The Role of Middle Management in Building Sustainability Competitive Advantage Through Organization Capability in District Hospitals Banyuwangi: Cross Level Analysis Approach

Abstract

In the competitive healthcare industry, organizations, including hospitals, strive for sustainable advantages. Key to this is organizational capability, managing resources, processes, and innovation toward strategic goals. This study analyzes how middle management involvement affects these capabilities. Conducted in Banyuwangi's hospitals, it employed a descriptive cross-sectional method, using literature, observation, and questionnaires. Data analysis via SEM PLS showed middle management involvement and autonomy positively influence organizational capabilities. Competency intensity mediates this relationship. Organizational capabilities also positively impact sustainable competitive advantage. Inertial organizations mediate capabilities towards this advantage. These findings highlight the critical role of middle management in enhancing organizational capabilities for sustainable competitiveness in the healthcare sector.