Navigating institutional pressure: Role of dynamic managerial capabilities and strategic agility in healthcare organizations’ renewal

This paper aimed to analyze healthcare organizations’ pressures regarding digitalization caused by uncertainties after the pandemic. The study investigates the relationship among healthcare organizations‘ institutional pressure, dynamic managerial capabilities (DMC), strategic agility, and strategic renewal, focusing on selected private hospitals in Indonesia. Top executives and managerial personnel responded to our survey within five months before the investigation. Data were analyzed using partial least squares structural equation modelling (PLS-SEM) with hierarchical component models (HCMs). The study found that institutional pressures positively impacted strategic agility, whereas DMC strengthened the connection between institutional pressure and strategic agility. This study also indicates that strategic agility influences strategic renewal positively.