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Digitalization of the Healthcare Supply Chain through the Adoption of Enterprise Resource Planning (ERP) Systems in Hospitals: An Empirical Study on Influencing Factors and Cost Performance

Author

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  • Christos Bialas

    (Department of Industrial Engineering and Management, International Hellenic University, 57400 Thessaloniki, Greece)

  • Dimitrios Bechtsis

    (Department of Industrial Engineering and Management, International Hellenic University, 57400 Thessaloniki, Greece)

  • Eirini Aivazidou

    (Department of Industrial Engineering and Management, International Hellenic University, 57400 Thessaloniki, Greece)

  • Charisios Achillas

    (Department of Supply Chain Management, International Hellenic University, 57400 Thessaloniki, Greece)

  • Dimitrios Aidonis

    (Department of Supply Chain Management, International Hellenic University, 57400 Thessaloniki, Greece)

Abstract

Rising healthcare costs force healthcare organizations worldwide to reconsider their business strategies. Hospital managers are tasked with lowering operating costs while upholding the high quality of care, two goals perceived as contradictory by many healthcare professionals. Attempting to contribute towards reaching these goals, the study explores the digitalization of the healthcare supply chain through the adoption of enterprise resource planning (ERP) systems and its impact on hospital supply chain costs. Established technology adoption theories are synthesized to develop a research model that investigates the adoption of hospital ERP systems and its impact on supply chain cost performance. The framework is validated via structural equation modeling (SEM) with data collected from 107 Greek public hospitals. The results indicate that technological and organizational readiness, hospital size, governmental policies, and perceived benefits have a significant influence on the extent of ERP systems adoption. They also demonstrate a statistically significant association between the use of ERP systems and hospital supply chain costs. The present study highlights the influencing factors of ERP systems adoption in hospitals and provides empirical evidence on the resulting cost benefits., This implies greater urgency for hospitals to digitalize their supply chain by implementing and fully exploiting the ERP systems’ functionality in order to reach their goal of delivering quality care at a lower cost.

Suggested Citation

  • Christos Bialas & Dimitrios Bechtsis & Eirini Aivazidou & Charisios Achillas & Dimitrios Aidonis, 2023. "Digitalization of the Healthcare Supply Chain through the Adoption of Enterprise Resource Planning (ERP) Systems in Hospitals: An Empirical Study on Influencing Factors and Cost Performance," Sustainability, MDPI, vol. 15(4), pages 1-11, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3163-:d:1062916
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    References listed on IDEAS

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    1. Panagiotis Mitropoulos & Ioannis Mitropoulos & Aris Sissouras, 2013. "Managing for efficiency in health care: the case of Greek public hospitals," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(6), pages 929-938, December.
    2. Zhang Zhen & Zahid Yousaf & Magdalena Radulescu & Muhammad Yasir, 2021. "Nexus of Digital Organizational Culture, Capabilities, Organizational Readiness, and Innovation: Investigation of SMEs Operating in the Digital Economy," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    3. Beaulieu, Martin & Bentahar, Omar, 2021. "Digitalization of the healthcare supply chain: A roadmap to generate benefits and effectively support healthcare delivery," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    4. Placide Poba-Nzaou & Sylvestre Uwizeyemungu & Louis Raymond & Guy Paré, 2014. "Motivations underlying the adoption of ERP systems in healthcare organizations: Insights from online stories," Information Systems Frontiers, Springer, vol. 16(4), pages 591-605, September.
    5. Kevin Zhu & Kenneth L. Kraemer & Sean Xu, 2006. "The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business," Management Science, INFORMS, vol. 52(10), pages 1557-1576, October.
    6. Martin Beaulieu & Omar Bentahar, 2021. "Digitalization of the healthcare supply chain: A roadmap to generate benefits and effectively support healthcare delivery," Post-Print hal-03208957, HAL.
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    Cited by:

    1. Barna Laura-Eugenia-Lavinia & Ionescu Bogdan-Ștefan, 2023. "ERP Systems as a Part of Business Digitalization Systems as a Part of Business Digitalization," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 1897-1908, July.

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