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 responsibil
ity 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 advan
tage. Institutional image and competitive advantage have reciprocal effects. The effect of ser
vice 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 advan
tage to increase customer trust.