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Publications Repository
Gdańsk University of Technology

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Responsive and proactive market orientation and hospital financial performance: The mediating effect of service program innovativeness

PURPOSE: The study aims to investigate the direct and indirect relationships among market orientation, service program innovativeness, and the financial performance of hospitals. Two types of market orientation – responsive and proactive – were considered, along with two dimensions of service program innovativeness: meaningfulness and novelty. METHODOLOGY: T he study gathered data through a survey conducted on a random sample of 204 Polish hospitals. Structural equation modeling was used to analyze the data, test a conceptual model designed as a parallel two-mediator model, and validate the hypotheses. FINDINGS: The work revealed both direct and indirect effects. In terms of direct effects, the study found that implementing a responsive market orientation positively influences the meaningfulness of a hospital’s service program but has no impact on its novelty. Conversely, the implementation of a proactive market orientation has a positive influence on both the meaningfulness and novelty of the program. Furthermore, the meaningfulness and novelty of the program contribute positively to the hospital’s f inancial performance. In terms of indirect effects, the study identified mediation phenomena: a responsive market orientation positively affects a hospital’s financial performance through the meaningfulness of the service program, while a proactive market orientation enhances financial performance through the novelty of the program. IMPLICATIONS: The study contributes to the current understanding, confirming the positive impact of a proactive market orientation on innovations within the organization while contradicting the view that a responsive market orientation supports these innovations. Additionally, the results support the idea that innovations within the organization have a positive impact on its outcomes. The study also reveals specific mechanisms that influence market orientation on organizational outcomes, indicating that a responsive orientation affects a service provider’s outcomes through the meaningfulness of its service program, while a proactive orientation influences outcomes through the novelty of the program.

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