Supply Chain Management in Hospitals: Impetus from Organizational and Behavioral Theories

Purpose Objective of this paper is to develop and discuss a theoretical foundation of supply chain management in hospitals based on organizational and behavioral theories with the aim of explaining how hospitals can structure and manage their supply chain. This enables hospital managers to reduce costs and to improve medical outcome despite growing competition and uncertainty of forthcoming federal regulations. Design/methodology/approach In this paper organizational and behavioral theories are discussed according to a potential contribution to better understand supply chain management in hospitals. Findings The discussed theories deliver valuable contribution to better understand supply chain management. The market-based view helps to analyze the competitive environment by applying Porters Five Forces hospitals. The resource-based view helps managers to develop an understanding of what their key resources are. Network theory and stakeholder theory give guidance on how to identify the most relevant partners. As relationships between different actors exists by nature, principal agent theory helps to reduce agency-costs. Research limitations/implications The contribution/influence of organizational and behavioral theories on the understanding of supply chain management in hospitals is discussed on a purely conceptual level. Further research may explore if and how these theories are applied in practice, and if and how managers in hospitals make decisions following/applying these theories. Practical implications A better understanding of organizational and behavioral theories can provide normative support to important management decisions in hospital supply chains, such as the strategic alignment, handling essential resources, outsourcing, protection against opportunism, or relations with stakeholders. Originality/value Organizational and behavioral theories are discussed; important concepts and aspects of these theories are highlighted and applied in a new field (hospitals) in order to better understand supply chain management.