A Holistic View on the Adoption and Cost-Effectiveness of Technology-Driven Supply Chain Management Practices in Healthcare

Abstract

Healthcare supply chains are complex systems facing challenges in delivering high-quality care while maintaining cost-effectiveness. Research on inventory management and control, the heart of the healthcare supply system, has demonstrated that these targets can be reached by managing inventories efficiently while aiming at desired service levels. Although this can be enabled by adopting various supply chain management practices, the healthcare sector appears to lag compared to other industries. Seeking to investigate these aspects, this study draws on operations management literature, identifies and categorizes technology-driven supply chain management practices that are applied in hospital operations, develops a holistic conceptual framework delineating the key factors influencing their adoption in healthcare facilities, and examines their aggregated impact on financial performance. The research model is tested using structural equation modeling with survey data collected from Greek public hospitals. The study results indicate that technological readiness, organizational readiness, perceived benefits, and hospital size significantly influence the adoption of these practices in hospital supply chains. Moreover, they show a statistically significant association between the supply chain management practices applied and improved hospital cost performance, suggesting greater urgency for hospitals to exploit them fully. Theoretical and practical implications of the findings are discussed.