Critical Factors Influencing Innovation in Thai Hospitals

Abstract

Healthcare service is a major component of the Thai economy since revenue from hospital services has increased and is expected to grow continually. Hospitals face a dramatic increase in competition, rapid technology development and changing customer demands. Those challenges require all hospitals to develop to survive in the business world.

Innovation is broadly seen as an essential component of development and competitiveness embedded in services quality, organizational structures and marketing methods. An understanding of the factors that drive hospitals to develop innovations remains an important phenomenon of interest. Therefore, the main objective of this study is to investigate the factors influencing innovation in hospitals established in Thailand.

The study clarifies the influence variables for innovation development. A five-point Likert scale was used for rating the variables. A total of 1,000 questionnaires were distributed to the hospital industry with 165 returns representing a 16.50% response rate. A theoretical framework is empirically tested identifying the relationships between factors and innovation development through a multiple regression analysis.

The result revealed four key elements; human resource development, customer relation, external relationship and acquiring technology, as influential factors in promoting a hospital’s innovation development. This study also found the positive relationship between innovations and hospital performance.