The Effect of Service Delivery Performance and Corporate Social Responsibility on Institutional Image and Competitive Advantage and its Implication on Customer Trust

Abstract

This paper investigates private hospitals performance measured by service delivery, corporatesocial responsibility, institutional image and competitive advantage with the effect towardscustomer trust. The data was collected from 420 patients from 21 private hospitals in Solo Rayaincluding Solo city, and 6 regencies: Boyolali, Klaten, Sukoharjo, Wonogiri, Karanganyar, andSragen. This study indicates that service delivery performance and corporate social responsibilityis lesser and lower than patients hope for. Private hospitals in Solo Raya do not yet valueimage, competitive advantage, and customer trust. Service delivery performance and corporatesocial responsibility have positive effects towards institutional image and competitive advantage.Institutional image and competitive advantage have reciprocal effects. The effect of servicedelivery performance towards customer trust, but corporate social responsibility do nothave direct effect towards customer trust. From suggested finding result that private hospitalrepairs service delivery performance, physical facilities, also personnel contact performance toincrease corporate social responsibility, to increase institutional image and competitive advantageto increase customer trust. Copyright © www.iiste.org