Supplier relationship management and organizational performance of hospitals in an emerging economy context

Abstract

Purpose Integrating the social exchange and resource dependency theories, the study aims to comparatively examine the supplier relationship management (SRM) dimensions and organizational performance links of private and public hospitals in Ghana. Design/methodology/approach Comparative in nature; employing a quantitative approach; and using simple random and convenience sampling techniques, the study tested the proposed hypotheses using structural equation model-partial least square based on 205 usable questionnaires. Partial least square-multigroup analysis (PLS-MGA) was performed to test the significance of the difference in the parameters between the two samples: private and public hospitals in Ghana. Findings The dimensions of SRM (communication, cooperation, trust, atmosphere and adaptation) have a significant, positive impact on private hospitals’ performance in Ghana. Similarly, communication and trust were found to be positively and significantly correlated to public hospitals’ performance. In contrast, cooperation, atmosphere and adaptation dimensions showed no significant, positive effect on public hospitals’ performance. PLS-MGA disclosed that these observed differences in the findings between the private and public hospitals in Ghana are statistically significant. Research limitations/implications The findings of the study, while limited to hospitals in Ghana, are likely to be relevant in other emerging economies for effective and enhanced supply chain relationship management. Practical implications The findings provide pragmatic insights for marketing practitioners and organizational leaders of hospitals about the significance of SRM dimensions in today’s globalized marketplace, and how to nurture them to enhance organizational performance. Originality/value The value of the study lies in the examination of the relationship between SRM and organizational performance in the health sector by comparing private and public hospitals in an emerging economy context.