The Relationships of Strategic Leadership, Resource Orchestration, and Strategy Execution toward Organizational Effectiveness and Competitive Advantage

The COVID-19 pandemic offered the healthcare services industry two distinct strands of the story. On the one hand, it has imposed unprecedented strain on the healthcare system’s capacity to cope with the increasing needs and urgency of surviving through the pandemic. On the other hand, it has necessitated favourable behavioural changes among healthcare stakeholders. Eventually, the pandemic has raised consumerism in healthcare, thus providing bigger opportunities for the healthcare services industry to expedite its growth. This study aimed to address how the healthcare services industry players could take advantage of this window opportunity by explaining the factors shaping competitive advantage from the internal perspective of strategic leadership, resource orchestration, strategy execution, and organizational effectiveness. A validated questionnaire was used to collect the empirical data of 294 healthcare industry employees across 83 hospitals in Indonesia. This study suggested that, in a disruptive environment, strategic leadership promotes organizational effectiveness and competitive advantage only if it goes through strategy execution. Strategic leadership and resource orchestration as individual factors were found to be insufficient to promote organizational effectiveness. Furthermore, this study confirmed that for an organization to achieve its competitive advantage, the role of strategy execution and organizational effectiveness is significantly increasing.