A Study of Service Quality, Corporate Social Responsibility, Hospital Image, and Hospital Value Creation in Medan

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  51 ERSJ_Vol.XX.Issue 4B

  European Research Studies Journal Volume XX, Issue 4B, 2017 pp. 125-133

  1 A Study of Service Quality, Corporate Social ideas.repec.org/a/ers/journl/vxxy2017… Unoriginal text: 16 words

  Responsibility, Hospital Image, and Hospital Value Creation

  1

  in Medan Arlina Nurbaity Lubis1*, Prihatin Lumbanraja1, Rodiah Rahmawaty Lubis2 Beby Kendida Hasibuan1 Abstract: Globalization and emerging market created fierce global 2 competition toward healthcare services industry. Retaking 2 public trust required an overhaul of local hospital's value

  [ ] toward for 4 3

  →

  creation. Value is the key concept to win the customer's 3 heart. 4 ideas.repec.org/a/ers/journl/vxxy2017… Unoriginal text: 10 words Overused word: key This paper examined the value-creation based on inpatients 5 Unoriginal text: 33 words as co-creator concept. A second-order analysis was 6 ideas.repec.org/a/ers/journl/vxxy2017… conducted to evaluate the ten aspect of service quality as 7 5 we want to evaluate each's importance factor. 9

  6 Medical personnel is considered as the most important [ ] aspect aspects 10 7

  aspect to deliver services in healthcare industry. Hospital 11 12 8 Repetitive word: evaluate value improved by delivering good services and ideas.repec.org/a/ers/journl/vxxy2017… Unoriginal text: 37 words building hospital image. CSR must improve hospital image 8 to increase hospital value. 9 Overused word: important

  11 [ ] the healthcare

  Keywords: Value-creation, hospital image, CSR, Service 12 Repetitive word: delivering Quality.

  Overused word: good

  Department of Economic and Business, Universitas Sumatera Utara, Medan Department of Medical Study, Universitas Sumateara Utara, Medan email: arlinalubis10@gmail.com This research is under research grant Non-PNBP USU 2017 A Study of Service Quality, Corporate Social Responsibility, Hospital Image, and Hospital Value Creation in Medan 126

  1. Introduction

  14 the value for customers. It also has been viewed as key success factor in marketing approach (Kotler & Keller,

13 A key concept to win customers' heart is through creating

  15

  13 Lusch (2008), firm could not deliver the value itself, but Overused word: key

  offer the value to customers. Customers acted as "co- 14 creator" while realizing the actual value. Thus, one's value

  [ ] a key or the key can only be created by including customers' point of view.

  Edvardsson et al. (2005) proposed a perspective to view a 15 firm's services as value creation process. Since then,

  [ ] 16 the firm or a firm

  services perspective become one of the root in value creation. However, it had not been analyzed in a manner to 17 evaluate the relation between services on a firm's value. 18 We previously stated the existence of ‘creator', which 19 refer to the firm activities, and ‘co-creator', which refer to 20 customer, as the core of create one's value. Firm's 21 22 16 activities viewed as internal process that determine the

  [ ] root roots

  →

  proposition of value. Ronnback et al. (2009) claimed that 17 these internal factors were the central source the destroyed 24 23 Possibly confused word value. Since the services was outsourced , the intended 25 26 18 value was never experienced by the customer.

  [ ] ', ,' 19

  [ ] ', ,' 27 20

  This study aimed to evaluate the role of both firm

  [ ] create creating 21

  activities and customer in value creation process. The firm

  [ ] 28 22 an internal or the internal

  provide services and conduct corporate social

  [ ] determine determines 29

  →

  responsibility (CSR) which aimed to improve the value to its customers. A corporate reputation acted as mediator 30 31 23 in order to achieve the desired value . Globalization 24 Passive voice effect in addition to the newly emerged market of ASEAN

  [ ] was were 25

  Repetitive word: value

  Economic Community (AEC) pushed competition to a new 26 Passive voice level. In healthcare services industry, many people believe 27 in services provided by a firm which perceived as the most

  Unoriginal text: 8 words

  valuable for them. In Indonesian's case, many of its people 28 believe in services provided by other countries than local

