Organizational Support Boosts Hospital Performance Only Through Employees’ Intention to Stay
A 2026 study published in the International Journal of Asian Business and Management reveals that perceived organizational support does not directly improve employee performance in a private hospital in Gresik Regency, Indonesia. Instead, organizational support enhances performance only when it strengthens employees’ intention to stay. The research was conducted by Saniya Hamakillah and Muhammad Husain from Universitas Negeri Surabaya. The findings matter as Indonesia’s rapidly expanding private healthcare sector faces increasing pressure to maintain service quality alongside workforce growth.
Indonesia has seen significant growth in hospital numbers, particularly private institutions. Government data show that private hospitals account for more than half of all hospitals nationwide. In East Java Province, hospital numbers increased by around 10 percent between 2019 and 2023. However, rising quantity has not always translated into improved service quality. This gap highlights the importance of human resource management in healthcare organizations.
Employee performance remains central to hospital service standards. Performance reflects how well employees complete tasks, meet service targets, and maintain quality care. Organizational support—such as fair treatment, supervisor assistance, recognition, and safe working conditions—is widely believed to improve performance. Yet previous research has produced mixed results.
Research Design and Data
Saniya Hamakillah and Muhammad Husain used a quantitative approach involving employees at a private Class D hospital in Gresik Regency. The hospital employs 131 staff members. Using proportional stratified random sampling, the researchers selected 100 respondents.
Data were collected through a 21-item questionnaire using a five-point Likert scale. The study measured:
- Perceived Organizational Support (POS)
- Intention to Stay (ITS)
- Employee Performance (EP)
The researchers analyzed the data using Structural Equation Modeling with SmartPLS 4 software. Statistical significance was determined at a 5 percent level.
Most respondents were female (79 percent), held a bachelor’s degree (54 percent), were aged 30–39 years (45 percent), and had worked at the hospital for one to five years (49 percent).
Key Findings
The results reveal a clear pattern:
1. Organizational support does not directly affect performance.
The direct relationship between perceived organizational support and employee performance was not statistically significant (p = 0.766). This means higher levels of perceived support alone did not automatically increase performance.
2. Organizational support strongly increases intention to stay.
Perceived organizational support had a positive and significant effect on employees’ intention to remain with the hospital (coefficient = 0.578; p < 0.001). Employees who felt valued and supported were more likely to stay.
3. Intention to stay significantly improves performance.
Intention to stay positively influenced employee performance (coefficient = 0.419; p = 0.007). Employees who wanted to remain in the organization demonstrated higher work performance.
4. Intention to stay fully mediates the relationship.
Organizational support indirectly improved performance through intention to stay (coefficient = 0.242; p = 0.018). In practical terms, support enhances performance only by strengthening employee retention.
These results show that intention to stay acts as a full mediator between perceived organizational support and employee performance.
Why Retention Matters More Than Direct Support
Saniya Hamakillah from Universitas Negeri Surabaya explains that employees who feel appreciated and supported develop stronger loyalty toward the organization. That loyalty translates into greater commitment and improved performance.
Muhammad Husain adds that organizational support must be paired with strategies that reinforce retention. Recognition, fair rewards, career development, and positive work environments encourage employees to remain and contribute more effectively.
The study suggests that simply offering support mechanisms is insufficient. Hospitals must ensure that support policies genuinely increase employees’ desire to stay. Without retention, support initiatives may not deliver measurable performance gains.
Implications for Hospital Management
For private hospitals facing workforce competition and service quality challenges, the findings offer clear guidance:
- Strengthen reward and recognition systems.
- Provide transparent career development pathways.
- Maintain fair treatment and supportive supervision.
- Foster positive workplace relationships.
Improving these factors increases employees’ intention to stay, which in turn elevates performance.
For policymakers, the research underscores the importance of human resource strategies in healthcare reform. Expanding hospital infrastructure alone does not guarantee better service outcomes. Employee retention and engagement are critical.
Contribution to Organizational Behavior Research
The findings contribute to ongoing debates about the link between perceived organizational support and performance. While many studies report a direct positive effect, this research demonstrates a more nuanced relationship in the healthcare context.
In this private hospital in Gresik Regency, organizational support influenced performance only indirectly. This highlights the strategic role of intention to stay as a psychological mechanism connecting support and productivity.
The study also recommends that future research explore additional mediating variables such as job satisfaction or organizational commitment and expand the sample to other hospitals for broader generalization.
Author Profiles
Saniya Hamakillah, S.M. Universitas Negeri Surabaya
Muhammad Husain, S.E., M.M. Universitas Negeri Surabaya.
Source
“Examining the Effect of Perceived Organizational Support on Employee Performance: The Mediating Role of Intention to Stay.”
International Journal of Asian Business and Management (IJABM), Vol. 2, No. 1, pp. 67–78.
DOI: https://doi.org/10.55927/ijabm.v5i1.6
Official URL :https://journalijabm.my.id/index.php/ijabm/index
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