Mediation effect of dynamic capability in the relationship between knowledge management and strategic leadership on organizational performance accountability

Abstract

PurposeThis study aims to examine and assess the effect of knowledge management and strategic leadership on performance of hospitals by using variables’ mediating effect of dynamic capability.Design/methodology/approachThe population included in this study are all the elements of leadership, i.e. both structural and functional leaders at the four hospitals in Makassar [the central government (Dr Wahidin Sudiro Husodo), Regional General Hospital belonging to the Provincial Government of South Sulawesi (Hospital Labuang Baji and hospitals Hajj) and government hospitals (hospitals belonging Makassar City Government)]. The sample size resulting from the analysis tools included approximately 100 respondents. This research used both structural, i.e. structural equation modeling (SEM), and Sobel tests for assessing the mediation effects.FindingsFirst, dynamic capabilities as a mediation variable in relationship between the knowledge management and performance of hospitals, indicates that higher knowledge management will result in improved hospital performance, if the mediated dynamic capability was also higher. Second, dynamic capabilities as the mediation in the relationship between strategic leadership and hospital performance indicates that a higher strategic leadership will lead to improved hospital performance, if the mediated dynamic capability was also higher.Originality/valueThe results of previous studies on knowledge management in public sector organizations were not sufficiently clear. Moreover, the study of knowledge management in the health services industry also received less attention from previous researchers. This research attempts to fill the gap further by examining the influence of knowledge management on organizational dynamic capability and organizational performance of hospitals. The presence of the mediating variable dynamic capability also differentiates this study from previous studies.