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Performance measurement dimensions in Jordanian private hospitals: organizational and environmental determinants
Ayman Mohammad Aburumman1, Norazlina Ilias1
1Faculty of Business, Economics, and Social Development, Universiti Malaysia Terengganu, Kuala Terengganu, Malaysia.
Purpose:
This study examines how organizational strategy, organizational structure, market competition and environmental uncertainty are associated with the use of performance measurement dimensions (PMDs) in Jordanian private hospitals.
Design/Methodology/Approach:
A quantitative cross-sectional survey was conducted using 187 usable responses from managers representing all 69 private hospitals in Jordan. Data were analysed using partial least squares structural equation modelling (PLS-SEM) with SmartPLS 3.2.9.
Findings:
All four contextual factors were positively associated with the use of PMDs. Market competition showed the strongest association, followed by organizational strategy, environmental uncertainty and organizational structure. The model explained 26.3% of the variance in PMD use (R2 = 0.263), indicating that internal and external contingency factors differ in their relative explanatory relevance.
Practical Implications:
Hospital managers should adopt integrated performance dashboards combining financial, efficiency, effectiveness, flexibility and sustainability measures. PMDs should be aligned with strategic priorities, organizational arrangements and changing environmental conditions. These findings relate to the use of performance information and should not be interpreted as evidence that PMD use necessarily improves hospital performance or patient outcomes.
Originality/Value:
This study extends contingency-based performance measurement research by providing evidence from Jordanian private hospitals. It demonstrates how four established contextual factors differ in their association with the use of multidimensional financial and non-financial performance information in an under-researched healthcare setting.
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