The Effect of Service Delivery Performance and Corporate Social Responsibility on Institutional Image and Competitive Advantage and its Implication on Customer Trust (A Survey of Private Hospitals in Solo Raya)

Abstract

This paper investigates private hospitals performance measured by service delivery, corporate social responsibility, institutional image and competitive advantage with the effect towards customer trust. The data was collected from 420 patients from 21 private hospitals in Solo Raya including Solo city, and 6 regencies: Boyolali, Klaten, Sukoharjo, Wonogiri, Karanganyar, and Sragen. This study indicates that service delivery performance and corporate social responsibility is lesser and lower than patients hope for. Private hospitals in Solo Raya do not yet value image, competitive advantage, and customer trust. Service delivery performance and corporate social responsibility have positive effects towards institutional image and competitive advantage. Institutional image and competitive advantage have reciprocal effects. The effect of service delivery performance towards customer trust, but corporate social responsibility do not have direct effect towards customer trust. From suggested finding result that private hospital repairs service delivery performance, physical facilities, also personnel contact performance to increase corporate social responsibility, to increase institutional image and competitive advantage to increase customer trust.