| Abstract: | The federal government and industry leaders view innovation as a potentially fruitful way to improve hospital performance, specifically patient satisfaction. However, translating a hospital's innovation orientation into improved performance is challenging given that important network participants—namely physicians—may possess different aims. Grounded in Relational RBV, this study tests a model linking innovation orientation to patient satisfaction through a pathway of knowledge‐sharing routines (physician partnering and customer relationship management) and complementary capabilities (hospital responsiveness). Further, this study investigates the moderating role of physician employment (a form of governance) by examining hospitals with high and low levels of employed physicians. Structural Equation Modeling results from a paired sample of primary survey and secondary data from 173 acute care hospitals in the USA reveal the following. Hospitals with high levels of employed physicians translate innovation orientation into patient satisfaction by using customer relationship management (CRM) programs to influence hospital responsiveness directly, ultimately leading to patient satisfaction. Hospitals with low levels of physician employment use CRM programs in a fully mediated fashion to inform physician partnering activities, which influence hospital responsiveness, driving patient satisfaction. |