  [ ] provide provides 32 33

  →

  services. As result , it will be more benefit to other 34 29 country than Indonesia. Thus, improving local healthcare 35 30 Repetitive word: aimed services value become an important matter. A firm

  [ ] in order to to 36 37 31

  delivered value to customers in order to attract them to

  Repetitive word: value

  product or services provided by the firm. However, the crucial factor of these activities lies on customers' perspective toward the proposed value. Customer will seek for the most valuable one while deciding their product or 38 services consumption. Value creation become more and more important to be analyzed. Local's healthcare services 39

  32 [ ]

  As result As a result

  trust for local services. Lubis et al. (2016)'s work on 33

  Possibly confused word

  service dimension of healthcare services in Indonesia 34

  [ ] other country another country 40

  →

  showed that customers perceived 10 aspects on service 35 Overused word: important quality dimension. However, the previous study did not 36 Repetitive word: value empirically analyze its impact on value creation. The 37

  [ ] in order to to

  →

  current study aimed to evaluate the importance of each aspect of service quality in healthcare in addition to 41 evaluating its impact on value creation.

  2. Healthcare Service Quality Approach 38

  [ ] become becomes

  →

  A.N. Lubis, P. Lumbanraja, R.R. Lubis, B.K. Hasibuan 39 Indefinite article with plural noun 127 42

  40 Service quality approach originally proposed by [ ]

  10 ten 43

  Parasuraman et al. (1985) on five dimension , (1) tangibility, (2) empathy, (3) responsiveness, (4) reliability, and (5) assurance. The basic of service delivered to 44 45 customers were based on these five dimension .

  However, Lubis (2016) expanded the model in accordance 46 41 to inpatients' perspective of hospital's service quality in

  Repetitive word: evaluating

  Indonesia. The previous study categorized service quality based on 10 aspects, namely (1) patient educational services, (2) staff-professionalism, (3) food aspect, (4) assurance, (5) responsiveness and convenience services, (6) empathy, (7) cleanliness, (8) well-educated staff, (9) people 47 trust-gaining services, and (10) reliable services.

  The current study used the ten-dimension of hospital 48 services quality aspect as we conduct the research in 42 Indonesia. The first part of this study aimed to evaluate the 49 50 43 Overused word: originally most important aspect that constructing service quality

  [ ] dimension dimensions 51 52

  →

  as whole . The second part of this study evaluated the effect of service quality on both corporate images and 53 54 44 value. Many of previous study treated service quality 55 56 57 45 Passive voice and corporate images as unrelated variables. 46 these with singular noun However, as we speak of customers, they experienced the

  [ ] to with

  →

  service delivered to them. The experience may build their 58 59 47 information and shape its corporate image.

  2.1 Corporate Social Responsibility Approach Previous work on CSR claimed a four-level of CSR act 60 which grouped to two groups (Schermerhorn, 2016). The 61 62 first one cooperate with law while the other consists of 63 persuasion area which be more voluntary act. Today's social-environment strongly reacted to CSR activities. As 48

  [ ] conduct the research in research

  →

  far as reputation is concerned, CSR will be more likely to 64 improve hospital'scorporate image as long as they 49 Overused word: important conduct the act of CSR. Previous works showed a strong 50 Repetitive word: aspect relationship between CSR and corporate image (Gazzola, 51

  [ ] a whole or the whole

  2014; Susanto, 2012; Giannakopoulou et al., 2016; 52 Repetitive word: evaluated Hapsoro and Suryanto, 2017; Pena-Miguel et al., 2017). 53

  [ ] 65 the previous

  However, CSR may also affecting the organization to 54 66 Repetitive word: study lose its publicimage (Ihlen et al., 2012). As people 55 67 56 Repetitive word: corporate become more aware to ethical behavior, social 57 Repetitive word: images responsibility factor become a bigger factor to be

  Unusual word pair

  considered as strategic tools. Brandão et al. (2012) claimed 58

  [ ] toward of

  that CSR in hospital governance helped to generate the 59

  [ ] the public

  desired value. In today's competitive market, a good CSR practice will improve hospital value for a long term as it is 68 practically improve its effectiveness and efficiency while 69 delivering services. However, Gherghina & Vintia's study (2016) showed that there is no effect of CSR on 70 60 hospital value in form of stakeholder-related CSR but [ ]

  to into 61

  environment-related CSR. Srivastava et al. (2012) warned [ ]

  cooperate cooperates 62

  that CSR could damage corporate value if not managed

  [ ] 63 the law well.

