Volume 22, Issue S1 e2808
RESEARCH ARTICLE
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Diversity, entrepreneurial innovation, and performance of healthcare sector in the COVID-19 pandemic period

Hani El Chaarani

Hani El Chaarani

Beirut Arab University, Beirut, Lebanon

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Lukman Raimi

Corresponding Author

Lukman Raimi

Department of Business (Entrepreneurship), Universiti Brunei Darussalam, Bandar Seri Begawan, Brunei

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Lukman Raimi, Department of Business (Entrepreneurship), Universiti Brunei Darussalam, Bandar Seri Begawan, Brunei.

Email: [email protected]

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First published: 04 January 2022
Citations: 5

Abstract

This research explores the correlation between diversity, entrepreneurial innovation, and performance of the Lebanese healthcare sector during the COVID-19 pandemic period. It aims to analyze the nature of the following correlations (a) the impact of workforce diversity on entrepreneurial innovation, (b) the impact of workforce diversity on performance, and (c) the impact of entrepreneurial innovation on performance. Using a cross-sectional survey design, we collected the primary data from heterogeneous respondents including 870 patients and 261 executives leading 87 major private hospitals and other medical centers in Lebanon. Structural Equation Modeling (SEM) is employed to predict multivariate causal relationships between latent constructs and measured variables. The results of the SEM model reveal that gender diversity (GD) is a key success factor of workforce performance in the Lebanese healthcare sector since it can increase both process innovation (PI) and organizational innovation (OI) and also enhance organizational performance (OP) and patient satisfaction (PS). The results indicate that age diversity (AD) especially the presence of youth in medical centers has a positive and significant impact on organizational performance and patient satisfaction. Finally, the results of this study show that the presence of women and youth in the Lebanese healthcare sector improves entrepreneurial innovation and thus, leads to enhance the performance level and the quality of healthcare outcomes. This research provides original information that supports executive managers in the healthcare sector during crisis periods. Managerial practices and policies designed to foster diversity can improve workforce performance and the quality of medical outcomes.

1 INTRODUCTION

Since the emergence of the COVID-19 pandemic in the last quarter of 2019, the global healthcare industry has continued to face adverse operational, financial, and medical challenges. The World Health Organization (2020) reports that the ravaging pandemic has lowered the occupancy rate in the healthcare sector across countries, which have negatively affected the profitability and sustainability of most hospitals and clinics. Additionally, the pandemic has destroyed jobs across sectors and rendered several occupations obsolete and redundant‑a situation that calls for upgrading and upscaling of existing skills to help employees and employers cope adequately with the pandemic (Osland et al., 2020). It is reassuring to report that several organizations in emerging economies are already adopting diversity practices and entrepreneurial innovation to gain a competitive advantage in the changing business environment (El-Chaarani & El-Abiad, 2018; Grubbs, 2020; Raimi & Yusuf, 2020). The service providers across different sectors are already rethinking and reinventing their operations and business models because of the threat of uncertainty imposed by the pandemic (Kilic, & Marin, 2020). Thus, this new article attempts to help this new call of managerial updating to help medical organizations in resolving their new challenges during the COVID-19 pandemic period through a new organizational design adopting both diversity practices and entrepreneurial innovation.

In Lebanon, which is the research context, the threat caused by the pandemic to the healthcare sector is severe and devastating in terms of the number of infections, and death, and patients waiting to be tested. The devastation has been described as ‘an insult over injury for Lebanon’ (Bizri et al., 2021) and a crisis in a crisis (Chehayeb, 2020) because the country is slowly recovering from the harsh political and economic crises of the past decades (Bizri et al., 2021) including the ongoing uprising against institutional corruption and political mismanagement in the country (Neal & Tansey, 2010). At present, there are 615,532 confirmed cases, 8218 deaths, and a total of 2,814,277 vaccine doses have been administered (World Health Organization, 2021). For the health sector in Lebanon to keep hospitals open, attend to patients with coronavirus and those with other ailments, save jobs in the sector, pay salaries, and cope with the effect of the pandemic, the managers need financial interventions from the government and external donors. This has not been forthcoming, hence the healthcare sector is responding proactively and innovatively to the changing times by using different types of innovative practices. What types of innovative practices are being adopted in coping with the ravaging pandemic in the health sector in spite of lean resources calls for investigation?

The adoption of novel practices such as proactiveness, strategic planning, and process innovation by managers in the period of economic recessionary and political crisis is well reported in the literature (Archibugi et al., 2013a; Archibugi et al., 2013b; Brzozowski et al., 2019). However, the adoption of entrepreneurial innovation to drive organizational performance does not happen in a vacuum, it is a phenomenon that relies on a context or situation. Previous researchers that studied the impact of entrepreneurial innovation on performance have therefore suggested the introduction of an auxiliary factor or a moderating variable for investigating the causality of the two variables (Bizri et al., 2021; Covin & Slevin, 1989; Jones & de Zubielqui, 2017; Li & Atuahene-Gima, 2001). And Rosenbusch et al. (2011) particularly recommended that such auxiliary factors should come from the business external environment.

Therefore, the current study considered diversity as a relevant factor in investigating the impact of entrepreneurial innovation on performance. Diversity in the context of this study covers diversity refers to workplace policy that recognizes, understands, and accepts personality differences of employees based on their race, gender, age, class, ethnicity, physical ability, race, sexual orientation, spiritual practice, and other social and psychological orientations (Dike, 2013). Diversity dimension such as gender diversity, age diversity and value diversity should be of utmost concern to managers of the healthcare sector in the pandemic period and beyond because empirical studies confirmed that diversity impact on the performance of business activities and outcomes (Grubbs, 2020).

Apart from diversity, the top- and middle-line managers in the health sector during the pandemic have also embraced entrepreneurial innovation in their medical and managerial activities. Entrepreneurial innovation finds relevance in the present setting because it allows organizations to create a competitive advantage in the market domain, by substituting, improving, renewing, and reinventing new products, services, and processes while responding to entrepreneurial opportunities (Nițu-Antonie et al., 2017). The application of entrepreneurial innovation extends is finding novel ways and means of delivering new, improved, better goods or services to the people and the society by using new technologies and processes that fit local conditions (Brzozowski et al., 2019; Kinicki & Williams, 2010; Wolf, 2006). Some of the innovative strategies include flexible managerial methods and new service plans that fit the turbulent environment (Ratten, 2020). From an empirical standpoint, the adopted innovative practices during the crisis are anticipated to improve financial performance and enhance customer satisfaction in the medical and non-medical sectors (Mejri et al., 2018; Chierici et al., 2019; El-Chaarani et al., 2021; Vrontis et al., 2021).

The diversity dimensions that could complement entrepreneurial innovation are age, race, background, education, and ethnicity. Studies have shown that these diversity dimensions have been given serious attention by managers during crises because of the plausibility of enhancing productivity, customer satisfaction, and financial performance (Gomez & Bernet, 2019; Jones et al., 2020; Lee & Kim, 2019). A growing body of empirical studies and theories have investigated the impact of diversity on the performance of business activities and outcomes (Grubbs, 2020). Many studies highlighted that diversity leads to improve financial performance and productivity of teamwork. However, there is no study showing the relationship between diversity, innovation, and performance in the health sector during the pandemic crisis leaving decision-makers and executives without clear guidelines. This research fills some gaps by addressing and answering the following question: what are the impacts of diversity and entrepreneurial innovation on the performance of the Lebanese healthcare sector during the COVID-19 pandemic period? What is the impact of entrepreneurial innovation on the performance of the Lebanese healthcare sector? Is there any indirect impact of diversity on the performance of Lebanese healthcare?

