Service supply chain risk management in the public healthcare sector

Abstract

PurposeThe study research aims to examine the effects of supply chain management practices on risk mitigating (RM) by studying the correlation between social ties, institutional support, interagency cooperation and external flexibility in public healthcare sectors. Moreover, this research examines the impact of RM on supplier trust, and also the authors examine the relationship among supplier trust and logistics performance.Design/methodology/approachThe authors used a structural equation model (SEM) based on 539 quantitative data from Ethiopian healthcare organizations. The model included control variables like company size and position to understand better how employees perceive risk mitigation.FindingsThe study's findings indicate that interagency collaboration and external flexibility positively affects RM. On the other hand, RM positively impacts supplier trust and also the supplier trust has a positive effects on performance dimensions. This study also shows that RM has not positively impacting institutional support and social ties.Practical implicationsThe study investigation may help the pharmaceutical industry, healthcare service SC agencies and other stakeholders better understand the effects of supply chain management practices on RM and obtain information on progress made thus far.Originality/valueThis research helps managers and their organizations to manage the risk associated with their organizations. Though, this study focuses on Ethiopian healthcare SCM. The authors expect the findings might apply to other countries organizations with comparable demographic or SCM features.