The influence of managerial innovative capabilities and authentic leadership on financial performance with organizational climate as a moderator in Indonesian public hospitals

Abstract

This study investigates the influence of managerial innovative capabilities and authentic leadership on financial performance, with organizational climate as a moderating variable in Indonesian hospitals. The increasing complexity and competition in healthcare require innovative managerial practices and authentic leadership for sustainable financial performance. A quantitative survey approach was utilized, involving 111 respondents from various PSA hospitals in Indonesia. The research instrument used a 1–5 Likert scale questionnaire distributed through a combination of Google Form and direct surveys to hospitals. Data were analysed using Structural Equation Modelling (SEM) PLS. The results showed that authentic leadership has a positive influence on financial performance, and organizational climate strengthens this effect. However, managerial innovative capabilities did not have a significant effect on financial performance, and the relationship was not moderated by organizational climate. The findings highlight the importance of developing authentic leadership in hospitals. In addition, creating a conducive organizational climate can be an important strategy to encourage collaboration, innovation, and sustainability, especially in the face of dynamic challenges and limited resources in the healthcare sector. This study makes a theoretical contribution in expanding the literature on leadership and health management innovation while providing practical and policy-relevant insights for healthcare organizations in developing countries.