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Abstract: The main objective of this study is to analyze the influence of Innovation
Capabilities, Core Competencies, and Organizational Culture on the
Organizational Performance of Indonesian Army Hospitals, mediated by Strategic
Flexibility.
Research method, this study employed a quantitative approach using causal
research design. The population consisted of structural personnel from fourteen
Level II Indonesian Army Hospitals, totaling 476 individuals. A sample of 224
respondents was selected using purposive sampling. Data were collected through
a structured, closed-ended questionnaire distributed via Google Form. The data
were analyzed using Structural Equation Modeling (SEM) with SmartPLS version
3.0.
The results reveal that Innovation Capabilities, Core Competencies, and
Organizational Culture have a positive and significant influence on
Organizational Performance, both directly and indirectly through Strategic
Flexibility. Furthermore, Strategic Flexibility has a positive and significant
impact on Organizational Performance and serves as a mediating variable between
the independent variables and performance outcomes.
This study provides valuable managerial implications, especially for hospital leadership, by emphasizing the importance of fostering innovation, enhancing core competencies, and cultivating an adaptive organizational culture to support strategic flexibility. These internal capabilities are crucial for improving competitiveness and the effectiveness of healthcare services within the Indonesian Army Hospitals. However, the study is limited to the Army Hospital context and does not include comparisons with other healthcare institutions. Additionally, the exclusively quantitative approach limits deeper exploration of qualitative organizational behaviors.
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