Abstract:

This study aims to analyze the effect of performance management practices and company size on innovation and its impact on organizational performance in 12 regional public hospitals in South Kalimantan, Indonesia. This research contemplates that performance management practices in innovation so that it has impacts on improving organizational performance.

The population of the study is the managers of 12 regional public hospitals in South Kalimantan. The research sampled 241 respondents. Data analysis techniques use path analysis to support direct and indirect for organizational management.

The results of this study indicate that the implementation of management is related to organizational performance through direct development of 0,778 and an indirect effect of 1,406 relating to the direct involvement of management to the organization of greater improvement, the hypothesis which states that financial management planning supports organizational performance through innovation is proven in this research. The direct effect of management size on organizational performance is 0,095 and the indirect effect is 0,128, which means that the direct effect on organizational performance is smaller than the indirect effect, so the hypothesis that increases company size on organizational support is proven to support this research. The novelty in this study reveals the research that needs to be done to support innovation at regional public hospitals in South Kalimantan in terms of administration, facilities, and infrastructure as well as human resources.