Since the COVID-19 pandemic hit, technological developments have urged the health industry to adopt digital health services. Moreover, the Health Digital Transformation Strategy Blueprint 2024 issued by the Ministry of Health of the Republic of Indonesia (Kemenkes RI) creates institutional pressure for private hospitals in Indonesia to update their strategies to survive in a dynamic environment. Many health service providers have now developed telehealth to create contactless services, such as virtual visits, chatbots, and health applications to deliver medicines to patients.
However, along the way, private hospitals have faced a number of challenges in digital health transformation. According to Dr. Erwin Tenggono, who raised this case in his dissertation research at the Management Science Doctoral Program, Faculty of Economics and Business (FEB) Universitas Indonesia (UI), some of these challenges include data that is not integrated between primary and secondary health services, a lack of human resources in the health sector, and the lack of an integrated system for using digital health. Gratitude to the research entitled “The Influence of Institutional Pressure and Dynamic Managerial Capabilities on Strategic Newness: The Case of Strategic Agility and Digital Readiness as Mediator in the Health Industry”, Dr. Erwin Tenggono succeeded in obtaining a Doctorate from FEB UI.
On the other hand, the digital transition increases the need for strategic updates to business models, collaboration, and hospital culture. Dr. Erwin looks at the role of competition and government pressure in influencing resources so hospitals can build solid management teams to adapt to change. He also reviews and sees that dynamic managerial capabilities can influence digital readiness to drive strategic newness and build relationships with new business partners.
Institutional pressures, driven by competitive dynamics in the healthcare industry, force hospitals to implement digital healthcare services to meet customer demands. This pressure affects hospitals’ strategic agility, for example, by forming integrated teams to create health product services that involve all work units. Institutional pressure also forces hospitals to increase digital readiness by cultivating employees’ digital skills to innovate in the digital health landscape.
Meanwhile, dynamic managerial capabilities are important in forming strategic agility and digital readiness in hospital management. Effective hospital managers, equipped with entrepreneurial skills, play a crucial role in identifying business opportunities, fostering integration among management teams, and facilitating flexible relationships between work units and businesses, enabling hospitals to expand their digital health product services.
According to Dr. Erwin, digital readiness can mediate the influence of institutional pressure on strategic newness. “Digital readiness influences strategic novelty because the level of seriousness of hospital management in implementing digital health services is very dominant, especially when employees have the digital skills required to understand good risk management and the hospital is open to innovation. All aspects of digital readiness influence hospitals to carry out strategic innovation by building new partnerships, developing new digital ideas to resolve existing conflicts, and forming a digital culture within the organization,” said Dr. Erwin.
In the promotion trial, Dr. Erwin was declared to have graduated with the title Summa Cum Laude and became the 336th doctor of the FEB UI Postgraduate Management Science Program. The Doctoral Promotion session on Friday (22/3) at the FEB UI Postgraduate Building was chaired by Professor Nachrowi Djalal Nachrowi, Ph.D. The promoter at the open session was Budi W. Soetjipto, Ph.D., with co-promoter Dr. Lily Sudhartio, M.Sc. The examining team is chaired by Prof. Sari Wahyuni, Ph.D., and members Dr. Setyo Hari Wijanto, M.M.; Ratih Dyah Kusumastuti, Ph.D.; Riani Rachmawati, Ph.D.; and Dr. Darwin Cyril Noerhadi, M.B.A.
