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.