Behavioural Understanding of Hospital Service Quality: Organisational Learning and Organisational Innovativeness

This study aims to identify the effect between organizational learning and service quality in public hospitals. The theoretical framework is derived based on Behavioral Theory of Firm by Cyert and March (1963) and Donabedian's Healthcare Quality Model. Service quality is discussed as endogenous construct. The Schwandt's organizational learning system model is evaluated as exogenous construct. The unit of analysis consists of clinical and clinical support departments with a sample size of 221 from 23 public hospitals in Peninsula Malaysia. Patients' perception on the departments' service quality is evaluated, and organizational learning and organizational innovativeness are assessed by the department heads in public hospitals. Patients' response data from 884 were aggregated to match the 221 responses of the department head. Structural equation modeling with AMOS and SPSS was applied to analyze data. Findings reveal that all hypotheses are supported. Organizational innovativeness shows a partial mediating effect between learning activity and service quality, and between performing actions and service quality. Service quality provides the organizational performance feedback to improve the learning activity for the human resource development. Thus, this study implies that the need for human resource development is imperative in contributing towards service performance to patients in the public hospitals.