Manager's perceptions of hospital capabilities: A theoretical and empirical study

The management literature has explored and recognized that managers' perceptions of their hospitals' external conditions or environment are important antecedents to effective strategic choices and, therefore, superior performance. We have less understanding, however, of the relationship between managers' perceptions of their hospitals' internal conditions called capabilities and performance. This study draws from organizational theories to suggest that, due to the unique nature of capabilities, assessment of managers' perceptions of capabilities is also important to shaping strategy. An extensive field study identifies capabilities and explores relationships between managers' perceptions of capabilities and an objective measure of hospital success.