THE IMPACT OF STRATEGICAL INNOVATION AND TECHNOLOGICAL ADVANCEMENT ON ORGANIZATIONAL PERFORMANCE WITH THE MEDIATING ROLE OF TALENTED PEOPLE IN MEDICAL INDUSTRIES IN CHINA

Abstract

Purpose: This study examines how strategic innovation and technological advancement affect organizational performance in China's medical industry, with a focus on the mediating role of talented people. Drawing on the Technology Acceptance Model (TAM) and Resource-Based View (RBV), we develop a model in which strategic innovation and technological advancement drive organizational performance, both directly and indirectly through talented people as a mediator. The context includes both public and private medical institutions in China, addressing a gap in understanding sectoral differences.

Method: A cross-sectional survey design was employed, collecting data from medical industry organizations in China (both public hospitals and private healthcare institutions). A structured questionnaire measured the core constructs using validated scales from recent literature. A total of 320 valid responses were analyzed (160 from public and 160 from private institutions). We utilized Structural Equation Modeling (SEM) to evaluate the measurement model (validity and reliability of constructs) and to test hypothesized relationships. Model fit indices and mediation analyses (using bootstrapping) were conducted to assess the structural model.

Findings: The results indicate that strategic innovation and technological advancement both have significant positive effects on organizational performance (β = 0.22 and β = 0.30, p < 0.01, respectively). The presence of talented people (i.e., a highly skilled and capable workforce) strongly predicts organizational performance (β = 0.48, p < 0.001) and mediates the effects of innovation and technology. Strategic innovation and technological advancement show significant positive relationships with talented people (β = 0.41 and β = 0.36, p < 0.001), and through talented people these factors exhibit indirect effects on performance. Mediation analyses confirm that talented people partially mediate the impact of both strategic innovation and technological advancement on performance (indirect effects significant at p < 0.01). The model explains a substantial portion of variance in the mediator (R² = 0.44) and in organizational performance (R² = 0.58). The Technology Acceptance Model (TAM) perspective is supported: technological advancement yields performance gains largely when employees (talented people) perceive the new technologies as useful and easy-to-use, thus embracing them. No significant differences are observed between public and private institutions in the structural relationships, suggesting the model’s robustness across sectors.

Originality: This research is among the first to integrate strategic innovation, technological advancement, and human talent in a unified model within the Chinese healthcare context. It extends TAM to the organizational level by linking technology adoption to firm performance via employee capabilities, and applies RBV to show human talent’s mediating role in converting innovation into performance. The findings contribute to innovation management literature by highlighting that merely investing in new strategies and technologies is insufficient—developing and leveraging talented personnel is crucial to realize performance benefits. The study offers practical insights for hospital administrators and policy-makers on fostering innovation-friendly cultures and talent development to boost organizational performance in healthcare.