How organizational identity affects hospital performance: comparing predictive power of mission statements and sector affiliation

Organizational identity is an important concept in organizational theory, as it can contextualize the behavior of organizations and members. The literature presents divergent perspectives on organizational identity: some studies have characterized organizational identity as constrained by institutional forces, whereas others have contended it is socially constructed by organizational members. Studies have largely focused on the former perspective, measuring organizational identity by sector affiliation; the latter approach has rarely been empirically tested. Therefore, in addition to sector affiliation, this article proposes a different approach to operationalizing organizational identity by examining hospitals' mission statements. The study also examines which of these dual forces have more predictive power regarding organizational performance. Together with hospitals' sector affiliation, we test how the presence and frequency of mission statement language regarding access, cost, quality, or unique organizational values affect hospitals' various performance metrics. Regression analyses with 172 acute hospitals in Florida reveal significant relationships between types of mission statement content, sectors, and performance indicators.