Abstract

AbstractThis study examines the effects of operational innovation and quality management (QM) practices on organizational performance in healthcare organizations. More specifically, this study explores relationships of operational innovation and QM practices on organizational performance. The proposed research model was tested using structural equation modeling through a set of hypotheses, based on the data collected from 239 hospitals each with more than 100 beds. The results indicated positive effects of operational innovation on QM practices which eventually had a positive impact on organizational performance. The study also found positive relationships between process improvement and the medical IT system and QM practices. In addition, the results showed positive effects of quality improvement and safety practices on organizational performance.

Highlights

  • Today the healthcare industry is under a great deal of pressure to reduce healthcare costs [1,2,3]

  • This study proposed a research model to investigate how operational innovation influences quality management (QM) practice and organizational performance for health-care organizations

  • The findings of the study revealed that process improvement and medical information technology (IT) systems as part of operational innovation are associated with improved quality improvement (.291) and improved safety practices (.281)

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Summary

Introduction

Today the healthcare industry is under a great deal of pressure to reduce healthcare costs [1,2,3]. To reduce cost, healthcare providers need to first innovate their business processes to become more efficient Such innovation efforts should focus on the effective application of medical information technology (IT) systems and quality management (QM) practices. Healthcare providers invest a great deal of financial and human resources to promoting innovations through purchasing medical devices and medical technology and systems to saving medical cost, and training staff to preventing medical errors and improving processes. Such innovations help achieve operational efficiency and quality management practices, which in turn are expected to improve organizational performance [8]

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