Buyer-Supplier Integration and Logistics Performance in Health Care Facilities in Tanzania
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Date
2015
Authors
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Abstract
Purpose
This research concerns logistics performance in public purchasing relationships, and
explores the effect of buyer-supplier integration on supplier logistics performance. The
research focuses in particular on purchasing centralization in health care facilities, and
examine whether centralization of purchasing decision control exercised by the health
authorities will influence the effect of buyer-supplier integration on supplier logistics
performances at the firm level in health care facilities.
Design/methodology/approach
This research is based on basic organization theory, inter-organizational theory, and
supply chain management literature, and examines the combined effect of purchasing
centralization and supplier integration on supplier logistics performance based on
survey data from 164 key informants from public health institutions in Tanzania.
Findings
The analysis reveals that stronger buyer-supplier integration improves supplier
logistics performance significantly, and that stronger centralization of purchasing
decision control by the health authorities reduces the effect of more extensive buyer supplier
integration on supplier logistics performance at the firm level.
Research limitations/implications
Public health institutions in Tanzania are highly regulated and controlled by public
authorities, and this might limit the external validity of this study. Possible effects of
opportunistic behaviour among public agents might also influence the outcome of the
analyses, and further research in other empirical settings and cultural settings is
desirable to test the external validity of the empirical findings.
Practical implications
The local government should focus more on supporting the individual public health
facilities in developing and adapting proper governance mechanisms for their supplier
integration, and be aware of the advantages associated to the alignment of
independent and local supplier coordination at the institutional level.
Social implications
Strong bureaucratic decision control and possible opportunistic behaviour among
public agents and employee in public medicine institutions might represent a threat
against a smooth and effective organization of the medicine supplies in the public
sector.
Original/value
The study provides a valuable theoretical contribution to the supply chain
management research. In particular, the combination of significant contributions from
basic organization theory, principal-agent theory and supply chain management
literature provides a broad and interesting focus on significant antecedents to supplier
logistics performance.
Description
This research concerns logistics performance in public purchasing relationships, and
explores the effect of buyer-supplier integration on supplier logistics performance. The
research focuses in particular on purchasing centralization in health care facilities, and
examine whether centralization of purchasing decision control exercised by the health
authorities will influence the effect of buyer-supplier integration on supplier logistics
performances at the firm level in health care facilities.
Keywords
Organization theory,, supplier logistics performance, purchasing centralization, supplier integration, health sector logistics.