Hospital-supplier integration and hospital performance in Saudi Arabian context

Abstract

Improving hospital supply chain performance has been increasingly essential in the world. Despite this significance, a review of the existing supply chain literature indicates that limited comprehensive studies have been conducted on hospital supply chain performance to date. Within a systematic literature review, this research develops a comprehensive conceptual model based on the impact of hospital-supplier integration on the overall performance of healthcare organisations. Furthermore, the moderating role of lean practices on hospital-supplier integration and hospital performance. The context of this study is the Saudi Arabia healthcare sector, a two-tier healthcare system that is comprised of public and private sectors. To address the research objective, and to test the research hypotheses, this research employs a Structural Equation Modelling (SEM) based on a field survey. The survey was conducted amongst 435 hospitals in Saudi Arabia. A total of 2175 Participants in this study. The results of this study showed that the logistics integration, information sharing, trust, lean practice, and the relationship between hospital supplier integration and hospital performance were positively associated with hospital-supplier integration. In contrast, information technology and hospital size were not positively associated with hospital-supplier integration.   This study has several implications for both theory and practice in a hospital-supplier integration. The theoretical implications include developing a robust framework for a hospital-supplier integration and its impact on hospital performance. In addition, this study examines the validity of the relational view of competitive advantage theory in Saudi Arabia.  Moreover, the implications for practices are also far reaching, as the sample comprises of two types of hospitals currently operating in Saudi Arabia: private, and public under the Ministry of Health