Since 2019, the Lebanese healthcare sector is suffering from economic instability, collapse of banking sector, shortage of medical materials and human resources. Thus, the Covid-19 virus came at a worst time in Lebanon. The first objective of this study is to provide new insights related to workforce diversity for managers and executives in Lebanese healthcare sector to improve the performance of their medical organization during the pandemic period. The second objective of this research is to explore the relationship among workforce diversity, entrepreneurial innovation, and performance of healthcare sector during crisis periods, where the finding would help in exploring the specific impact of age and gender diversity on innovation and performance of medical centers.

This research is different from previous studies since it examines a new subject based on a new sample of medical centers and hospitals during 2021. In addition, this article provides a development to the literature by exploring the role of workforce diversity and innovation in healthcare sector, where no prior research has explored the multiple links in healthcare sector during high level of instability.

Apart from the introduction, there are four other sections. The first section of the study presents the literature review of the impacts of diversity and entrepreneurial innovation on performance. The second section explicates the methodology, sample, and variables of this research. The third section presents the empirical findings that emerged from the study. The fourth section concludes with implications, limitations, and new research directions.

2 LITERATURE REVIEW

Since the appearance of Covid-19 virus, the healthcare industry across the globe is facing several managerial, financial and medical challenges. First, the new virus has affected the safety conditions of employees in medical centers who are living in horrific and very dangerous situation due to their direct and indirect contacts with patients (Dimian et al., 2021). The number of Covid-19 infections and deaths among healthcare workers have developed worldwide (World Health Organization, 2020).

Second, many medical centers and hospitals are suffering from a sharp drop of their financial performance, liquidity, and revenue because the majority of healthcare services and outpatients' departments were closed during the long lockdown period (Dimian et al., 2021). The difficulty of transportation and governments restrictions have guided all medical centers to focus on Covid-19 patients and discard other profitable activities like diabetes care and cardio treatment (World Health Organization, 2020).

Third, the severity impact of Covid-19 rises the pressure on governance bodies and top executives' managers in medical sector to resolve healthcare crisis and its social and economic impacts on healthcare centers in rapidly changing environment (Grubbs, 2020). Middle-line managers are also facing managerial ineffectiveness and shortage of resources (Raimi & Yusuf, 2020).

As a result, governance bodies, top and middle line managers in healthcare sector admitted that it is not possible to lead and manage their medical and managerial activities by using the same strategy (El-Chaarani et al., 2021).

The analysis of literature review treating the managerial solutions that could be employed by executives in business and medical activities shows that innovation and development of workforce diversity are between the most important practices mainly during the COVID-19 pandemic period (Figure 1).

Details are in the caption following the image
Literature review of managerial practices before and during the pandemic period

For example, Vrontis et al. (2021) recommended the implementation innovative strategies, flexible managerial methods and new service plans adapted with the turbulent environment during the COVID-19 pandemic period to improve both customer satisfaction and financial performance in medical centers. Mejri et al. (2018) and Chierici et al. (2019) argued that the implementation of innovation in healthcare sector could lead to improve the quality of medical outcomes during crisis and thus, managers in healthcare sector must face the new challenges by employing innovative strategies.

On the other hand, many scholars like Jones et al. (2020) and Grubbs (2020) stated that workforce diversity practices must be employed by managers and executives in healthcare sector since they could lead to improve the capacity of medical centers to innovate and deal with new challenges during and after the COVID-19 pandemic period. Raimi and Yusuf (2020) recommended the development of workforce diversity since it can improve the innovation activities and therefore, leads to face the new challenges and mitigate the different types of risk during crisis period.

Many other theories and empirical studies have investigated the impact of diversity or innovation on the performance but there no study showing the relationship between diversity, entrepreneurial innovation and performance in healthcare sector during the pandemic crisis leaving decision makers and executives without clear guidelines.

The next three sections will highlight this gap issue and discuss in detail the relationship between diversity and performance, entrepreneurial innovation and performance, and finally diversity and entrepreneurial innovation.

2.1 Diversity and performance

Diversity is clearly a very hot topic in the social and business fields. Wherever diversity is embraced, it becomes a key success factor for business performance and social development because diverse groups of workers, managers, and stakeholders bring rich ideas, sift skills, and managerial practices into organizations (Joniaková et al., 2021). Diversity when adopted could also boost creativity and therefore leads to improve economic growth and cultural interaction among groups. A number of theories have attempted to explain the pros and cons of diversity. According to social identity theory (Turner et al., 1979), employees are attracted to colleagues and groups sharing the same gender, education, age, or ethnicity with them. This type of scenario does not help organizational growth and development. In the opinion of Turner et al.  (1979), that social identity perspective makes employees classify themselves in a particular group in which they feel comfortable and fit in. Consequently, the perspective creates an atmosphere of discrimination, bias, and conflicts, leading to decrease performance.

However, the social dominance theory (Sidanius et al., 2004) explains how some groups can exert influence and discrimination on other groups by not embracing diversity. For this theory, the existence of a dominant group can lead to inefficiency and most often threaten the efficient allocation of resources. Thus, leaders must better understand the concept of diversity and its consequences within the organizations (Homan et al., 2020). Harrison and Klein (2007) therefore described diversity as the collective differences among people within a society. This definition includes all types of differences between employees. Hayes-Thomas (2004) defined diversity as differences between humans that could affect their opinions, behaviors, performance, and work achievement. For Henry and Evans (2007), diversity is the combination of workforce groups based on different socio-cultural categories. In the literature, diversity has two dimensions, namely: visible and non-visible (Ashton, 2010; Harrison et al., 2002). The visible or surface diversity encompasses demographic characteristics such as age, gender, race, disability, and ethnicity. The non-visible or deep diversity level includes values, knowledge, experience, education, religion, income, marital status, social class, and other not immediately visible common characteristics.

Several studies have revealed that diversity like age, gender, and ethnicity can improve organizational performance. Gender diversity can stimulate innovative alternatives helping decision-making and problem-solving in complex contexts (Westphal & Milton, 2000). The presence of women in strategic positions such as membership of the board of directors can improve the decision-making, compensation policy, and financial performance (Ntim et al., 2017). Furthermore, it has been empirically proved that the existence of employees of different ethnic origins within the same organization enhanced the team performance and therefore, leads to improve financial performance (Opstrup & Villadsen, 2014). Different members from different cultures and countries could raise the knowledge exchange and enhance the organizational performance (Simbarashe et al., 2019). However, some companies can experience negative effects from the existence of different nationalities and races when the minority groups are treated with discrimination mainly during the crisis (Foma, 2014).

Moreover, the existence of different generations of employees inside the organization can provide a pool of mutual learning and enhance the transfer of experience from old professionals to young generations (Page, 2007). The presence of heterogeneous age groups of workers helps to enhance the satisfaction of customers (Canella et al., 2008). Richard and Shelor, (2002) found that age heterogeneity is associated with better organizational productivity and increase performance of the decision-making process. Diversity theorists explained that value diversity (a non-visible dimension) should be given serious consideration in the organizations (Jehn, 1994) because this diversity type shapes the behavior of the workforce and helps predict the output of employees (Hackman, 1990). Some studies also affirmed that value diversity has a significant impact on team success and performance. Another study reveals the positive impact of value diversity on the performance of organizations (Liang et al., 2012; Wang et al., 2020).

