Role of Marketing Strategy in the Relationship between Market Orientation and Hospital Performance (A Study of the Regional Public Hospital (RSUD) in Southeast Sulawesi Province)

The purpose of this paper is to explore the impact of market orientation on the marketing strategy and hospital performance and to explain the role of marketing strategy as mediator for the relation between market orientation and hospital performance. Design of this research was an explanatory, whereas data collection used a survey method. Unit analysis of this research was executive manager in Regional Public hospital in Southeast Sulawesi province of both structural and functional managers. The numbers of sample were determined by a Slovin formula and were selected with a proportional stratified random sampling technique. Therefore the numbers of samples of this research were 291 peoples. Data analysis used a Partial Least Square (PLS). The results of this research shown that the implementation of the best market orientation have a significantly contributed to increase the marketing strategy and hospitals performance. The marketing strategy had positive and significant effect on the performance of hospitals. Finally, marketing strategies becomes a partial mediation relationship between market orientations on hospitals performance. The practical implications of this research are to provide knowledge understanding of the conceptual integration of structural relations and the importance of aspects market orientation and marketing strategy in the management of hospitals through a referral system orientation, product (services) strategy and market share. Originality of this research proves the conceptual model which integrated into the effect of the market orientation which had positive and significant effect on the marketing strategy and hospitals performance, marketing strategy on hospitals performance, as well as through the influence of the mediation role of the marketing strategy