Title: How operational capability affects hospital performance? Role of environmental turbulence

Authors: Hardeep Chahal; Mahesh Gupta; Madhu Bala; T.C. Edwin Cheng

Addresses: Department of Commerce, University of Jammu, Baba Saheb Ambedkar Road, Jammu Tawi (J&K)-180006, India ' Department of Information Science, Analytics and Operations, College of Business, University of Louisville, Louisville, KY, 40292, USA ' Department of Commerce, Government Degree College, Kishtwar, J&K, India ' PolyU Business School, The Hong Kong Polytechnic University, 11 Yuk Choi Road, Hung Hom, Kowloon, Hong Kong

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.

Keywords: operational capability; OC; environmental turbulence; performance; hierarchical regression analysis; hospital industry.

DOI: 10.1504/IJSOM.2024.142012

International Journal of Services and Operations Management, 2024 Vol.49 No.2, pp.221 - 248

Received: 16 Feb 2022
Accepted: 01 Jul 2022
Published online: 07 Oct 2024 *

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