelligence have great likelihood and significant influence on healthcare performance among the healthcare organizations surveyed. This implies that continuous innovative efforts and spending on various technology innovations would further improve the efficiency and quality of healthcare service which give a competitive advantage to healthcare organizations in Saudi Arabia. Hence, innovation which encompasses all stakeholders should be continuously reinforced in Saudi Arabia’s health policy as this would further strengthen healthcare performance.

Suggested Citation

  • Yusuf O. Akinwale & Hoda M. AboAlsamh, 2023. "Technology Innovation and Healthcare Performance among Healthcare Organizations in Saudi Arabia: A Structural Equation Model Analysis," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:3962-:d:1076366
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/3962/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/5/3962/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Natalia Zhivan & Mark Diana, 2012. "U.S. hospital efficiency and adoption of health information technology," Health Care Management Science, Springer, vol. 15(1), pages 37-47, March.
    2. Ancarani, Alessandro & Di Mauro, Carmela & Gitto, Simone & Mancuso, Paolo & Ayach, Ali, 2016. "Technology acquisition and efficiency in Dubai hospitals," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 475-485.
    3. Arfan Shahzad & Rohail Hassan & Adejare Yusuff Aremu & Arsalan Hussain & Rab Nawaz Lodhi, 2021. "Effects of COVID-19 in E-learning on higher education institution students: the group comparison between male and female," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(3), pages 805-826, June.
    4. Iyanna, Shilpa & Kaur, Puneet & Ractham, Peter & Talwar, Shalini & Najmul Islam, A.K.M., 2022. "Digital transformation of healthcare sector. What is impeding adoption and continued usage of technology-driven innovations by end-users?," Journal of Business Research, Elsevier, vol. 153(C), pages 150-161.
    5. Yusuf Opeyemi Akinwale, 2018. "Descriptive analysis of building indigenous low-carbon innovation capability in Nigeria," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 10(5), pages 601-614, July.
    6. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert & Kayo, Eduardo Kazuo, 2014. "Innovation efforts and performances of Brazilian firms," Journal of Business Research, Elsevier, vol. 67(4), pages 527-535.
    7. Zweifel, Peter, 2021. "Innovation in health care through information technology (IT): The role of incentives," Social Science & Medicine, Elsevier, vol. 289(C).
    8. Thakur, Ramendra & Hsu, Sonya H.Y. & Fontenot, Gwen, 2012. "Innovation in healthcare: Issues and future trends," Journal of Business Research, Elsevier, vol. 65(4), pages 562-569.
    9. Wang, Yichuan & Kung, LeeAnn & Byrd, Terry Anthony, 2018. "Big data analytics: Understanding its capabilities and potential benefits for healthcare organizations," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 3-13.
    10. Yusuf Opeyemi Akinwale, 2020. "Technology innovation and financial performance of MSMEs during Covid-19 lockdown in Dammam area of Saudi Arabia: a case of food and beverage sector," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 12(2), pages 136-152.
    11. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    12. Samwel Macharia Chege & Daoping Wang & Shaldon Leparan Suntu, 2020. "Impact of information technology innovation on firm performance in Kenya," Information Technology for Development, Taylor & Francis Journals, vol. 26(2), pages 316-345, April.
    13. Aloini, Davide & Benevento, Elisabetta & Stefanini, Alessandro & Zerbino, Pierluigi, 2023. "Transforming healthcare ecosystems through blockchain: Opportunities and capabilities for business process innovation," Technovation, Elsevier, vol. 119(C).
    14. Pundziene, Asta & Sermontyte-Baniule, Rima & Rialp-Criado, Josep & Chesbrough, Henry, 2023. "Indirect effect of open innovation on clinical and economic value creation in digital healthcare: A comparative study of European countries," Journal of Business Research, Elsevier, vol. 159(C).
    15. Lepore, Dominique & Frontoni, Emanuele & Micozzi, Alessandra & Moccia, Sara & Romeo, Luca & Spigarelli, Francesca, 2023. "Uncovering the potential of innovation ecosystems in the healthcare sector after the COVID-19 crisis," Health Policy, Elsevier, vol. 127(C), pages 80-86.
    16. Nguyen Thi Canh & Nguyen Thanh Liem & Phung Anh Thu & Nguyen Vinh Khuong, 2019. "The Impact of Innovation on the Firm Performance and Corporate Social Responsibility of Vietnamese Manufacturing Firms," Sustainability, MDPI, vol. 11(13), pages 1-14, July.
    17. Cannavacciuolo, Lorella & Capaldo, Guido & Ponsiglione, Cristina, 2023. "Digital innovation and organizational changes in the healthcare sector: Multiple case studies of telemedicine project implementation," Technovation, Elsevier, vol. 120(C).
    18. Regina Diaz & Raul Montalvo, 2022. "Digital Transformation as an Enabler to Become More Efficient in Sustainability: Evidence from Five Leading Companies in the Mexican Market," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    19. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    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. Kahouli, Bassem & Omri, Anis & Afi, Hatem, 2024. "Technological innovations and health performance: Effects and transmission channels," Technological Forecasting and Social Change, Elsevier, vol. 204(C).

