SMART INNOVATION AND TECHNOLOGICAL EVOLUTION AS CATALYSTS FOR NEXT-GENERATION ORGANIZATIONAL PERFORMANCE – EVIDENCE FROM CHINA’S HEALTHCARE TRANSFORMATION

Abstract

Purpose: This study examines how the adoption of smart innovations and the evolution of technological capabilities act as catalysts for next-generation organizational performance in China’s transforming healthcare sector. Drawing on the Technology Acceptance Model (TAM), Dynamic Capabilities theory, and Institutional theory, we develop a multi-level framework to understand the effects of digital innovation on hospital performance, including the mediating role of technology acceptance and the moderating influence of dynamic capabilities under the context of national healthcare policies.

Method: A quantitative research design was employed, collecting survey data from senior administrators and healthcare professionals across major Chinese hospitals. Publicly available data on hospital innovation and performance were also incorporated to triangulate findings. The final sample included data from 85 hospitals nationwide. We used structural equation modeling (SEM) – specifically Partial Least Squares (PLS) – to test the proposed conceptual model. Model fit indices, R-square values, reliability and validity tests (Cronbach’s alpha, composite reliability, AVE), and path coefficients were analyzed to validate the hypotheses.

Findings: The results reveal that both smart innovation adoption and higher technological evolution (digital maturity) in hospitals have significant positive effects on organizational performance (β ≈ 0.3–0.4, p< 0.01). Technology acceptance by medical staff and patients emerged as a significant mediator in these relationships, indicating that innovations yield the strongest performance gains when users perceive them as useful and easy to use. Dynamic capabilities were found to significantly moderate the innovation–performance link, with organizations possessing greater adaptive capabilities deriving substantially more performance benefits from new technologies. Additionally, supportive national policies and institutional pressures were positively associated with greater adoption of healthcare innovations, underlining the important contextual role of China’s health reform initiatives.

Originality/Implications: This research is among the first to integrate TAM, Dynamic Capabilities, and Institutional perspectives to examine healthcare digital transformation at an organizational level in China. It provides empirical evidence that next-generation performance outcomes (e.g. improved efficiency, service quality, and patient satisfaction) are achieved through not only the introduction of smart technologies but also through ensuring user acceptance and organizational adaptability. Policy-wise, the findings confirm that China’s top-down digital health initiatives are effective in spurring innovation and performance gains. The study offers theoretical contributions by bridging individual-level technology acceptance with organizational capability and institutional context, and provides practical guidance for hospital leaders and policymakers on maximizing the returns of digital health innovation.