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This study investigated the effects of organizational capability and process innovation of healthcare service encounter on operational performance. The research model was proposed based on previous studies. Survey data was collected and analyzed from patients and employees of a participant hospital, a patient and an employee as one set in the hospital. The results indicated that organizational capability affect preliminary process (H1) and response process (H2) on healthcare service encounter. The study also found positive relationships between preliminary process and response process (H3) and result process (H4). The results showed positive effects of response process on result process (H5). In addition, there was positive relationships between result process and operational performance (H6). The findings of the study suggest that hospitals are developing process innovation of healthcare service encounter to improve employees’ task efficiency for patient satisfaction and operational performance.