The influence of dynamic capabilities on hospital-supplier collaboration and hospital supply chain performance

Purpose - The purpose of this paper is to explore the influence of hospital's visibility for sensing (VFS), learning, coordinating and integrating on hospital-supplier collaboration. Second, it explored the influence of hospital-supplier collaboration on hospital supply chain performance. The author also explored how the technology orientation of the medical chain units influences the above linkages. Design/methodology/approach - The study adopted a multi-unit study of different hospital supply chains. Consequently, perceptual data were gathered from seven dominant entities in a typical medical/hospital supply chain: hospitals and clinics, accommodation (i.e. hotels), chemistry and pharmaceutical, marketing/public relations/promotion, medical equipment manufacturers, food and beverage and insurance. The responses were gathered using e-mail survey and were analyzed using structural equation modeling. Findings - Based on 192 completed responses, the author found positive influences of VFS, learning and integrating on hospital-supplier collaboration and a positive impact of hospital-supplier collaboration on hospital supply chain performance. An insignificant influence of hospital's visibility for coordinating was noted on hospital-supplier collaboration. The study argued hospitals to invest more for enriching their dynamic capabilities to diagnose the changes in the environment so as to sustain their collaborative relationships leading to positive performance implications. Originality/value - The study is the foremost to investigate the effects of hospital's dynamic capabilities on its collaborative efforts with its key supplier and their influence on hospital supply chain performance. Also the study is foremost in exploring the importance of technology orientation on hospital dynamic capabilities and hospital-supplier collaboration. An important contribution of the research is the conceptualization of supply chain visibility core components ( visibility of sensing, visibility of learning, visibility of coordinating and visibility of integrating) in the context of hospital supply chains.