The effect of operational innovation and QM practices on organizational performance in the healthcare sector

This study examines the effects of operational innovation and quality management (QM) practices on organizational performance in healthcare organizations. More specifically, this study explores relationships of operational innovation and QM practices on organizational performance. The proposed research model was tested using structural equation modeling through a set of hypotheses, based on the data collected from 239 hospitals each with more than 100 beds. The results indicated positive effects of operational innovation on QM practices which eventually had a positive impact on organizational performance. The study also found positive relationships between process improvement and the medical IT system and QM practices. In addition, the results showed positive effects of quality improvement and safety practices on organizational performance.