Investigation the Effects of Innovation on Organizational Performance with Structural Equation Modeling, an Empirical Study in Supply Chain Health Care Industry

Supply chain management is a complex system that interfaces with many different dimensions with a hospital and with suppliers, so organization need to first innovate their business process while alsoconsidering their suppliers' processes to accomplish effective supply chain management. This study examines the effects of innovationleadership, supply chain innovation, supply chain efficiency and quality practices on organizational performance in the health care organization.For this study, data is collected from 80 hospitals in Fars province. The structural equation modeling technique with LISREL was used to testhypotheses in the research model. The results confirmed the effect of innovation leadership on process improvement and IT application forSC innovation. In addition, the results showed the effect of operational improvement as a result of supply chain efficiency and quality management practices on organizational performance.

Keywords:

supply chain management , innovation leadership , organizational performance , health care industry , structural equation modeling