1) Financial & Physical Resources
Financial and physical resources have been considered significant in developing organizational performance (Bourgeois, 1981; Barney, 1991; Kraatz et al., 2001; Short et al., 2002). Financial and physical resources bolster organizational sustainability, allowing them to respond effectively and competitively (Short et al., 2002). These financial and physical slacks can improve organizational outcomes, including HRM, conflict resolution, better workflow, and creative and innovative strategies (Bourgeois, 1981). They can foster organizational innovations as they allow for experimentation, such as launching new products, entering new markets, and offering new services. Previous studies have acknowledged that financial and physical resources positively affect organizational performance (Barney, 1991; Short et al., 2002). They enable hospitals to invest in medical equipment, innovative technology, and modern facilities in the healthcare sector. It can directly impact patient care by facilitating timely diagnoses, more effective treatments, and enhanced patient comfort during their stay.
H1-1: Hospitals with greater financial and physical resources are more likely to provide better quality of care.
H1-2: Hospitals with greater financial and physical resources are more likely to lead to higher patient satisfaction.