DRIVING BUSINESS PERFORMANCE IN THAI PRIVATE HOSPITALS: LEADERSHIP, MARKET ORIENTATION, INNOVATION, AND COMPETITIVE DYNAMICS
DOI:
https://doi.org/10.14456/aamr.2026.8Keywords:
Transformational Leadership, Market Orientation, Innovation Excellence, Industry Competition, Business PerformanceAbstract
This study investigates the strategic mechanisms driving business performance in Thai private hospitals by examining the complex interplay among transformational leadership, market orientation, innovation excellence, and industry competition. Grounded in Dynamic Capabilities Theory and Service-Dominant Logic, the research rigorously evaluates a moderated mediation structural model. Primary data were collected from 210 healthcare executives through a structured survey and subsequently analyzed using partial least squares structural equation modeling (PLS-SEM). The empirical findings reveal that both transformational leadership and market orientation significantly foster excellence in organizational innovation, which in turn directly and robustly enhances overall business performance. Furthermore, innovation excellence serves as a critical mediating mechanism connecting these internal dynamic capabilities to sustainable firm success. Crucially, the study demonstrates that industry competition positively moderates the relationship between innovation excellence and business performance, indicating that innovative healthcare strategies yield significantly greater competitive advantages in highly contested environments. These findings have vital managerial implications, urging healthcare administrators to actively cultivate visionary leadership and proactive market-sensing cultures to drive sustainable innovation and performance amid escalating competitive pressures systematically.
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