  [ ] a more or the more

  2.2 Healthcare Image Approach 64 72 Misspelled word: hospital'scorporate The concept of corporate image had been widely 71 73 suggested by many studies . In accordance with 74 75 Bromley's work (2001), corporate image can be 76 77 viewed as collective thought or a distribution of opinion among stakeholders about one's 65

  [ ] affecting affect 66

  [ ] to of

  Responsibility, Hospital Image, and Hospital Value

  →

  Creation in Medan 128

  78 79

  entity . Corporate image may also be defined as the 68 Incorrect verb form reflection of one's organization from time to time over the eyes of stakeholders and expressed through their thought 69

  [ ] Vintia's Vinita's

  → and words (Miles and Covin, 2000; Tsitsakis et al., 2014). 80 Many scholars used the definition of embodiment of 70 [ ] in form of in the form of

  →

  people's experience on organization's services (Fombrun, 82 81 1996), however there is no unambiguous definition yet.

  Based on previous work, the corporate images lies on 83 people's thought. Public's thought of the corporate gave the signal of its capabilities and desired performance in 84 85 86 future. It represent corporate attributes as whole and will affect people's behavior toward the organization 87

  (Dolphin, 2004). Corporate images become important to 71 Passive voice create hospital's value based on customer's perspective. 72

  [ ] 73 the corporate [ ]

  In accordance with By 74

  2.3 Healthcare Value

  [ ] 75 the corporate or a corporate 76 Repetitive word: image 88 Passive voice

  Value, in general, is defined as assessment of trade-off 77

  [ ] a distribution

  between cost and benefit or cost-benefit function (Day, 1990; Zeithalm 1988). People tend to evaluate something to be more valuable as they gain more (mostly monetary gain) from other (Gronross and Helle, 2010). Value 89 creation is considered as process to improve the 90 customers' well-being which related to create a better-off situation for the customers. The term of ‘customers' made it clear that fulfill every customers' value is hard to achieve. 78

  [ ] entity Entity

  One person's value to other is different. For example, one 79

  [ ] 91 92 The corporate or A corporate

  may viewed a luxury bed in hospital as value while 93 other do not see its benefit. Previous works showed that value-creation related to customers' experience toward the 94 value proposed by organization . 80

  [ ] an embodiment or the embodiment

  3. Data and Methodology 81

  [ ] , however . However 82

  [ ] however 95

96

  , in Medan were participated in this study. The study used questionnaires to collect the inpatients' thought related to service provided by the healthcare, hospital image, CSR program, and hospital value. The questionnaires were built based on operational variables (Table 1). The study was conducted from January to March 2017.

  Table 1. Operational Variables Variable Name Type of Description Variable Healthcare Value Dependent Inpatients' perceived value of healthcare services based on financial performance, effectiveness, and efficiency services. 97 98 100 99 83 Repetitive word: thought

  94 [ the organization or an organization

  → were participated participated

  → A number of Some

  99 Unoriginal text: 8 words www.networkadvertising.org/sites/def… 100 viewed view

  98 Repetitive word: questionnaires

  [ ]

  ] → 97

  95 [ ] 96 [ hospital hospitals

  ]

  ] 93 Possibly confused word

  84 [ represent represents

  91 [ ] 92 [ the hospital

  ] →

  90 [ create creating

  ]

  89 [ a process or the process

  ]

  88 [ an assessment or the assessment

  ] 87 Overused word: important

  ] → 85 Repetitive word: corporate 86 [ a whole or the whole

  → Service Quality Independent 101

  A multi-dimensional approach of delivering healthcare services Corporate Social Independent Inpatients' opinion toward the healthcare's CSR Responsibility program Healthcare Image Independent, Healthcare's reputation on inpatient's mind Mediator A.N. Lubis, P. Lumbanraja, R.R. Lubis, B.K. Hasibuan 129

  101 [ ] of to

  →

  The data were analyzed using second-order construct dimension of service quality to determine the service quality construct. Bootstrap analysis was used to test the significance of each path.