With specific reference to the healthcare industry, several scholars (Bradley, 2020; Brimhall, 2019; Gomez & Bernet, 2019; Koopmans et al., 2018; Rosen et al., 2018; Sfantou et al., 2017; Smith et al., 2018; Yousaf et al., 2021) explained that diversity can functionally improve both financial performance and patient care satisfaction. Their various studies revealed that healthcare professionals from different disciplines and levels can enhance the quality of care, improve performance and reduce the mortality rates in the hospitals. During the Covid-19 pandemic period, Joniaková et al. (2021) stated that both diversity management and diverse workforce have helped to develop creativity, improve team productivity and increase patient satisfaction in the hospitals, clinics, and care centers.

Similarly, Kringos et al., (Kringos et al., 2020) explained that in responding to the challenges posed by the ongoing pandemic, the managers in the health sector have resorted to mobilizing an interdisciplinary workforce from diverse backgrounds of health research, health information, medicine, health economics, medical statistics, health management, and public administration. The interdisciplinary diversity and collaboration became expedient and inevitable for a high level of communication, knowledge-sharing, and effective departmental coordination during the pandemic period for the purpose of improving the efficiency and outcome of teamwork. Based on the reviewed literature, the strategic practice of diversity has the plausibility of improving the performance of organizations. Thus, the first hypothesis is stated as follow:

H11- Diversity has a positive impact on the performance of healthcare sector during the Covid-19 pandemic period.

2.2 Entrepreneurial innovation and performance

Several studies discussed the effects of entrepreneurial innovation in the period of the COVID-19 pandemic on the performance of the small and medium enterprises/SMEs (Adam & Alarifi, 2021; Gerald et al., 2020; Guo et al., 2020). Particularly, Adam and Alarifi (2021) found that innovative practices adopted by SMEs during the pandemic had a positive effect on the performance and likelihood of business survival. Moreover, Guo et al. (2020) found that the deployment of digital technology has been helpful to SMEs for operational survival and the ability to cope with the adverse effects of the pandemic. Similarly, Gerald et al. (2020) revealed that strategic agility (an innovative practice) could help mitigate the negative effects of the pandemic on the performance of SMEs. The insights from all the foregoing findings validate the importance of entrepreneurial innovation in the recessionary period. Entrepreneurship as innovation is described as the best-known concept of entrepreneurship in economics credited to Joseph Schumpeter, who described an entrepreneur as an innovator (Foss & Klein, 2005). In the recessionary period, the Schumpeter's entrepreneur adjusts, adapts, and develops coping strategy that allows for the introduction of “new combinations”—new products, production methods, markets, sources of supply, or industrial combinations—thereby shaking the economy out of its previous equilibrium through a process of creative destruction (Foss & Klein, 2005; Schumpeter, 1911, 1939, 1949).

Besides, the behavioral theory (Cyert & March, 1963) explicates that organizations must adapt and embrace new strategies and activities in the period of uncertainties to enhance their performance and increase their competitive advantage. The initiation and implementation of research and development activities could help any organization sustain and develop its capabilities in an unstable environment. Similarly, the knowledge and resource-based theories are premised on the explanation that innovation inside the organization is important because it leads to enhance the competitive advantage and improve the overall performance (Mejri et al., 2018). Sharing and employing relevant and innovative knowledge could help any organization to improve its capacity to face crises and turbulent periods (El-Chaarani et al., 2021). From the foregoing, theories, the term entrepreneurial innovation can be viewed simply as creating competitive advantage in the market domain, by substituting, improving, renewing, and reinventing new products, services, and processes while responding to entrepreneurial opportunities (Nițu-Antonie, Feder and Munteanu, 2017). It extends is finding novel ways and means of delivering new, improved, better goods or services to the people and the society (Kinicki & Williams, 2010). El-Chaarani et al. (2021), Hu et al. (2020), and Montreuil et al. (2020) identify four important categories of innovation that can be implemented by medical and non-medical organizations. The first type of innovation is marketing innovation defined as the employment of new marketing methods and techniques related to place, promotion, price, and product to develop sales and improve competitive advantage (Hunt & Morgan, 1995). The second category of innovation is the product innovation identified as the implementation of a new product or the improvement of product features, characteristics, and functions to improve customers' perceptions and loyalty (Martínez-Román & Romero, 2017). The third type is process innovation defined as the improvement of procedures, processes, logistics, assembly line, and software to meet consumers' needs, reduce costs and improve financial performance (Ganzer et al., 2017; Karlsson & Tavassoli, 2016). The final type is organizational innovation defined as the implementation of new human resource management techniques and administrative procedures to improve organizational performance and decision-making methods (Armbruster et al., 2008; Damanpour et al., 2009).

Several scholars have revealed the impact of innovation on the performance of organizations during the Covid-19 pandemic period (Akinwale, 2020; El-Chaarani, 2021; El-Chaarani et al., 2021; Wang et al., 2020). They showed that innovation is very important during the crisis because it leads to provide efficient responses to customers' needs, and thus, could improve the competitive advantage. They argued that innovation has a direct and positive impact on the financial and non-financial performance of organization and leads to mitigate the liquidity risk and market volatility.

Lindgren et al., (2012) revealed that the rising cost and competition in the European healthcare sector cannot be met without the implementation of innovation. They recommended managers in European medical centers to implement the Open Business Model Innovation (O.B.M.I.) to enhance the overall performance. Yaqoob et al., (2021) stated that the implementation of innovation like blockchain technology in the healthcare sector can lead to improve data management and produce major enhancements mainly during a natural disaster. But, Vrontis et al. (2021) showed that the medical sector must implement a high level of managerial innovation and dynamism to sustain during the Covid-19 pandemic period. They showed that practicing dynamic and innovative managerial skills leads to improve the competitive advantage and enhance the financial and non-financial performance of the Lebanese health sector during the pandemic period. Darwish et al. (2020), confirmed the positive impact of innovative work behavior during the pandemic period for medical representatives in Bahrain. For Da Silva et al., (2021), the Covid-19 pandemic has promoted the dialog between governments, industries, and experts in the healthcare sector. They stated that innovation in science and technology needs to be improved during the post-pandemic period to make societies and governments well-prepared for future pandemics and emergencies.

The positive effect of innovation and new technology was also revealed by Alhasan et al. (2020). They stated that the use of Internet of Things (IoT) technology facilitated the mission of doctors during the pandemic period. The implementation of IoT technology in the healthcare sector led to sustain and meet patients' needs during the isolation period. Based on the reviewed literature and insights from the various theories of innovation, it is obvious that entrepreneurial innovation has the plausibility of enhancing the performance of the healthcare centers in the period of public health crisis. Thus, the second hypothesis that underpins this study is defined as follow:

H12- Innovation has a positive impact on the performance of healthcare sector during the Covid-19 pandemic period.

2.3 Diversity and entrepreneurial innovation

In the emerging knowledge-based economy, commercial and social organizations rely more on their intangible assets such as knowledge, skills, and abilities to gain competitiveness (Teece et al., 1997). Organizations with a variety of experiences and backgrounds among their workforce may have more capacity to be efficient (Quintana-Garca & Benavides-Velasco, 2008) and innovative (Bolli et al., 2018; Gallego & Gutiérrez, 2018; Gharama et al., 2020; Mir-Babayev et al., 2017) in different business fields. As a result, employee diversity is an important factor that could boost organization's development and innovation because both concepts improve the level of knowledge, ideas generation, and creativity (Woodman et al., 1993). Also, the adoption of diversity in terms of skills, genders, cultures, age categories, and educational backgrounds by an organization could help implement innovative strategies and consequently leads to mitigation of the risk of the Covid-19 pandemic (Vrontis et al., 2021).

