Research Objectives This study aims to analyze the influence of strategic leadership, physician competence, and digital health services on the performance of the Indonesian National Army (TNI AD) Hospitals, with service innovation as the mediating variable. As a support for combat readiness and a provider of public health services, the Indonesian Army Hospital faces significant challenges in quality standardization, human resource effectiveness amidst the dynamics of military assignments, and the acceleration of digital technology. This study seeks to answer how the integration of leadership, professional capabilities, and technology can create a competitive advantage through service innovation. Research Methodology This study employs a quantitative approach using an explanatory survey method. Primary data were collected via a structured questionnaire distributed to top and middle management leaders at various RS TNI AD across Indonesia using purposive sampling. Data analysis was conducted using covariance-based Structural Equation Modeling (SEM) with AMOS software. This technique was used to test complex causal relationships, perform confirmatory factor analysis, and test mediation effects simultaneously and accurately. Research Findings The findings indicate that strategic leadership has a positive and significant impact on hospital performance; leaders’ long-term vision was found to enhance organizational effectiveness. Physician competence also exerts a significant positive influence on performance by improving service quality and operational efficiency. Additionally, digital health services were shown to boost performance by expanding accessibility and enhancing the accuracy of medical data. Mediation analysis results indicate that these three independent variables have a positive effect on service innovation. Crucially, service innovation was found to act as a mediating variable (partial mediation) that strengthens the influence of leadership, competence, and technology on hospital performance. This suggests that the impact of organizational resources will be far more optimal if they can be converted into concrete service innovations for patients. Implications and Originality Practically, these results recommend that the Army Health Center (Puskesad) focus on integrated digital transformation and the development of adaptive leadership. Enhancing physician competencies must include digital literacy and innovation capabilities. The study’s limitation lies in its broad geographical scope; therefore, future research is advised to include organizational culture as a moderating variable. The originality of this study lies in the integration of the three main variables into a single comprehensive empirical model within the context of military hospitals, a sector that has been under-researched compared to the private sector.
Publication Date: 2026-06-18