The Effect of Service Innovation Orientation and Open Innovation on Innovation Performance of Medium and Small Private Hospitals in India

Abstract

Previous studies have established the relationship between service innovation orientation, open innovation and innovation performance in context of manufacturing firms. However, studies explore service innovation orientation, open innovation and innovation performance in context of medium and small private hospitals are scarce. The main objective of the study is to investigate the relationship between service innovation orientation, open innovation and innovation performance in medium and small private hospitals in India. A quantitative study using cross-sectional survey method was performed and the data were collected from 173 medium and small private hospitals in three northern states in India using purposive sampling. The findings suggest that there is a positive relationship between service innovation orientation and open innovation. It also shows that there is a positive relationship between open innovation and innovation performance. The findings also reveal that open innovation mediates the relationship between service innovation orientation and innovation performance. The study contributes to the understanding of health practitioners and policymakers about the usefulness of service innovation and open innovation to improve the innovation performance of medium and small private hospitals.