Impact of Digital Technology and Digital Usage through Digital Infrastructure on The Competitive Advantage of Hospitals

Abstract

Hospitals in Bukittinggi City face increasing competition and rising patient expectations, requiring effective digital transformation to sustain competitive advantage. This study aims to analyze the impact of digital technology, digital usage, and digital infrastructure on the competitive advantage of hospitals in Bukittinggi, West Sumatra, Indonesia. A quantitative research approach was employed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) to examine the relationships among variables. Data were collected from hospital employees who actively use digital systems in operational activities. The findings indicate that digital technology and digital usage significantly influence the development of digital infrastructure. Furthermore, digital infrastructure plays a critical role in strengthening hospital competitive advantage through improved system reliability, data security, and service efficiency. However, digital usage alone does not directly enhance competitiveness without adequate infrastructure support. The study concludes that successful digital transformation in hospitals requires integrated digital strategies that combine technological adoption, infrastructure readiness, and human resource capability. Therefore, hospitals are recommended to strengthen digital infrastructure, enhance staff digital literacy through continuous training, and implement integrated digital systems to improve service quality, operational efficiency, and long-term competitiveness.