Business Perspectives and Research, Ahead of Print.
This study interprets the development and validation of the organizational capacity assessment tool, which is designed to evaluate the gaps in capabilities of hospitals across India. This assessment tool was tested on 300 managers working in hospitals across 16 states of India, with a majority coming from small-sized hospitals. The 40-item measure assessed six factors of organizational capabilities, namely, organizational foundation, organizational resources, organizational capacities, core task implementation, benefits and impacts, and external relations. Gaps in the capacities were identified. Internal consistency was evaluated using the Cronbach’s alpha. Confirmatory factor analysis supported the inclusion of the items in the questionnaire. In addition, structural equation modeling was conducted to evaluate the goodness of fit of the model demonstrating the relationships between the study variables. It was found that individual factors such as core task implementation and organizational foundation significantly influenced benefits and impacts as well as external relations. Similarly, organizational resources positively impacted evaluation capacity outcomes. In contrast, organizational capacity had no significant influence on either benefits and impacts or external relations. This study only validates the capacity assessment tool; however, it needs to be measured with varied types of work personnel within the healthcare sector as there is a huge diversity in the work force of this area. Based on this empirical study, many future research implications were suggested.