    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. Mohammad Jamal Khan & Sahrish Ahmad & Hasliza Abdul Halim & Noor Hazlina Ahmad, 2022. "The Effect of Service Innovation Orientation and Open Innovation on Innovation Performance of Medium and Small Private Hospitals in India," SAGE Open, , vol. 12(3), pages 21582440221, August.
    2. Kusa, Rafał & Suder, Marcin & Duda, Joanna, 2023. "Impact of greening on performance in the hospitality industry: Moderating effect of flexibility and inter-organizational cooperation," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. Sam Njinyah & Simplice A. Asongu & Sally Jones, 2022. "The role of mobile money adoption in moderating the influence of access to finance in firm performance," Working Papers of the African Governance and Development Institute. 22/075, African Governance and Development Institute..
    4. Minerva Martínez Avila & Juan José García-Machado & Eréndira Fierro Moreno, 2021. "A Multiple Full Mediating Effect in a PLS Hierarchical Component Model: Application to the Collaborative Public Management," Mathematics, MDPI, vol. 9(16), pages 1-19, August.
    5. Mandler, Timo & Sezen, Burcu & Chen, Jieke & Özsomer, Ayşegül, 2021. "Performance consequences of marketing standardization/adaptation: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 125(C), pages 416-435.
    6. Kofi Mintah Oware & Thathaiah Mallikarjunappa, 2021. "Does Technological Innovation Compete or Complement Job Employment? Effect of Technological Innovation and Financial Performance," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 899-922, December.
    7. Paolo Esposito & Zubair Ahmad & Vincenzo Riso & Noman Mustafa, 2024. "Beyond the business case? Retracing the walk of Corporate social responsibility and financial performance relationship in the Oil and Gas sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2211-2224, May.
    8. Pilar Fidel & Walesska Schlesinger & Esposito Emilo, 2018. "EFFECTS OF CUSTOMER KNOWLEDGE MANAGEMENT AND CUSTOMER ORIENTATION ON INNOVATION CAPACITY AND MARKETING RESULTS IN SMEs: THE MEDIATING ROLE OF INNOVATION ORIENTATION," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-26, October.
    9. Abdullah Kaid Al‐Swidi & Joseph F. Hair & Mohammed A. Al‐Hakimi, 2023. "Sustainable development‐oriented regulatory and competitive pressures to shift toward a circular economy: The role of environmental orientation and Industry 4.0 technologies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4782-4797, November.
    10. Liedong, Tahiru Azaaviele & Rajwani, Tazeeb & Lawton, Thomas C., 2020. "Information and nonmarket strategy: Conceptualizing the interrelationship between big data and corporate political activity," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    11. Oscar Malca & Jesús Peña-Vinces & Francisco J Acedo, 2020. "Export promotion programmes as export performance catalysts for SMEs: insights from an emerging economy," Small Business Economics, Springer, vol. 55(3), pages 831-851, October.
    12. Joyce M. Odiachi & Owolabi L. Kuye & Abdul-Hameed A. Sulaimon, 2021. "Driving Organisational Sustainability in the Nigerian Insurance Sector: The Role of Competitive Intelligence," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(1-2), pages 37-54, January-J.
    13. Raimo, Nicola & De Turi, Ivano & Albergo, Francesco & Vitolla, Filippo, 2023. "The drivers of the digital transformation in the healthcare industry: An empirical analysis in Italian hospitals," Technovation, Elsevier, vol. 121(C).
    14. Huynh, Minh-Tay & Nippa, Michael & Aichner, Thomas, 2023. "Big data analytics capabilities: Patchwork or progress? A systematic review of the status quo and implications for future research," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    15. Tortorella, Guilherme Luz & Saurin, Tarcísio Abreu & Fogliatto, Flavio S. & Rosa, Valentina M. & Tonetto, Leandro M & Magrabi, Farah, 2021. "Impacts of Healthcare 4.0 digital technologies on the resilience of hospitals," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    16. Eckhaus, Eyal & Iholkina, Vasylyna & Shkolnik, Eleonora, 2022. "The impact of healthcare executive seniority on implementation of innovative methods of diagnosis and prevention," Health Policy, Elsevier, vol. 126(10), pages 996-1001.
    17. Karim, Mohammed Shamsul & Nahar, Sharmin & Demirbag, Mehmet, 2022. "Resource-Based Perspective on ICT Use and Firm Performance: A Meta-analysis Investigating the Moderating Role of Cross-Country ICT Development Status," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    18. Gueler, Melike Sarah & Schneider, Sabrina, 2021. "The resource-based view in business ecosystems: A perspective on the determinants of a valuable resource and capability," Journal of Business Research, Elsevier, vol. 133(C), pages 158-169.
    19. Aljumah, Ahmad Ibrahim & Nuseir, Mohammed T. & Alam, Md. Mahmudul, 2021. "Organizational Performance and Capabilities to Analyze Big Data: Do the Ambidexterity and Business Value of Big Data Analytics Matter?," OSF Preprints an8er, Center for Open Science.
    20. Tortorella, Guilherme Luz & Fogliatto, Flávio Sanson & Espôsto, Kleber Francisco & Vergara, Alejandro Mac Cawley & Vassolo, Roberto & Mendoza, Diego Tlapa & Narayanamurthy, Gopalakrishnan, 2020. "Effects of contingencies on healthcare 4.0 technologies adoption and barriers in emerging economies," Technological Forecasting and Social Change, Elsevier, vol. 156(C).

    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:jsusta:v:15:y:2023:i:5:p:3962-:d:1076366. 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.