RE-EXAMINING THE RELATIONSHIP BETWEEN SUPERVISORY BOARD CAPABILITY AND DIRECTOR BOARD CAPABILITY IN PUBLIC HOSPITALS: INSIGHTS FROM NON-SIGNIFICANT FINDINGS

Abstract

Governance structures in Indonesian public hospitals presume a direct relationship between the capabilities of the Supervisory Board and the Board of Directors. This study examines whether that assumption holds by testing the influence of Supervisory Board capability on Director Board capability. A quantitative approach was employed, using stratified sampling across 211 accredited public hospitals and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). Results indicate no significant effect between the two variables, suggesting a level of autonomy and independence in each board’s function. The findings highlight the potential role of mediating factors such as communication breakdowns, institutional culture, and structural separation. These results challenge conventional assumptions of top-down governance influence and call for a more relational, context-sensitive framework. Interpreted through a post-humanist lens, the study reframes hospital governance as a distributed system of knowledge, agency, and constraint that extends beyond traditional human hierarchies.