Interplay between Networking Capability and Hospital Performance in Indonesia’s Medical Tourism Sector

Abstract

Medical tourism is an industry that is currently developing, but research that focuses on the analysis of supply and institutions as a unit in Indonesia is sparse. This research aims to investigate the variables of digital transformation and resource integration that influence hospital performance, considering the expansion of hospitals’ capacities for networking in medical tourism. A structural equation model is used to evaluate the hypothesis. According to our findings, digital transformation and resource integration both have a beneficial effect on networking capabilities. On the other hand, the implementation of digital transformation does not improve hospital performance. Digital transformation has a good link with hospital performance but has no statistically significant effect on hospital performance. In the meantime, the capabilities of resource integration and networking have a positive effect on the overall operation of hospitals. In a similar vein, the ecosystem of medical tourism helps to improve the connection between a hospital’s networking capabilities and its overall performance. It is anticipated that the findings of this study will serve as a reference for those in the policymaking and healthcare industries to develop medical tourism.

From Digital Platform Capabilities to Firm Performance

“…Similarly, the findings showed a positive relationship between NC and FP which is consistent with previous studies (Akmalia & Astuti, 2022;Cenamor et al, 2019;Ediansyah et al, 2022;Wegner et al, 2023). This finding shows that the leveraged network capability of Saudi firms can facilitate access to diverse resources, discovery of new opportunities, and adaptation to changing market demands, thus improving firms' financial and market performance.…”

“…Moreover, NC played a full mediating role between DPC and FP consistent with the studies of Cenamor et al (2019), Bhatti et al (2022) and Akmalia & Astuti (2022). It is noteworthy that our findings also align with the findings of Ediansyah et al (2022) which also showed NC as a full mediator on digital transformation and FP relationship.…”

“…Similarly, empirical research highlighted that NC boosts both internal and external knowledge sharing among the network partners, which enables firms to identify market challenges and trends and enhances the collaborative decision-making and response processes among partners, thus effectively improving FP (Akmalia & Astuti, 2022;Battistella et al, 2017;Cenamor et al, 2019;Ediansyah et al, 2022;Gonzalez & de Melo, 2018;Wang & Hu, 2017;Wegner et al, 2023).We hypothesize that: H4: There is a positive relationship between NC and FP.…”

“…Some scholars highlight the role of NC in exploiting existing ties and developing new ones to achieve a competitive advantage (Ediansyah et al, 2022;Gulati, 1998;Wegner et al, 2023). Others emphasize the important roles of NC as strategic resources and dynamic capabilities that enable firms to access new and rare resources through alliances and social ties (Akmalia & Astuti, 2022;Parida et al, 2017).…”

“…Extant literature shows that DPC enable improved information sharing and interdependencies within and outside a firm, thus strengthening its NC. These capabilities in turn can enhance a firm's competitive advantage and performance (Bhatti et al, 2022;Cenamor et al, 2019;Ediansyah et al, 2022). Digitally enabled NC also establish and maintain important business relationships among trade partners, allowing firms to better target customers, identify new opportunities, and act upon them based on integrated efforts and knowledge, thus sustaining the competitive advantage and improving their performance (Bhatti et al, 2022;Shu et al, 2018;Wegner et al, 2023).…”