THE INFLUENCES OF ORGANIZATIONAL INNOVATION ON PRIVATE HOSPITAL PERFORMANCE IN THAILAND

Abstract

            The Thai government has determined a strategy aiming to develop Thailand as a medical hub within the next ten years (between 2017 and 2026). This strategy serves as an important mechanism to drive the country’s economy and transform the country from being a middle-income country to a high-income country. For this strategy to be successful, health management and services need to be enhanced to meet with international standards, thereby creating credibility and increasing the country’s competitive advantages. The objectives of this research were to: 1) study the levels of organizational innovation, and performance of the private hospitals in Thailand; 2) examine the influences of organizational innovation on the performance of the private hospitals in Thailand.This research employed a mixed research methodology combining quantitative and qualitative methods. In the quantitative research part, the sample consisted of 260 executives of the private hospitals in Thailand, selected via a multi-stage sampling. Data were collected with the use of a questionnaire and analyzed with a structural equation model. The research findings showed that: 1) organizational innovation and performance of the private hospitals in Thailand were all rated at a moderate level; 2) organizational innovation had a positive relationship with the performance of the private hospitals in Thailand with a .05 level of statistical significance. These findings can be used as a guideline for the private hospitals in Thailand to improve their performance so that they can gain competitive advantages which enable them to compete with other organizations at a global level. Such ability is in accordance with the strategy to develop Thailand as an international medical hub.