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How operational capability affects hospital performance? Role of environmental turbulence

Author

Listed:
  • Hardeep Chahal
  • Mahesh Gupta
  • Madhu Bala
  • T.C. Edwin Cheng

Abstract

This study expands research on operational capability (OC)-performance in the hospital industry, which has yet to be explored in the operations management literature. It investigates how OC measures, namely efficiency, quality, delivery and flexibility, affect hospital performance (HP) in the presence of environment turbulence (ET). Using survey data from the US hospital industry, we employ hierarchical regression analysis to explore the interactive relationships among environmental turbulence (comprising technology, competition, and market dimensions) and OC strategies (comprising delivery, flexibility, quality, and efficiency), and their effects on performance. The findings highlight the combinatorial nature of environmental turbulence and OC strategies and their effects on performance. We find that flexibility and quality have positive impact on business performance in a non-turbulent environment, while ET moderates the OC efficiency-performance link.

Suggested Citation

  • Hardeep Chahal & Mahesh Gupta & Madhu Bala & T.C. Edwin Cheng, 2024. "How operational capability affects hospital performance? Role of environmental turbulence," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 49(2), pages 221-248.
    • Handle: RePEc:ids:ijsoma:v:49:y:2024:i:2:p:221-248
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