Technology Innovation and Healthcare Performance among Healthcare Organizations in Saudi Arabia: A Structural Equation Model Analysis

The number of people in need of healthcare is increasing over time despite the limited resources available in each country; hence, access to healthcare, quality of healthcare, and cost of healthcare remain contemporary global issues. The limitations of travel and access to healthcare during the global pandemic (COVID-19) have triggered the further search for improved and sustainable healthcare services through technology innovation and digital transformation in the healthcare sector. This study examines the impact of technology innovation on healthcare performance among 241 healthcare organizations in Saudi Arabia. The study utilizes the structural equation model (SEM) method to unravel the nature of technology innovation and its influence on healthcare performance. The results of SEM reveal that innovation efforts, in terms of R&D, training, and the acquisition of new software and acquisition of new medical machinery/equipment, have a significant influence on technology innovation and healthcare performance. Furthermore, the results further indicate that technology innovations measured by mobile technology, digitalization of health records, telehealth/telemedicine and artificial intelligence have great likelihood and significant influence on healthcare performance among the healthcare organizations surveyed. This implies that continuous innovative efforts and spending on various technology innovations would further improve the efficiency and quality of healthcare service which give a competitive advantage to healthcare organizations in Saudi Arabia. Hence, innovation which encompasses all stakeholders should be continuously reinforced in Saudi Arabia’s health policy as this would further strengthen healthcare performance.