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Dissertation 4-17-2013.pdf (1.96 MB)

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Supply Chain Relationships and Refurbishing in the Healthcare Supply Chain

De Jong, Jurriaan L.
http://rave.ohiolink.edu/etdc/view?acc_num=osu1366197687

Abstract Details

2013, Doctor of Philosophy, Ohio State University, Business Administration.
In recent years, healthcare organizations (HCOs) in the United States and across the globe have come under increasing pressure to reduce cost while maintaining high quality of care. Supplies and equipment contribute significantly to the total healthcare cost as these categories account for approximately 40% of HCO spending. The healthcare supply chain is distinctly different from traditional supply chains, and findings from extant supply chain research may therefore not apply to the healthcare supply chain. The relationship between the supply chain members is a key determinant of supply chain excellence. In this dissertation the role of dependence and inter-organizational power and the effect of supply chain relationships in the healthcare supply chain are investigated. Survey data from 276 procurement professionals from US HCOs are analyzed using factor analysis and structural equation modeling. The relationship between an Original Equipment Manufacturer (OEM) and an HCO is interceded by a middleman, the Group Purchasing Organization (GPO). The analysis offers strong empirical evidence that this interceded relationship is positively affected by an OEM’s non-mediated power and that this relationship positively affects the performance of both the OEM and the HCO. The relationship between the GPO and the HCO is positively affected by the GPO’s non-mediated power, but is surprisingly not affected by the GPO’s mediated power. This GPO-HCO relationship furthermore only affects the GPO’s performance. The results suggest that the performance of an HCO is not affected by a relationship with a GPO. The analysis also indicates that when a buyer uses a procurement service provider, such as a GPO, the buying organization can end up in a dependence trap; An HCO’s dependence on the GPO positively affects the HCO’s dependence on the OEM. Furthermore, an HCO’s dependence on a GPO and on an OEM affects the HCO’s assessment of the GPO’s power and the OEM’s power. Specifically, an increase in the HCO’s dependence on the GPO was found to increase the HCO’s assessment of the GPO’s non-mediated power and decrease the HCO’s assessment of the GPO’s use of mediated power. Lastly, an increase in the HCO’s dependence on the OEM yielded an increase in the HCO’s assessment of the OEM’s non-mediated power. Since inter-organizational power affects the supply chain relationships, executives of buying organizations considering or reconsidering procurement outsourcing decisions are cautioned that satisfaction with the relationship with procurement service providers and suppliers may in part and indirectly be caused by the organization’s dependence on the provider and the supplier. Prior to the survey data collection, an extensive field study was conducted, involving HCO executives and the four major OEMs of medical digital imaging equipment. It became apparent that in recent years HCOs have become increasingly interested in refurbished equipment, as a means to reduce capital spending. The OEMs sell new and refurbished equipment to their customers, the HCOs, and a fraction of this equipment is sold with multi-year service contracts. An important problem facing the OEMs involves jointly managing new and refurbished products along with service contracts for new and refurbished products. The OEM needs to make critical decisions with respect to the number of new products sold, the disposition of returned/collected cores, the number of cores bought from third-party brokers and the amount of inventory of finished refurbished products. An analytical model is developed in the dissertation to investigate this managerial problem faced by each of the four major OEMs of medical digital imaging equipment.
W.C. Benton (Advisor)
Peter Ward (Committee Member)
Gökçe Esenduran (Committee Member)
252 p.
Business Administration
Supply Chain management; GPO; inter-organizational power; healthcare; procurement outsourcing; relationship management; strategic sourcing; refurbishing

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Citations

  • De Jong, J. L. (2013). Supply Chain Relationships and Refurbishing in the Healthcare Supply Chain [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1366197687

    APA Style (7th edition)

  • De Jong, Jurriaan. Supply Chain Relationships and Refurbishing in the Healthcare Supply Chain. 2013. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1366197687.

    MLA Style (8th edition)

  • De Jong, Jurriaan. "Supply Chain Relationships and Refurbishing in the Healthcare Supply Chain." Doctoral dissertation, Ohio State University, 2013. http://rave.ohiolink.edu/etdc/view?acc_num=osu1366197687

    Chicago Manual of Style (17th edition)

osu1366197687
441
© 2013, all rights reserved.
This open access ETD is published by The Ohio State University and OhioLINK.