A number of studies explored the nexus between innovation capabilities and workforce diversity. For instance, Özgen et al., (2013) found that a diverse foreign workforce within the same organization enhances innovation capabilities, and therefore, leads to improved outcomes. Similarly, the study of Gharama et al., (2020) revealed that cultural diversity improves the level of innovation, and diversity also plays the role of mediating variables in the relationship between innovation and strategic leadership. Furthermore, Ramasamy and Yeung (2016) found that value diversity (a non-visible asset that diverse people bring to an organization) has a positive impact on innovation while ethnic diversity has a negative influence on innovation. This study places emphasis on value diversity and downplays ethnic diversity. Moreover, a number of studies affirmed that that gender diversity has a positive impact on innovation. For instance, Gallego and Gutiérrez (2018) indicated that women's participation in manufacturing firms increases both technological creativity and organizational innovation. Pfeifer and Wagner (2014) also showed a positive impact of gender diversity on the innovation level of German manufacturing firms. They argued that women's participation increases the research and development investment, and therefore improves the financial performance. Similarly, Mir-Babayev et al., (2017) confirmed that both gender diversity and foreign diversity have a positive impact on innovation performance mainly when there is a moderate diversity level.

Besides, the nexus between age diversity and innovation has been reported in the literature. Different age categories with diversified knowledge and skills could facilitate the generation of new ideas and that are required to improve the relationship with customers from different age demographics (Galia & Zenou, 2012; Kang et al., 2007). In other words, they explicated the need for mixing employees with different age categories in order to stimulate innovation and improve organizational performance in the short and run. Backes-Gellner and Veen (2013) confirmed that age diversity could have a positive impact on innovation, and the impact extends to performance if employees are engaged in creative missions rather than routine activities Additionally, De Meulenaere et al., (2016) showed that the impact of age diversity on innovation depends on age distribution inside the organization. They found age diversity has a negative influence on innovation when it is polarized, but age diversity has a positive influence on innovation and performance when it is varied. Whereas, Mothe and Nguyen-Thi (2017; 2021) found a positive association between technological innovation and age variety, but age diversity has a negative impact on innovation and performance when tasks are classified based on sub-groups of homogeneous age categories.

But, Østergaard et al. (2011) argued that age heterogeneity could negatively affect innovation and creativity due to the potential conflicts between distinct age groups. Scholars argued that managers can control and manage potential conflicts that may arise from age diversity in organizations by improving the governance system, organizational efficiency, and internal communication between different business units (García-Martínez et al., 2017; Li, 2014). Gomez and Bernet (2019) studied the interaction between workforce diversity, financial performance, outcome, and innovation in the health sector, and consequently found that diversity can enhance innovation and thus subsequently leads to improved patient health outcomes and financial performance. All the insightful findings explicated above are supported by the information processing theory, which asserts that diversity could enhance organizational performance through an increase in shared knowledge (knowledge donation and knowledge collection) and innovation (Chung & Hossain, 2009). Based on the reviewed literature, diversity could enhance the innovation level and thus, may lead to improve the performance of the Lebanese healthcare sector. In addition, the impact of innovation on performance is conditioned by nature and the level of diversity. Thus, the last hypothesis is defined as follow:

H13- Diversity has a positive impact on the innovation in healthcare sector during the Covid-19 pandemic period.

3 METHODOLOGY

3.1 Method and model definition

This study aims to explore the relationship between diversity, innovation and performance in the Lebanese healthcare sector during the Covid-19 pandemic period. The different sub-objectives of this research are: (a) reveal the impact of workforce diversity on entrepreneurial innovation, and (b) reveal the impact of workforce diversity on performance, (c) reveal the impact of entrepreneurial innovation on performance (Figure 2).

Details are in the caption following the image
Research objectives

In this article, Structural Equation Modeling (SEM) approach is employed to reveal the interaction between innovation, diversity, and performance of the Lebanese health sector during the pandemic period. The first phase of the empirical research includes the evaluation of the reliability and consistency level of all items in each of the following constructs: entrepreneurial innovation, diversity, and performance. The second phase provides the analysis of the causal relationship between entrepreneurial innovation, diversity, and performance through SEM (Figure 3).

Details are in the caption following the image
Research methodology

The analysis of the causal relationship between entrepreneurial innovation, diversity, and performance has two major socio-economic contributions. On the economic level, the exploration of causal pathways could help executives in healthcare sector to enhance their managerial practices by optimizing their workforce diversity practices and thus, leads to improve the innovation and performance of their medical organizations. On the social level, revealing the importance of workforce diversity in healthcare sector leads executives to review their workforce diversity practices, improve their communication strategies and eliminate any type of discrimination between different genders or different ages. In addition, the improvement of diversity practices could help executives to overcome the managerial instabilities by lowering the level of pressure on women (Boniol et al., 2019) that are suffering from high social stresses due to the unbalance between their work and their family duties during the extended lockdowns.

3.2 Sample definition

Data for this study were gathered directly from the Lebanese private healthcare centers. The 14 public hospitals in Lebanon were not considered in this study because they lack the required flexibility and capacity to innovate in the time of crisis. The financial system and human resource management operations of public hospitals are directly controlled by the ministry of public health in Lebanon. Unlike private hospitals, public hospitals have a high level of bureaucracy and rigid routine, which would not allow their managers and top executives to embrace diversity. The contacts (email, address, telephone number) of the selected private healthcare centers were directly extracted from the database of the ministry of health. From the 111 private hospitals in Lebanon, only 87 accepted to participate in this study and complete the survey (Figure 4).

Details are in the caption following the image
Research sample

The survey was distributed through emails after the questionnaire instrument had been pre-tested through a sample of 10 patients and 7 executives in the Lebanese private hospitals. The tasks of negotiating access, sample selection, questionnaire administration, and data collection were carried out in the first quarter of 2021.The sample of this research consists of two types of respondents. The first category of respondents is composed of 10 patients from each hospital. The second category of respondents is composed of three top executives from each of the selected hospitals comprising the head of the medical department, the head of the nurse department, and the head of administrative and logistic department. Overall, a total of 870 patients and 261 executives participated in this research (Figure 5).

Details are in the caption following the image
Sample distribution per category

Table 1 presents the demographics of the 261 executives (87 nurses, 87 physicians, and 87 administrative directors). All the executives were Lebanese citizens, there were no foreigners. With regards to age, the majority were in the age category of 30–40 years old (25.7%) and 40–50 years old (28.4%). The majority of the executives were women (70.1%). Out of the 261 executives, 42.5% had between 10 and 20 years of experience. Finally, the majority of the employees (86.3%) and nurses (79.4%) held bachelor's degree.

TABLE 1. Executives' characteristics
Item of respondents Details of respondents Frequency Percentage
Position of executives Nurses 87 33.3
Physicians 87 33.3
Other employees 87 33.3
Experience (years) Less than 5 years 45 17.2
5‑10 years 71 27.2
10‑20 years 111 42.5
Above 20 years 34 13.0
Gender category Female 183 29.9
Male 78 70.1
Origin of executives Local 261 100.0
Foreigners 0 0.0
Age category 20–30 years old 34 13.0
30–40 years old 67 25.7
40–50 years old 74 28.4
50–60 years old 55 21.1
Above 60 years old 87 33.3
Education Level Employee Bachelor 75 86.3
Graduate 12 13.7
Nurses Bachelor 69 79.4
Graduate 18 20.6
Physicians Doctor of medicine 87 100.0

Table 2 presents the demographics of the 870 patients from 87 healthcare centers. All the executives are Lebanese citizens, there were no foreigners. The majority of the patients were in the age category of 50–60 and above 60 years old. Only 17.59% of the respondents were infected by Covid-19. Out of the 870 respondents, 44.02% were female. Finally, the majority of patients (62.3%) passed less than 5 days at the hospital.

