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Impact of operational innovations on customer loyalty in the healthcare sector

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Listed:
  • Kwan Soo Hong

    (Keimyung University)

  • DonHee Lee

    (Inha University)

Abstract

This study investigates the effects of operational innovations, such as application of advanced information technology (IT) systems and supported knowledge and skills (SKSs), on care quality and customer loyalty in the healthcare industry. A research model is proposed based on previous studies and examined the relationships among the constructs using the structural equation modeling approach. Research data were collected through a survey of patients and employees of participating hospitals in Korea, with a patient and an employee as one set. The results of the study indicate that operational innovations result in improved customer closeness, which is associated with IT systems usage and SKSs for delivery of quality care, which have a positive impact on patient satisfaction and customer loyalty. Thus, hospital managers should encourage employees to generate new ideas for work efficiency, care quality, customer loyalty, and organizational performance.

Suggested Citation

  • Kwan Soo Hong & DonHee Lee, 2018. "Impact of operational innovations on customer loyalty in the healthcare sector," Service Business, Springer;Pan-Pacific Business Association, vol. 12(3), pages 575-600, September.
    • Handle: RePEc:spr:svcbiz:v:12:y:2018:i:3:d:10.1007_s11628-017-0355-4
    DOI: 10.1007/s11628-017-0355-4
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    2. Santarsiero, Francesco & Schiuma, Giovanni & Carlucci, Daniela & Helander, Nina, 2023. "Digital transformation in healthcare organisations: The role of innovation labs," Technovation, Elsevier, vol. 122(C).
    3. Rossana Piccolo, 2024. "Digitisation, health literacy and health empowerment of older people," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3001-3034, December.
    4. DonHee Lee, 2019. "Effects of key value co-creation elements in the healthcare system: focusing on technology applications," Service Business, Springer;Pan-Pacific Business Association, vol. 13(2), pages 389-417, June.
    5. Jungkun Park & Hoang Tran Phuoc Mai Le & Eklou R. Amendah & Dongyoup Kim, 2021. "A Look at Collaborative Service Provision: Case for Cosmetic Surgery Medical Tourism at Korea for Chinese Patients," IJERPH, MDPI, vol. 18(24), pages 1-20, December.
    6. DonHee Lee, 2020. "Impact of organizational culture and capabilities on employee commitment to ethical behavior in the healthcare sector," Service Business, Springer;Pan-Pacific Business Association, vol. 14(1), pages 47-72, March.
    7. Le Nguyen Hau & Pham Ngoc Thuy, 2022. "Enabling customer co-creation behavior at a distance: the case of patients using self-monitoring handheld devices in healthcare," Service Business, Springer;Pan-Pacific Business Association, vol. 16(1), pages 99-123, March.
    8. Vicky Ching Gu, 2023. "How independent should a board be? Examine the corporate social responsibility performance in the US healthcare sector," Service Business, Springer;Pan-Pacific Business Association, vol. 17(3), pages 695-721, September.

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