  3.1 Model Specification

  102 103

  The study aimed for evaluate the construct of service quality and evaluate the factors to improve healthcare value. We proposed the path model based on our objectives 104 (Appendix 1). We also formulated the model to improve healthcare value as follow:

  105

  (1) Where Value represent the healthcare overall 106 perceived value, SERVQUAL represent the perceived 107 service delivered by the healthcare, CSR represent the 108 109 perceived CSR program, and IMAGE represent the healthcare reputation.

  3.2 Validity and Reliability Model

  110

  The structural model's validity was evaluated through 111 convergent and discriminant validity. The convergent 112 validity model was based on each constructs' average extracted variance (AVE) value which should be at least 0.5 (Table 2). The model's discriminant validity was based on Fornel-Lacker Criterion (Hair et al. 2014). The model's 113 reliability was based on internal consistency reliability.

  The value of each constructs' composite reliability should be more than 0.7 (Table 2 and Appendix 2).

  Table 2. Validity and Reliability Criteria Construct AVE Composite Reliability Assurance 0.528 0.848

  Cleanliness 0.737 102

  0.892

  [ ] for to 103

  [ ] evaluate evaluating

  →

  Corporate Image 0.554 104

  0.944

  Repetitive word: improve

  Corporate Social Responsibility 105 0.945

  [ ] represent represents

  →

  0.990 106 107 Repetitive word: perceived Empathy

  [ ] represent represents 108

  Repetitive word: perceived

  0.685 109

  [ ] represent represents

  →

  0.867 Food Aspect 110

  0.852

  Passive voice

  0.945 111 112 Repetitive word: convergent Healthcare Value

  Passive voice

  0.624 0.965

  113

  Patient Educational Services

  Passive voice

  0.596 0.937 Patient Trust 0.707 0.950 Reliable Services 0.627 0.833 Responsiveness and Convenience Services 0.676 0.892

  0.691 0.929 Well-Educated Staff 0.580 0.846 Table 2 showed that the proposed model and indicators had 114 been fully passed the validity and reliability model and 115 may be analyzed furthermore with the estimate 116 analysis

  3.3 Estimate Result The first part of second-order construct analysis was to evaluate the importance of each aspect of service quality in 117 118 healthcare services. We evaluated the importance

  A Study of Service Quality, Corporate Social Responsibility, Hospital Image, and Hospital Value Creation in Medan 130

  119

  based on regression weight of each construct while explaining the service quality construct. Table 3 summarized the regression weight of service quality construct.

  Table 3. Service Quality Construct Construct Regression Weight Service Quality Well-Educated Staff 0.917

  Staff-Professionalism 0.900 Patient Educational Services 0.886 Food Aspect 114

  Overused word: fully

  0.787 115

  [ ] estimate estimated

  →

  Responsiveness and Convenience Services 116

  [ ] analysis .

  0.784 Empathy 0.742 Reliable Services 117

  Repetitive word: evaluated

  0.686 118

  [ ] importance .

  Assurance 0.670 Patient Trust 0.517 Cleanliness 119

  [ ] based Based

  0.094

  → 120

  Table 3 showed that the most important aspect of 121 delivering services in healthcare industry is the staff or 123 122 medical personnel. They play major role to improve 124 service experienced by the inpatients . The medical 125 personnel have to be well-educated and professional to 126 their role . The other aspect was related to the food provided by hospitals. Many of current inpatients commented that the food was far from enjoyable. Based on 127 our result, inpatients pay less attention toward hospital's cleanliness. The second part of our study was to evaluate the value-creation based on co-creator, inpatients, point of view. The proposed model suggested hospital's reputation 128 as mediating variables, thus there should be direct, coefficient of our proposed model.