TABLE 2. Patients' characteristics
Item of respondents Details of respondents Frequency Percentage
Type of infection Covid-19 153 17.59
Other 717 82.41
Number of days at hospital Less than 5 days 542 62.30
5‑10 days 256 29.43
10‑20 days 57 6.55
Above 20 days 15 1.72
Gender category Female 383 44.02
Male 487 55.98
Age category 20–30 years old 49 5.63
30–40 years old 182 20.92
40–50 years old 174 20.00
50–60 years old 202 23.22
Above 60 years old 263 30.23

3.3 Constructs definition

The variables that underpin this study were measured through multi-item construct based on previous research and after several modifications to make them fit with the Lebanese healthcare context. All variables and their constructs are presented in Table 3. All items were evaluated based on a 5-point Likert scale ranging from strongly agree (5) to strongly disagree (1).

TABLE 3. Variables constructs
Variables Constructs Item number Item details

Diversity

AGV

Age (It helps to evaluate the age diversity in the healthcare sector. An employee is considered relatively young if his/her age is less than 40 years. This subjective method is used to avoid low response rate) A1 Young employees were proportionally presented in senior positions
A2 Young employees were proportionally presented in managerial positions
A3 Young employees were proportionally presented in non-managerial positions
A4 Fair treatment with young
A5 Career development and opportunities were provided for young
Gender (It helps to evaluate the gender diversity in the healthcare sector during the pandemic) G1 Women were proportionally presented in senior positions
G2 Women were proportionally presented in managerial positions
G3 Women were proportionally presented in non-managerial positions
G4 Fair treatment with women
G5 Career development and opportunities were provided for women
Value (It helps to evaluate the common values of employees like being accountable, honest, reliable, positive and tolerance, helping others, making difference, respecting rules, and delivering quality) V1 Value of employees were similar
V2 Employees had similar goals
V3 Employees had the same work values
V4 Within teamwork, employees had similar goals
V5 Within teamwork, employees had similar values

Innovation

PO

Process (It is related to the operational system. It helps the healthcare sector to align the medical services with patients needs during the pandemic) P1 Speed of services were modified and upgraded
P2 Logistics were modified and upgraded
P3 Procedures were modified and upgraded
P4 Technologies and software were modified and upgraded
P5 Cost allocations were modified
Organizational (It is related to tasks, behavior, people, managerial cycle, and decision procedures. It helps the healthcare sector to improve the decision-making and upgrade the organization structure to be adapted with the pandemic period) O1 Cycle management were modified
O2 Human resource management were modified
O3 Management information system were modified
O4 Actions were implemented based on customers feed back
O5 New strategic decisions were implemented
Q6 New managerial procedures (decentralization, flexibility, coordination, motivation and development) were implemented

Performance

Pe

Financial performance (It helps to evaluate the financial situation of the healthcare sector through subjective method to avoid low response rate) FP1 Growth in revenue
FP2 Growth in assets
FP3 Growth in return on investment
FP4 Growth in return of profit margin
Organizational performance (It helps to measure the employees performance during the pandemic period based on their supervisors) OP1 Satisfaction level of employees
OP2 Engagement level of employees
OP3 Productivity level of employees
OP4 Commitment level of employees
Patients performance (It helps to evaluate the overall satisfaction and retention level of patients during the pandemic period based on a survey distributed to patients through all surveyed hospitals) PP1 Satisfaction level after receiving the medical service
PP2 Recommendation of the healthcare center to others after receiving the medical service
PP3 Quality level of medical service
PP4 Quality level of staff member (care and attentiveness)
PP5 Facilities, hygiene, and communication level

Three different diversity constructs were considered namely: age, gender, and value. The other diversity constructs like ethnic origin, race, and education were not considered because of high level of homogeneity in the Lebanese health sector.

Two different dimensions of entrepreneurial innovation were considered in the Lebanese health sector, namely: process innovation and organizational innovation. The other innovation constructs like marketing innovation and product innovation were not considered because the Lebanese medical centers at the period of pandemic focused saving lives through treatments sick people and providing essential medical services at a minimum cost to the citizens. Finally, the performance of the health sector was evaluated based on three basic constructs: organizational performance, financial performance, and patients' performance (satisfaction).

4 EMPIRICAL FINDINGS

4.1 Descriptive analysis

The diversity constructs do not have convergent results in the Lebanese health sector. Table 4 shows that women were well represented in the Lebanese medical centers during the pandemic period. All the mean values of gender diversity are above 3.34. However, there was a low level of age diversity in Lebanese medical centers. The result shows that young employees were not well represented in different hierarchical levels in the Lebanese health sector in spite of the fact that these young employees were provided career development opportunities. Moreover, the results in Table 4 indicate that the value diversity was moderated in the Lebanese healthcare sector during the pandemic period. The average means of value diversity are ranged from 3.01 to 3.44.

TABLE 4. Descriptive statistics of diversity components
Mean SD
Age diversity A1 Young employees were proportionally presented in senior positions 1.24 0.95
A2 Young employees were proportionally presented in managerial positions 2.79 1.25
A3 Young employees were proportionally presented in non-managerial positions 2.74 1.64
A4 Fair treatment with young 3.34 0.74
A5 Career development and opportunities were provided for young 3.62 1.02
Gender diversity G1 Women were proportionally presented in senior positions 3.34 0.91
G2 Women were proportionally presented in managerial positions 3.78 1.31
G3 Women were proportionally presented in non-managerial positions 4.01 0.48
G4 Fair treatment with women 4.02 1.03
G5 Career development and opportunities were provided for women 3.41 0.86
Value diversity V1 Value of employees were similar 3.26 1.25
V2 Employees had similar goals 3.01 0.86
V3 Employees had the same work values 3.44 1.30
V4 Within teamwork, employees had similar goals 3.17 1.02
V5 Within teamwork, employees had similar values 3.22 0.98

The Lebanese health sector showed high ability to innovate their process and organizational procedures (Table 5). During the pandemic period, the Lebanese medical centers improved their services speed, logistics, and procedures. They revised their cost and allocated them to cover pandemic costs. Furthermore, they upgraded and modified their managerial procedures, human resources management, managerial cycle, and strategic decisions. However, the medical centers were not focusing on the technological level during the Covid-19 pandemic period. They did not innovate their software, technologies, and management information system.

TABLE 5. I descriptive statistics of innovation components
Mean SD
Process innovation P1 Speed of services were modified and upgraded 3.13 0.84
P2 Logistics were modified and upgraded 3.75 1.32
P3 Procedures were modified and upgraded 4.12 0.66
P4 Technologies and software were modified and upgraded 2.15 0.40
P5 Cost allocations were modified 4.24 0.62
Organizational innovation O1 Cycle management were modified 3.24 1.01
O2 Human resource management were modified 4.22 0.81
O3 Management information system were modified 2.49 1.22
O4 Actions were implemented based on customers feed back 3.09 1.09
O5 New strategic decisions were implemented 3.96 1.41
Q6 New managerial procedures (were implemented) 4.24 0.48

Table 6 shows that the mean values of financial performance indicators were very low (between 1 and 2.25) while the mean values of organizational performance indicators were above the average (between 3.05 and 3.96). Thus, the financial situation of the Lebanese health sector was very critical during the pandemic period. However, physicians, nurses, and employees showed high levels of commitment and engagement. The level of patients' satisfaction during the covid-19 pandemic period was very low and not convergent (Table 6). The mean values of medical service quality and facilities and hygiene are 2.85 and 2.72, respectively, while the mean value of staff quality is 3.75.

