Digital Innovation and Public Value Creation in Healthcare: Empirical Evidence from a Regional Public Hospital in Indonesia
DOI:
https://doi.org/10.59890/ijsas.v4i5.455Keywords:
Digital Innovation; Public Value; PLS-SEM; Healthcare Services; Patient Satisfaction; IndonesiaAbstract
Digital transformation has become a strategic priority in public healthcare, yet its contribution to public value creation remains underexplored, particularly in developing countries. This study examines how digital innovation shapes public value in healthcare, focusing on I Lagaligo Regional General Hospital, Indonesia. Drawing on the public value framework, digital innovation is conceptualized as a multidimensional construct encompassing efficiency, accessibility, transparency, and patient-centered care. A mixed-method approach was employed. Quantitative data were collected from 312 patients using purposive sampling, targeting individuals who had utilized digital health services. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that digital innovation significantly improves service quality (β = 0.61, p < 0.001) and patient satisfaction (β = 0.57, p < 0.001), both of which strongly contribute to public value creation (β = 0.64, p < 0.001), with satisfactory explanatory power (R² = 0.58).
Qualitative findings support these results, highlighting improved efficiency and reduced waiting times, while also identifying challenges related to digital literacy, infrastructure, and organizational readiness. This study provides empirical evidence linking digital innovation to public value outcomes and offers policy implications for strengthening inclusive and sustainable digital healthcare systems.
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