Examining Governance in Hospital Operations: The Effects of Trust and Physician Employment in Achieving Efficiency and Patient Satisfaction

Governance can be challenging in healthcare operations, particularity when attending physicians lack financial relationships with the hospital. In the absence of formal incentive system mechanisms, it may be possible to use informal relational governance to synchronize activities. We use Relational Resource Based View and Agency theory to conceptualize trust (an informal governance mechanism) and physician employment (a formal governance...