The Role of Medical and Nursing Committees in Mediating the Effect of Market Orientation and Marketing Strategy on Regional Public Hospital Performance, in Southeast Sulawesi

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La Ode Kamalia, Alida Palilati, Endro Sukotjo, La Hatani


This study was intended to prove and explain the effect of market orientationon marketing strategy, medical and nursing committees, as well as Regional Public Hospital (RPH) performance. Furthermore, the research aimed to examine and explain the role of medical and nursing committees in mediating the effect of market orientation and marketing strategy on the RPH performance. The study design was explanatory, while data collection was conducted using a survey method. This study’s unit analysis involved executive managers, both structural and functional, in RPHswithin Southeast Sulawesi Province. In addition, the number of samples were determined using a Slovin formula, and selected with a stratified proportional random sampling technique, to obtain a total number of 219 people. Subsequently, data analysiswas performed using a Partial Least Square (PLS) method. According to the results, the implementation of the best market orientation has significantly contributed to an increase in the performance of marketing strategy, medical committee, nursing committee, and RPHs. The marketing strategy had a positive and significant effect on the medical committee and nursing committee, but did not contribute significantly to RPH performance. Furthermore, the nursing committee had a significant effect on increasing RPH performance. However,the medical committee did not contribute significantly to the RPH performance. Finally, the nursing committee has the capacity to serve as the complete mediation for the effect of marketing strategy and RPH performance,as well as a  partial mediation for the effect of market orientation and RPH performance. Furthermore, the medical committee did not play the important role as the mediation for the effects of market orientation and marketing strategy on RPH performance. Therefore this study’s practical implicationsto provide knowledge about the conceptual integration of the structural relationship and the importance of marketing strategy aspectin RPH management, through referral system orientation, physical evidence strategy, professional quality, and the market share. This study’s originality proves the conceptual model integrated into the effect of market orientation, had positive and significant effects on marketing strategy, medical committee, nursing committee, and RPH performance, both through the mediation by medical as well as nursing committees.

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