Government regulations and stakeholders entrepreneurial orientation in achieving organizational performance: An empirical study on private hospitals in Indonesia

Abstract

The purpose of this study is to measure the impact of institutional environment as government regulation and managers' capabilities to maintain the relationship between the stakeholder networks and the entrepreneurial orientation within the context of the hospital industry in Indonesia. The results of data analysis from 105 small and medium private hospitals in the Jakarta city and surrounding areas show that the hospital entrepreneurial orientation was significantly influenced by government policies reflected by the legal certainty and bureaucratic attitudes that assist the implementation of the policies. Besides, it is proven that management capabilities to establish the relationships with many stakeholders, consisting of all existing partners and employees, also affect the growth of entrepreneurial orientation. Finally, the performance of the hospital is proven to be significantly influenced by the entrepreneurial orientation directly and also mediated by business model innovation. The results of this study become paradoxical because it is different from the opinion that the healthcare industry would not have accepted the concept of entrepreneurship.

Government Regulations, Interpreneurial Orientation and Stakeholder Network Capability in Achieving Organizational Performance

“…Based on the results of the partial test for the government regulation variable, the count is 0.008 with a significance value of 0.994> 0.05, so it does not have a significant effect, the stakeholder network capability has obtained a count of 28.111 with a significance value of 0.00 <0.05, so it has a significant effect, entrepreneurial orientation obtained a count of 0.565 with a significance value of 0.574> 0.05, it does not have a significant effect Zacca (2015) that stakeholder network capability utilizes internal and external networks to improve organizational performance. Based on the research results, entrepreneurial orientation does not have a significant effect on organizational performance, this is contrary to the results of research by Dewi et al (2018) which states that entrepreneurial orientation has a positive impact on improving organizational performance.…”

“…Entrepreneurial orientation as a construct of academic studies on the strategymaking process, and involves some policies and practices that guide entrepreneurial decisions and actions in an organization (Taylor, 2013) In the process of making an entrepreneurial strategy, it is an important element to achieve corporate success. Implementation of entrepreneurial strategies as a strategic need for the company, Dewi et al, (2018). Entrepreneurial orientation (EO) has a positive effect on business performance, and network capability (NC) can significantly moderate the relationship between entrepreneurial orientation and business performance, Zhang (2012).…”

influence of market orientation and entrepreneurship orientation in achieving hospital performance

“…When individuals and teams are unhindered by organizational traditions and norms, they can more effectively investigate and champion new ideas. By the results of the study (Dewi et al, 2018) the entrepreneurial orientation of the hospital has a positive effect on improving organizational performance, both directly and through business model innovation. Business model innovation is proven to be the result of entrepreneurial implementation so various types of business model innovation can be found between hospitals based on different types of innovation per subdimensional depending on the choice of each hospital (Amézquita, 2022).…”

The influence of network ties on entrepreneurial orientation in Mexican farmers: An institutional perspective

“…A relevant contribution was to verify that the variables are necessary to include in rural development plans. Both the institutional framework and collaborative networks are part of the environment faced by the farmer and empower them to decide about their business (Dewi et al, 2018), being decisive elements to generate confidence in the environment and reduce the risk of assuming economic responsibilities (He et al, 2020). In this sense, both factors contribute to integrating the production chain to develop a strategic and entrepreneurial vision (Boza et al, 2018).…”

“…However, for the purposes of this research, the moderating effect of institutional pillars on entrepreneurial orientation is calculated, as has already been linked in the literature with other study variables-innovation and entrepreneurial orientation (Guo et al, 2014). Commercial and institutional networks increase when there is a less uncertain environment that protects investment, encourages business activity, and empowers individuals to decide to run a business (Dewi et al, 2018;Monticelli et al, 2017). Institutional pillars are a decisive factor for the properly functioning of work networks because they contribute to building trust between actors and reducing the risk of assuming economic responsibilities (He et al, 2020).…”