TABLE 6. Descriptive statistics of performance components
Mean SD
Financial performance FP1 Growth in revenue 2.19 0.39
FP2 Growth in assets 2.05 1.08
FP3 Growth in return on investment 1.32 1.24
FP4 Growth in return of profit margin 2.25 1.13
Organizational performance OP1 Satisfaction level of employees 3.05 1.09
OP2 Engagement level of employees 3.78 1.11
OP3 Productivity level of employees 3.56 0.93
OP4 Commitment level of employees 3.96 0.72
Patients performance PP1 Satisfaction level after receiving the medical service 2.94 1.38
PP2 Recommendation of the healthcare center to others 2.78 1.52
PP3 Quality level of medical service 2.85 1.44
PP4 Quality level of staff member (care and attentiveness) 3.75 1.29
PP5 Facilities, hygiene, and communication level 2.72 1.01

4.2 Causal relationships and hypotheses testing

The SEM was employed to explore the relationship between diversity, entrepreneurial innovation, and performance of the Lebanese healthcare sector during the Covid-19 pandemic period. The confirmatory factor analysis (CFA), values of composite reliability (CR), average variance extract (AVE), and Cronbach's alpha (Cronbach a) reveal that the SEM model used in this research has a high level of reliability (Table 7). The values of CFA are greater than 0.6, the minimum threshold, the values of CR and Cronbach's alpha are above than 0.7, the minimum acceptable level and, finally the values of the Average Values Extracted are greater than 0.5, the minimum threshold, indicating that the model is reliable and consistent.

TABLE 7. Factor loads, CR, AVE, and Cronbach α indices
Diversity Performance Innovation
Variable (construct) items Factor loads CR AVE α Variable (construct) items Factor loads CR AVE α Variable (construct) items Factor loads CR AVE α
↓ (Age) 0.881 0.762 0.823 ↓ (Financial) 0.872 0.735 0.824 ↓ (Process) 0.862 0.794 0.897
A1 0.832 FP1 0.812 P1 0.762
A2 0.743 FP2 0.873 P2 0.763
A3 0.842 FP3 0.866 P3 0.757
A5 0.786 FP4 0.841 P4 0.734
A6 0.846 ↓ (Organizational) 0.876 0.743 0.828 P5 0.826
↓ (Gender) 0.911 0.874 0.844 OP1 0.810 ↓ (Organization) 0.895 0.754 0.834
G1 0.852 OP2 0.874 O1 0.844
G2 0.840 OP3 0.863 O2 0.762
G3 0.867 OP4 0.838 O3 0.855
G4 0.772 ↓ (Patients) 0.933 0.892 0.902 O4 0.776
G5 0.791 PP1 0.862 O5 0.852
↓ (Value) 0.920 0.863 0.895 PP2 0.884 Q6 0.821
V1 0.837 PP3 0.713
V2 0.866 PP4 0.840
V3 0.771 PP5 0.753
V4 0.873
V5 0.725

All the validity indices (IFI:Incremental Fit-Index; NFI:Fitness of Extracted-Index; NNFI: Non-Normal Fit-Index; RMR: Root Mean Square of Residuals; SRMR: Standard Root Mean Square Residual; RMSEA: Root Mean Square of Approximation and Chi-Square) are within the acceptable standards and thresholds (Table 8). The values of incremental fit-index, non-normal fit-index and fitness of extracted-index are above 0.9, the minimum acceptable threshold. The values of root mean square of residuals and standard root mean square residual are close to zero, the acceptable standard. And finally, the values of Root Mean Square of Approximation and Absolute Value of the Residuals are within the acceptable standard. They are less than 0.1 and 3, respectively. Thus, all items and constructs must be maintained.

TABLE 8. Validity indices
Indices Description Value Standard
(IFI) Incremental fit-index 0.943 Greater than (0.9)
(NFI) Fitness of extracted-index 0.990 Greater than (0.9)
(NNFI) Non normal fit-index 0.961 Greater than (0.9)
(RMR) Root mean square of residuals 0.0926 Close to (0.1)
(SRMR) Standard root mean square residual 0.062 Close to (0)
(RMSEA) Root mean square of approximation 0.023 Less than (0.1)
(Chi-Square/df) Absolute value of the residuals 1.358 Less than (3)

The results in Table 9 shows all the causal pathways between diversity, entrepreneurial innovation, and performance of the Lebanese healthcare sector during the Covid-19 pandemic period. The analyses of all the results are presented in the three next subsections.

TABLE 9. SEM results
Structural path Path coefficient t-value p-value Conclusion
Diversity ➔ Innovation
Age diversity ➔ Process innovation 0.152 1.312 0.219 Not supported
Gender diversity ➔ Process innovation 0.256 3.635*** 0.003 Supported
Value diversity ➔ Process innovation 0.135 0.669 0.519 Not supported
Age diversity ➔ Organizational innovation 0.127 1.722 0.116 Not supported
Gender diversity ➔ Organizational innovation 0.302 4.93*** 0.000 Supported
Value diversity ➔ Organizational innovation 0.116 1.095 0.299 Not supported
Innovation ➔ Performance
Process innovation ➔ Financial performance 0.133 1.556 0.151 Not supported
Process innovation➔ Organizational performance 0.236 1.326 0.214 Not supported
Process innovation ➔ Patient performance 0.124 1.272 0.232 Not supported
Organizational innovation ➔ Financial performance 0.039 1.432 0.183 Not supported
Organizational innovation ➔ Organizational performance 0.413 3.421 0.007 Supported
Organizational innovation ➔ Patient performance 0.396 4.424*** 0.000 Supported
Diversity ➔ Performance
Age diversity ➔ Financial performance 0.084 0.735 0.479 Not supported
Gender diversity ➔ Financial performance 0.105 0.963 0.358 Not supported
Value diversity ➔ Financial performance 0.094 1.542 0.154 Not supported
Age diversity ➔ Organizational performance 0.260 3.894*** 0.000 Supported
Gender diversity ➔ Organizational performance 0.313 4.423*** 0.000 Supported
Value diversity ➔ Organizational performance 0.167 1.722 0.116 Not supported
Age diversity ➔ Patient performance 0.248 4.081*** 0.001 Supported
Gender diversity ➔ Patient performance 0.371 3.938*** 0.001 Supported
Value diversity ➔ Patient performance 0.710 0.494 0.710 Not supported
*p < .05 / **p < .01 / ***p < .001

4.2.1 Diversity ➔ entrepreneurial innovation

The results of SEM presented in Table 9 reveal a positive and significant impact of gender diversity on both organizational innovation and process innovation. The coefficient causal pathway from gender diversity to organizational innovation is (+0.302) and from gender diversity to process innovation is (+0.256). However, the impact of the two different types of diversity (age and value) is not significant. Thus, the third hypothesis H3 that stated that “Diversity has a positive impact on the innovation in the healthcare sector during the Covid-19 pandemic period” is partially supported in the case of gender diversity but not supported in the case of age and value diversity.

