Global Academy of Business Studies
Vol. 2 No. 2 (2025): October

The effect of organizational culture and service quality on patient loyalty mediated by patient satisfaction

Adhe William Fanggidae (Krida Wacana Christian University, Jakarta, Indonesia)
Soegeng Wahyoedi (Krida Wacana Christian University, Jakarta, Indonesia)



Article Info

Publish Date
28 Oct 2025

Abstract

Purpose: This study examines the effect of organizational culture and service quality on patient loyalty, with patient satisfaction as a mediating variable. The research focuses on Siloam Kupang General Hospital, where improving service quality and cultivating a strong culture are essential for sustaining patient loyalty in a competitive healthcare environment. Methodology: A quantitative approach using Partial Least Squares–Structural Equation Modeling (PLS-SEM) was applied to data collected from 200 outpatients through structured questionnaires. Four latent variables organizational culture, service quality, patient satisfaction, and patient loyalty were analyzed using SmartPLS 4. Results: The findings reveal that both organizational culture (? = 0.293; p < 0.001) and service quality (? = 0.306; p = 0.001) significantly influence patient loyalty. Patient satisfaction also has a significant effect on loyalty (? = 0.294; p = 0.001) and mediates the relationships between organizational culture and loyalty (? = 0.141; p = 0.006), as well as between service quality and loyalty (? = 0.097; p = 0.034). The model demonstrates substantial explanatory power (R² = 0.633) and high predictive relevance (Q² = 0.462). Conclusion: Strengthening organizational culture and improving service quality are key strategies to enhance patient satisfaction and loyalty. Hospitals should prioritize patient-centered values, effective communication, and responsive services to build lasting trust. Limitations: The study is limited to a single hospital and a specific patient group, restricting generalizability. Contribution: This research extends the understanding of mediating mechanisms between culture, service quality, and loyalty, offering managerial insight for hospital service excellence and patient retention strategies.

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Journal Info

Abbrev

gabs

Publisher

Subject

Economics, Econometrics & Finance

Description

Global Academy of Business Studies, published by Goodwood Publishing, is an online, peer-reviewed, open access scholarly journal that publishes high-quality, critical, and original research in the field of business and management. The journal serves as a platform for researchers, academics, and ...