Abstract
PURPOSE: In the complex and rapidly changing healthcare environment, the dynamic capabilities of frontline employees (FLEs) to integrate resources and adapt to environmental changes are crucial. This study aims to investigate the relationship between FLEs' self-efficacy, dynamic capabilities (including sensing capability and reconfiguring capability), and their impact on service performance. METHODS: Data were collected from a matched sample of 123 doctors and 762 corresponding consumers from two medical aesthetic hospitals in China. SPSS and SmartPLS are used to test the proposed model. RESULTS: The findings indicate that FLEs' self-efficacy positively influences their service performance through the mediation of dynamic capabilities. Moreover, while the direct impact of FLEs' sensing capabilities on service performance was found to be insignificant, it was observed that these capabilities indirectly affect service performance through reconfiguring capabilities. CONCLUSION: This study presents theories and arguments on the role of self-efficacy and dynamic capabilities in improving service performance. These findings contribute to a deeper understanding of how FLEs cultivate the dynamic capability of resource integration, offering valuable insights for the attainment of sustainable competitive advantages.