2) Human Resources
With the advent of the knowledge economy, strategic resources, such as human capital, have emerged as the primary source of competitive advantage for organizations (Su et al., 2009). It highlights that employees at every organizational level constitute the resources for an organization’s competitive advantage (Chan et al., 2004). Human resources can possess the training, experience, judgment, intelligence, relationships, and insight of individual managers and workers in an organization (Barney, 1991). Moreover, human resources encompass practical know-how, competencies, educational background, and individual psychometric assessments (Su et al., 2009). With the availability of this skilled labor, organizations find it more feasible to harness the labor pool for enhanced performance (Teodoro & Switzer, 2016). Therefore, recognized as a strategic asset, human resources can play a pivotal role in fostering organizational competitiveness and success (Barney, 1991; Su et al., 2009).
Specifically, in the highly professionalized healthcare sector, the role of human resources has become more significant in improving organizational performance. Skilled and motivated healthcare professionals, including physicians, nurses, and support staff, are essential for delivering high-quality care. Moreover, their efforts contribute to a positive patient experience, fostering satisfaction and trust in the healthcare institution. Prior studies provided empirical evidence that human resources improve hospital outcomes (Lang et al., 2004; Bartel et al., 2014). Thus, we hypothesize that hospitals with greater human resources are positively associated with quality of care and patient satisfaction.
H2-1: Hospitals with greater human resources are more likely to provide better quality of care.
H2-2: Hospitals with greater human resources are more likely to lead to higher patient satisfaction.