Market orientation, social responsibility, and performance in Korea's healthcare industry

Background: As non-profit organizations, Korean hospitals face significant challenges conducting business activities to maintain their status while meeting demands for social responsibility. In addition, Korea has extremely strict medical advertising laws, so hospitals need to keep searching for creative ways of engaging with the public and local community to sustain their reputation. Purpose: This study examines the dynamics of the three most fundamental elements in healthcare management: market orientation, social responsibility, and hospital performance. Methodology/approach: The three categories of market orientation were examined to verify the effect of hospital social responsibility (HSR) on the relationship between market orientation and hospital performance. The data were collected from a structured survey of 248 hospital managers in Korea using a purposive sampling method. Results: The results show the positive association between market orientation and both HSR and hospital performance. Conclusion: This study shows that the interaction between market orientation and HSR an increase a hospital's long-term sustainability. Practice implications: The results provide new guidance for hospital managers and highlight the importance of a strategic use of HSR in a highly competitive and resource-constrained healthcare industry.