Mediation effect of dynamic capability in the relationship between knowledge management and strategic leadership on organizational performance accountability

CITATION

Najmi, K., Kadir, A., & Kadir, M. (2018). Mediation effect of dynamic capability in the relationship between knowledge management and strategic leadership on organizational performance accountability. International Journal of Law and Management, 60(2), 517–529

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ABSTRACT
Purpose – This study aims to examine and assess the effect of knowledge management and strategic
leadership on performance of hospitals by using variables’ mediating effect of dynamic capability.
Design/methodology/approach – The population included in this study are all the elements of
leadership, i.e. both structural and functional leaders at the four hospitals in Makassar [the central
government (Dr Wahidin Sudiro Husodo), Regional General Hospital belonging to the Provincial Government
of South Sulawesi (Hospital Labuang Baji and hospitals Hajj) and government hospitals (hospitals belonging
Makassar City Government)]. The sample size resulting from the analysis tools included approximately 100
respondents. This research used both structural, i.e. structural equation modeling (SEM), and Sobel tests for
assessing the mediation effects.
Findings – First, dynamic capabilities as a mediation variable in relationship between the knowledge
management and performance of hospitals, indicates that higher knowledge management will result in
improved hospital performance, if the mediated dynamic capability was also higher. Second, dynamic
capabilities as the mediation in the relationship between strategic leadership and hospital performance
indicates that a higher strategic leadership will lead to improved hospital performance, if the mediated
dynamic capability was also higher.
Originality/value – The results of previous studies on knowledge management in public sector
organizations were not sufficiently clear. Moreover, the study of knowledge management in the health
services industry also received less attention from previous researchers. This research attempts to fill the gap
further by examining the influence of knowledge management on organizational dynamic capability and
organizational performance of hospitals. The presence of the mediating variable dynamic capability also
differentiates this study from previous studies.



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