While the hospital is seen as a knowledge-intensive organization in the health services industry, it is conceptualized as an institution for integrating knowledge. This paper aims to explore the development of a knowledge-based theory of the hospital. Therefore, some concerns of the theory of the hospital from knowledge-based view (KBV) are addressed, particularly, the logic of the traditional theory of the hospital, the existence of the hospital, hospital structure, determinants of hospital boundaries, and the nature of coordination within the hospital. By integrating some of the key contributions such as the traditional theory of the hospital, KBV, the theory of the firm, and transaction cost theory, this paper is trying to make some progress in developing some key elements of a knowledge-based theory of the hospital.
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