The positive impact of gender diversity is consistent and confirms the findings from previous studies (Gallego & Gutiérrez, 2018; Mir-Babayev et al., 2017) in the medical and non-medical sectors. Therefore, the presence of women in the Lebanese health sector improved the level of entrepreneurial innovation and ideas generation during the Covid-19 pandemic period. Two managerial implications could be deduced from these findings. The adoption of entrepreneurial innovation by the medical and non-medical managers improved organizational efficiency in the areas of management cycle, human resource management, strategic decision, and managerial procedures. Moreover, the high involvement of women in the Lebanese healthcare sector has been beneficial as it led to improvement in the speedy delivery of medical services, procedures, and logistics. With respect to the weak nexus of age and value diversity with entrepreneurial innovation, there is a need for managers in the Lebanese healthcare sector to revise their managerial practices to accommodate age and value diversities because of the inherent benefits of both dimensions. Specifically, the healthcare centers have to empower young employees and utilize their dynamism, resourcefulness, and creative capacity during and after the pandemic. Moreover, the executives should appreciate value diversity.

4.2.2 Entrepreneurial innovation ➔ performance

The result in Table 9 shows a positive and significant impact of organizational innovation on patient performance and organizational performance. The coefficient causal pathway from organizational innovation to organizational performance is (+0.413) and from organizational innovation to patient performance is (+0.396). On the other hand, the result does not reveal any significant impact of process innovation on financial, organizational, and patient performance. Moreover, there is no significant impact from organizational innovation on the financial performance of Lebanese medical centers. Thus, the second hypothesis H2 that stated that “Entrepreneurial Innovation has a positive impact on the performance of healthcare sector during the Covid-19 pandemic period” is partially supported. These observed results are in line with several scholars like Čadil et al. (2021), Akinwale, (2020); Wang et al., (2020); El-Chaarani et al. (2021).

During the pandemic period, the Lebanese health sector faced several socio-economic challenges. Despite the adoption and implementation of entrepreneurial innovation by the Lebanese health centers, there was a sharp drop of their financial indicators. This finding is logical and consistent with the reality across the globe because the lockdowns, confinement, and associated economic recession that came with Covid-19 pandemic affected the outpatients' departments and other income sources, thereby neutralizing the impact of entrepreneurial innovation on the financial performance. However, the organizational innovation (an aspect of entrepreneurial innovation) implemented during the pandemic had positive impact on several organizational performance indicators such as the satisfaction, productivity, engagement, and commitment of employees. Similarly, the organizational innovation increased the quality of health service and thus led to improve the level of patient satisfaction. The policy implication of this is that the top executives in the Lebanese healthcare sector have to sustain the gains from organizational innovation during the pandemic and post-pandemic period; and they must improve the process innovation since there is now causal pathway presently with the three performance metrics (financial performance, organizational performance, and patient performance). It is particularly expedient for the top management in the health sector to employ new process innovation and disruptive practices that would enhance financial performance and non-financial performance in the health sector.

4.2.3 Diversity ➔ performance

The result of SEM in Table 9 reveals that age diversity has a positive impact on organizational and patient performance. The coefficient causal pathway from age diversity on organizational performance is (+0.260) and from age diversity on patient performance is (+0.248). The result also shows that gender diversity increases organizational and patient performance. The coefficient causal pathway from gender diversity on organizational performance is (+0.313) and from gender diversity on patient performance is (+0.371). Oppositely, the result does not show any significant causal pathway between value diversity and performance. Moreover, there is no significant causal pathway between diversity (age and gender) and financial performance. Therefore, the first hypothesis H1 in which “Diversity has a positive impact on the performance of the health sector during the Covid-19 pandemic period” is partially supported. This result confirms several empirical studies in the health sector (Bradley, 2020; Brimhall, 2019; Gomez & Bernet, 2019; Koopmans et al., 2018; Rosen et al., 2018; Sfantou et al., 2017; Smith et al., 2018; Yousaf et al., 2021).

The result also reveals a potential indirect impact of gender diversity on patient satisfaction through organizational innovation. The direct coefficient causal pathway between gender diversity and patient satisfaction is (+0.371) while the indirect coefficient causal pathway between gender diversity and patient satisfaction through organizational innovation is (+0.396). Therefore, gender diversity can increase organizational innovation and thus leads to improve the level of patient satisfaction. During the Covid-19 pandemic period, executives and managers in the medical sector succeeded to improve organizational performance and patient satisfaction through efficient implementation of diversity management. However, they failed to increase the financial performance of the health sector due to the severity of Covid-19 shocks on the Lebanese economic conditions.

Figure 6 summarizes all causal pathways of the SEM between innovation, diversity, and performance. Arrows in bold showed the significant causal pathways, while arrows in gray indicated the non-significant pathways.

Details are in the caption following the image
SEM results

5 DISCUSSION AND POLICY SUGGESTION

Since the development of COVID-19, the medical centers across the globe and mainly in Lebanon was suffering from several managerial, logistic, financial, and medical challenges. The World Health Organization (2020) and several other scholars like Vrontis et al. (2021) and El-Chaarani et al. (2021) argued that the international healthcare system and all the medical centers across the globe are suffering from new problems like the social pressure on employees due to long lockdown periods, the absence of motivation due to the absence of face-to-face interacting and, low-level of financial profitability and high percentage patients' dissatisfaction due to the closing of many medical units.

Thus, this article has the objective to provide executives in hospital and medical centers managerial insights that could improve the critical situation of healthcare sector and mitigate the negative impacts of the development of COVID-19 virus. In addition, the results of this article also could be used by managers during the social distancing periods to improve the social conditions within medical centers by adopting diverse workforce practice based on efficient communication strategy and elimination of any discrimination type.

Despite the socio-economic pressure on medical centers during the pandemic, the executives always have the managerial tools to motivate their staff and increase both entrepreneurial innovation and overall performance. Executives in healthcare sector could lead their diverse staff, motivate them and inspire them by highlighting their role in helping the society and humanity during pandemic and crisis periods.

To overcome the new challenging problems caused by the COVID-19 pandemic period, executives must boost the entrepreneurial innovation and give their staff a space of creativity during and after the pandemic period because it could lead to improve the quality of medical outcomes and the level of customers satisfactions. The existence of innovation environment within the medical centers also could lead the staff members to act entrepreneurially by introducing new strategic decisions, and innovative managerial procedures.

The adoption of innovative managerial practices through a diverse workforce is an important tool than can be employed by executives in medical centers during the COVID-19 pandemic period. Within this context, executives in healthcare sector must empower and motivate women by giving them the capacity to be implied in top positions. Since the women have high innovation capacity, the implication of women in medical workplace also could improve the level of organizational creativity and thus leads to increase both the organizational performance of the level of customer satisfaction.

Moreover, the executives should not underestimate the role of youth and the existence of heterogeneous age groups of workers in the medical centers during and even after the pandemic period. In the context of age diversity, the medical centers could enhance the level of customers satisfaction since their staffs are combining both the energy of youth and the experience of old members. Age diversity could enhance the capacity of medical centers to adapt with the changes triggered by the pandemic period and thus leads to increase the commitment and engagement of employees to support their organizations and societies.

Innovation and diversity theorists should consider the observed results as a new managerial model that could be employed by executives in the healthcare sector to shape the behavior of the medical and non-medical staff and help to improve the capacity of medical organization to face pandemic and crisis. Toward this direction, the employment of workforce diversity by executives in healthcare sector improves both organizational performance and customer satisfaction and boost the relationship between innovation and overall performance.

