Faith as competitive strategy: The value-based leadership advantage in Christian hospitals

Abstract

Background: Christian foundation private hospitals in Indonesia must navigate a challenging healthcare environment characterised by limited resources, regulatory requirements and rising patient expectations while maintaining their religious identity in a non-Christian context.
Aim: This research explores how value-based leadership practices enable Christian foundation private hospitals in Indonesia to construct competitive strengths amid market challenges.
Setting: Researchers conducted the study across 12 Christian foundation private hospitals on Java Island, Indonesia, varying from 120 to 450 beds in size, with histories spanning 45 to over 100 years, covering urban and semi-urban areas across West, Central, and East Java.
Method: Drawing upon the resource-based view (RBV) theory, servant leadership theory, and institutional theory, this research utilises a qualitative multiple case study design based on Gioia methodology. The study analyses 12 Christian hospitals through 35 executive interviews, 48 middle manager perspectives, examination of 144 organisational documents and field observations over 36 days.
Results: Four value-based leadership dimensions contribute to competitive advantage: servant leadership, spiritual stewardship, empathetic management and God-integrated vision through value embodiment.
Conclusion: The results demonstrate that value-based leadership builds enduring competitive advantage while maintaining religious identity amid market forces. The findings provide a workable model for leadership capability development in faith-based organisations.
Contribution: This research extends RBV theory by showing how values function as strategic assets meeting VRIO criteria. The study shows value-based leadership results in sustainable competitive advantage.