Supply chain innovation and organizational performance in the healthcare industry

TLDR

The study examines how supply chain innovation can improve organizational performance in the healthcare industry. The authors propose and test a structural equation model linking supply‑chain innovation, supplier cooperation, supply‑chain efficiency, and quality‑management practices to organizational performance using data from 243 South Korean hospitals. Results show that supply‑chain innovation positively influences organizational performance through enhanced supplier cooperation, improved efficiency, and stronger quality‑management practices, indicating that continuous innovation drives better performance. Data were collected from large South Korean hospitals (243), limiting generalizability, but the study offers useful planning guidance for the healthcare industry.

Abstract

Purpose The purpose of this paper is to examine supply chain (SC) innovation for improving organisational performance in the healthcare industry. Design/methodology/approach A research model is proposed which describes the impact of SC innovation, supplier cooperation, SC efficiency, and quality management (QM) practices on organisational performance. The proposed research model and hypotheses were tested using structural equation modeling based on data collected from 243 hospitals. Findings The results of the study support that organisational performance is positively associated with constructs of each SC innovation factor. Innovative design of SC has a significant impact on selection of and cooperation with excellent suppliers, improved SC efficiency, and encouragement of QM practices. Research limitations/implications The data used in this study were collected from relatively large hospitals with more than 100 beds in South Korea. The generalization of the study results may be limited by the size of sample hospitals. Originality/value This study provides useful planning information in the healthcare industry. The results suggest successful implementation of SC management is attained through continuous SC innovation with supplier cooperation, which in turn improves organisational performance.