  Table 4. Direct, Indirect, and Total Effect Independent Dependent Mediator 129 Direct Effect Indirect Effect Total Effect Variable Variable SERVQUAL

  IMAGE 120

  Overused word: important

  0.729* 121

  [ ] 122 the healthcare Overused word: major

  0.729* 123

  [ ] 124 a major or the major 125 To-infinitive instead of prepositional phrase

  CSR

  [ ] have has 126

  Repetitive word: role

  0.195* 0.195* 127

  [ ] toward to

  →

  [ ] , thus . Thus

  →

  SERVQUAL

  IMAGE 0.405* 0.348* 129

  Repetitive word: Direct

  0.752* CSR

  VALUE

  • 0.088 0.093* 0.005

  IMAGE 0.447* 0.447*

  • Significant at level 5% Table 4 showed that both service quality and corporate social responsibility positively affecting hospital's 130 reputation. The effect of service quality on corporate image is dominant. According to the definition of 131 132 corporate image as we stated before, inpatients'

  133

  hospital played major role shaping the hospital's 134 image . The better service provided and experienced by inpatients, the better corporate image will be born. Corporate social responsibility also helped to form the corporate image. As the social environment A.N. Lubis, P. Lumbanraja, R.R. Lubis, B.K. Hasibuan 131

  135

  sensitive to CSR practice, the slightest act of CSR may improve corporate image. Both service quality and CSR provided 67.2% explanation of the corporate image's variance (R-squared = 0.672). Our result showed that in 136 order to improve hospital's value, the hospital should 137 138 pay more attention on creating reputation and 140 139 delivering a good services to inpatients. CSR, 141 however, can only indirectly improving the value 142 through the hospital's brand image. The most important 143 aspect is delivering the service. Inpatients interact with services and assess the value based on their experience toward them. The concept of customer or inpatients as co- creator also supported based on our study. Our model explained 64.3% of hospital value's variance with R- squared of 0.643.

  4. Conclusion This paper gave a deep insight of healthcare services quality. Based on 10-aspect of services quality, most important aspect perceived by the inpatient was related to 144 145 146 human resource. In order to deliver a better service quality, healthcare should improve their staff for both knowledge and how to care with their customers. 148 147 Cleanliness did not serve as important factor for 150 inpatients. The inpatients rather indifferent with their 151 149 room's cleanliness as long as they get a better 152 services and happy with the staff. This paper examined the new paradigm delivering healthcare services quality,

  131 [

  ] 153 the corporate or a corporate

  corporate value. PLS bootstrap indicated that improving

  [ ] 132 a corporate or the corporate [ ] image

  ,

  healthcare corporate value could be reached by 154 155 improving healthcare services and corporate images . 133 CSR program did not directly affect corporate value.

  [ ] 156 157 134 a major or the major

  However, CSR did improve its corporate images 158

  Repetitive word: image

  which indirectly built the corporate value . Thus, corporate should be aware that CSR will do nothing unless 159 public perceived it well while improving corporate image in public's mind.

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  [ ] on to 138

  Corporate Governance

  [ ] 139 a reputation or the reputation [

  ] a good services a good service 140

  Overused word: good 4(3), 77-92. 141 142 Repetitive word: value 143 Overused word: important

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  [ ] 145 the human or a human

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  132 148

  [ ] 149 an important or the important 150 Missing verb 151 Overused word: rather

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  →

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  Repetitive word: corporate

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  Sentence fragment

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  Unoriginal text: 8 words

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  [ ] Inleh Inlet

  → and Business Administration, 2(2), 119-140.

  181

182

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  A.N. Lubis, P. Lumbanraja, R.R. Lubis, B.K. Hasibuan 171

  [ ]

  Governmen Government

  133

  172 [ ] and

  ,

  Appendix 1. Research's path model

  173 [ ]

  Zheitmal Thermal →

  174 www.ersj.eu/index.php?option=com_d… Unoriginal text: 8 words 175

  [ ] Roonback Roorback

  → Appendix 2. Composite Reliability Model 176

  Unoriginal text: 8 words 177

  [ case Case

  ] → 178

  [ a case or the case

  ] 179 Unoriginal text: 5 words www.coursehero.com/file/p3f4fhl/The… 180

  [ reputation Reputation

  ] →

  181 [ and

  ] , 182

  [ Service Dominant Service-Dominant

  ] →

  183 Unoriginal text: 6 words

  184 [ and

  ] ,