Advances in technology, regulations, and rapid rise in costs have generated a growing interest among researchers to explore the role of knowledge management in healthcare. While most studies have focused on information technology and medical informatics including electronic health records management, only a few have attempted to go beyond the clinical processes (patient diagnostics) aspects of healthcare. Core business processes in healthcare go beyond clinical and diagnostics care. Employee knowledge and organizational mechanisms of knowledge and process management are hypothesized to contribute to process performance. In this paper we present afield study of healthcare firms in the Midwestern region of United States. Applying existing theories on absorptive capacity, goal setting, and goal commitment we model the relationships among relevant constructs and using PLS methods show that knowledge management capabilities and organization's commitment and focus on knowledge contribute to supporting business process performance.
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