6 CONCLUSIONS

The health sector of Lebanon is terribly affected by the COVID-19 epidemic, and its impact on economic situation, social circumstance, and health conditions has been devastating. This empirical study sets out to investigate the correlation among diversity, entrepreneurial innovation, and performance of the Lebanese healthcare sector in the COVID-19 pandemic period. Analyzing the data using the SEM reveals that there is a significant causal pathway between diversity, innovation, and performance. Specifically, the study revealed that managers in major private hospitals in Lebanon faced the turbulent pandemic by adopting entrepreneurial innovation and diversity (especially age, gender, and value). Secondly, gender diversity and age diversity were found to have a positive impact on organizational performance and patient satisfaction. Thirdly, the presence of women in the health sector improves the organizational innovation, and thus subsequently leads to increase organizational performance and patient satisfaction. However, the results do not show any significant causal pathway between entrepreneurial innovation, diversity, and financial performance. Moreover, the result does not show any impact of age diversity and value diversity on entrepreneurial innovation. Finally, there is no significant causal pathway between value diversity and performance and between process innovation and performance.

6.1 Managerial implications

From a practical standpoint, the insights from the literature affirmed that hospitals that accommodate professionals and employees with diverse knowledge, skills inabilities (KSAs) are able to sustain operations during crisis, improve their financial performance, and increase their competitive advantage. The knowledge generated in this article could be helpful to managers, executives, and government in the health sector as coping strategies for mitigating the impact of health or economic crises on operations. In the context of crisis period, it is recommended that managers employ dynamic managerial practices with specific focus on workforce diversity and high level of internal communication. Furthermore, this study provides researchers with an improved understanding on the impact of workforce diversity on entrepreneurial innovation and performance. In addition, it validates the impact of entrepreneurial innovation on performance of healthcare sector during crisis. Moreover, it was affirmed that gender diversity, age diversity, and organizational innovation are the most important determinants of healthcare performance during the pandemic period.

6.2 Theoretical implications

This study enriches extant literature with regards to diversity, entrepreneurial innovation, and performance from the context of the Lebanese health sector. First, this study examines the impact of diversity on entrepreneurial innovation and performance. In the end, empirical findings support the creative discovery and behavioral theories by showing that implementation of organizational innovation could lead to increase patient satisfaction and enhance organizational performance in unstable environments (Cyert & March, 1963). Second, in line with the information processing theory, knowledge-based theory, and resource-based theory, the results affirmed that diversity is an important managerial strategy that could be implemented by managers to generate different views, develop new ideas and increase performance (Chung & Hossain, 2009; Grant, 1996; Mejri et al., 2018; Wernerfelt, 1984).

6.3 Limitations and new research directions

This article has some limitations that should be pointed up and discussed. The first limitation is related to the sample characteristics and size. The sample of the study was extracted from 87 medical centers working in just one country, namely Lebanon. Moreover, beside the 870 patients, the sample was composed of different heterogenous members that work in different departments (administrative, nurse, and physicians). This first limitation calls for further research based on a larger and homogeneous sample extracted from different countries, which will allow the global generalization of the results and offer a promising opportunity for advanced studies related to the relationship between workforce diversity, entrepreneurial innovation, and overall performance. Interesting insights could also be obtained by applying the same research model on different sectors. This can also add more debates about the importance of workforce diversity practices between different sectors.

The second limitation of this research is related to the nature of employed methodology and the period of the study. This research employs a quantitative method based on cross-sectional data extracted during the first quarter of 2021 (at a point in time). Future research could consider a longitudinal structure to reveal the impact of time on the causal pathways between the tree main constructs of this study. As this article employs a pure quantitative method, the development of further qualitative research method is recommended to analyze in depth the impact of diversity practices on both entrepreneurial innovation and performance.

The third limitation of this research is related to nature of workforce diversity and the employed definitions of entrepreneurial innovation and performance. In this research, only three types of diversity are considered namely age, gender, and value diversity. Within this context, it would be fruitful to consider in future research other types of diversity like ethnicity, cultural, knowledge, race, and religion. As for the definition of entrepreneurial innovation and performance, it is highly recommended to employ in future research other dimensions of innovation like service and marketing innovation and other types and measurement of performance.

Beyond all the limitations presented above, it is recommended to include in future research works some moderating variables that could affect the causal pathways between the different constructs tested in this study. Toward this direction, testing the moderating impacts of leadership style of business environment and culture could add fruitful insights to the managerial practices in different sectors and mainly in healthcare sector. Finally, given the excessive employment of new tools in healthcare sector such as Blockchain, Bigdata, Virtual Reality, Internet of Medical Things, and 3D printing, other types of variables, like technological innovation have to be considered in future research.

ACKNOWLEDGMENTS

We acknowledged all academic scholars whose articles, texts, and working papers were referenced, and acknowledged. We also thank respondents that participated in the survey, as well as the management of the sampled hospitals for providing access.

    CONFLICT OF INTEREST

    The authors declare that they have no conflict of interest.

    Biographies

    • Dr. Hani El-Chaarani holds a Ph.D. in Financial Management from the University of Bordeaux in France, a Master's Degree in Management from Institut d'Administration des Entreprises (IAE), Bordeaux, France. He also has a Master's degree in Accounting and Finance from the Lebanese University in Beirut including a B.Sc. in Finance and Accounting from the Lebanese University in Tripoli. Currently works as the Director of the faculty of Business Administration, Beirut Arab University. His research interests are in the areas of Financial Market, Corporate Finance, Financial Market Behaviors, Corporate governance, Sustainable Development, Entrepreneurship, and Family Firms management. He has several quality publications with growing impacts and citations to his credit. He attended has attended/delivered conferences/seminar papers at several conferences.

    • Dr. Lukman Raimi holds a Ph.D. in Entrepreneurship and CSR from the Leicester Business School, De Montfort University Leicester, United Kingdom (an accredited AACSB university) with over 13 years of teaching, research, mentoring, and consulting. Presently, he is an Assistant Professor of Entrepreneurship in the School of Business and Economics (SBE), Universiti Brunei Darussalam (UBD). Prior to joining the UBD, he was an Assistant Professor and the Chair of Entrepreneurship at the American University of Nigeria (AUN). Also, he was formerly the Coordinator of the Graduate Program in the School of Business & Entrepreneurship and the Director Centre for Entrepreneurship in AUN. Besides, he was a former Coordinator of Training and Part-Time Programme at the Centre for Entrepreneurship Development, Yaba College of Technology, Nigeria. He is an Entrepreneurship Educator trained at the Entrepreneurship Development Institute (EDI), Ahmedabad, India, under the World Bank-Step B Project. He had specialized training in Enterprise Education for Employability (EEE) at the Pan-Atlantic University Nigeria under the British Council's sponsorship. He was an alumnus of the Cumberland Lodge Residential Mentoring (2014), Windsor, United Kingdom. He attended 2019 Experiential Classroom XX organized for Entrepreneurship Educators at the University of Tampa, Tampa, Florida, United States. He has attended/delivered conferences/seminar papers in Turkey, Malaysia, Ghana, Togo, India, Belfast, Leicester, The United States. His publications are listed in Scopus, Researchgate, Publons, and Google Scholar. His research interests include: Entrepreneurship: Social Entrepreneurship, Entrepreneurial/Digital Innovation, Medical Entrepreneurship, Development Economics, CSR & Sustainability, SDGs, and Family Business

    DATA AVAILABILITY STATEMENT

    The authors affirm the availability of data and material used for this research. There are no competing interests. The research is independent and was not funded by any donor or funding agency. Both authors made good contributions to the production of the paper. The first author is the lead, and the second author is both the co-author and corresponding person. We acknowledged all scholars and respondents that participated in the survey, as well as the hospitals for providing access.

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