Inter-Organizational Service Delivery in Chinese Hospital Industry: A Social Exchange Perspective

Huibin SHI, Yuan LI

Abstract


This article develops and tests a conceptual framework to shed light on relationship benefits and the inter-organizational patient referral process between Chinese hospitals. Based on a sample of 175 dyadic pairs of responses, the study empirically tests for reciprocal behaviors in inter-organizational service delivery process. Chinese hospitals can be divided into low and high level categories, and their benefits in the cooperation are different. The results indicated that performance improvement and knowledge acquisition as the benefits of low level hospitals positively influence their willingness of providing upstream patient referrals to their partner, and market development as the benefits of high level hospitals positively influences their willingness of providing downstream patient referrals to their partner. Thus, the realization of each party’s benefits has a significant effect on the success of inter-organizational healthcare delivery. Some implications are provided for practitioners, academics, governments as well as the public.


Keywords


Reciprocity; Knowledge acquisition; Inter-organization healthcare delivery; Market development; Patient referrals

Full Text:

PDF

References


Axelrod, R. (1984). The evolution of cooperation. New York: Basic Book, Inc..

Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.

Bloom, G., & Gu, X. (1997). Health sector reform: Lessons from China. Social Science & Medicine, 45(3), 351-360.

Boonekamp, L. C. (1994). Marketing for health-care organizations: An introduction to network management. Journal of Management In Medicine, 8(5), 11-24.

Campbell, D. T., & Fiske, D. W. (1959). Convergent and discriminant validation by the multitrait-multimethod matrix. Psychological Bulletin, 56(2), 81-105.

Cegarra-Navarro, J. G. (2005). An empirical investigation of organizational learning through strategic alliances between SMEs. Journal of Strategic Marketing, 13(1), 3-16.

Chandler, A. D. (1991). The Functions of the HQ unit in the multibusiness firm. Strategic Management Journal, 12(8), 31-50.

Churchill, J. G. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73.

Collins, J. D., & Hitt, M. A. (2006). Leveraging tacit knowledge in alliances: The importance of using relational capabilities to build and leverage relational capital. Journal of Engineering & Technology Management, 23(3), 147-167.

Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, (16), 297-334.

Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874-900.

Das, T. K., & Teng, B. S. (2002). Alliance constellations: A social exchange perspective. Academy of Management Review, 27(3), 445-456. doi: 10.2307/4134389

Entwistle, V. A., & Quick, O. (2006). Trust in the context of patient safety problems. Journal Of Health Organization And Management, 20(5), 397-416.

Fehr, E., & Gachter, S. (2000). Fairness and retaliation: The economics of reciprocity. Journal of Economic Perspectives, 14(3), 159-181.

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

Geringer, J. M., & Herbert, L. (1991). Measuring performance of international joint ventures. Journal of International Business Studies, 22(2), 249-264.

Glaister, K. W., & Buckley, P. J. (1996). Strategic motives for international alliance formation. Journal of Management Studies, 33(3), 301-332.

Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement. American Sociological Review, 25(2), 161-178.

Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17, 109-122.

Grant, R. M., & Baden-Fuller, C. (2004). A knowledge accessing theory of strategic alliances. Journal of Management Studies, 41(1), 61-84.

Gupta, A. K., & Govindarajan, V. (2000). Knowledge flows within multinational corporations. Strategic Management Journal, 21(4), 473-497.

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate analysis. Englewood: Prentice Hall International.

Hesketh, T., & Zhu, W. X. (1997). Health in China. The healthcare market. British Medical Journal, 314(7094), 1616-1618.

Hitt, M. A., Ahlstrom, D., Dacin, M. T., Levitas, E., & Svobodina, L. (2004). The institutional effects on strategic alliance partner selection in transition economies: China vs. Russia. Organization Science, 15(2), 173-185.

Huckman, R. S. (2006). Hospital integration and vertical consolidation: An analysis of acquisitions in New York state. Journal of Health Economics, 25(1), 58-80. doi: http://dx.doi.org/10.1016/j.jhealeco.2005.05.003

Jacobs, D. (1974). Dependency and vulnerability: An exchange approach to the control of organizations. Administrative Science Quarterly, 19(1), 45-59.

Keohane, R. O. (1986). Reciprocity in international relations. International Organization, 40(1), 1-27.

Klischewski, R., & Wetzel, I. (2003). Serviceflow management for health provider networks. Logistics Information Management, 16(3/4), 259-269.

Kumar, R., & Nti, K. O. (1998). Differential Learning and Interaction in alliance dynamics: A process and outcome discrepancy model. Organization Science, 9(3), 356-367.

Levine, S., & White, P. E. (1961). Exchange as a conceptual framework for the study of interorganizational relationships. Administrative Science Quarterly, 5(4), 583-601.

Li, L., & Benton, W. C. (2003). Hospital capacity management decisions: Emphasis on cost control and quality enhancement. European Journal of Operational Research, 146(3), 596-614.

Li, L., & Benton, W. C. (2006). Hospital technology and nurse staffing management decisions. Journal of Operations Management, 24(5), 676-691.

Li, S. X., & Rowley, T. J. (2000). Is it better to be talented, popular or nice? The Role of Experiential and Non-Experiential Information in Interorganizational Partner Selection. Academy of Management Proceedings, 1-6.

Nakamura, S. (2010). Hospital mergers and referrals in the United States: Patient steering or integrated delivery of care? Inquiry - Excellus Health Plan, 47(3), 226-241.

Narasimhan, R., & Nairb, A. (2005). The antecedent role of quality, information sharing and supply chain proximity on strategic alliance formation and performance. International Journal of Production Economics, 96(3), 301-313.

Oliver, A. L., & Montgomery, K. (1996). A network approach to outpatient service delivery systems: resources flow and system influence. Health Services Research, 30(6), 771-789.

Palmer, A. (2002). Cooperative marketing associations: an investigation into the causes of effectiveness. Journal of Strategic Marketing, 10(2), 135-156.

Rodriguez, C. M., & Wilson, D. T. (2002). Relationship bonding and trust as a foundation for commitment in U.S.-Mexican strategic alliances: A Structural equation modeling approach. Journal of International Marketing, 10(4), 53-76.

Safran, D. G., Taira, D. A., Rogers, W. H., Kosinski, M., Ware, J. E., & Tarlov, A. R. (1998). Linking primary care performance to outcomes of care. Journal of Family Practice, 47(3), 213-220.

Sahlins, M. (1972). Stone age economics. New York: Aldine De Gruyter.

Shenkar, O., & Li, J. (1999). Knowledge search in international cooperative ventures. Organization Science, 10(2), 134-143.

Sparrowe, R. T., & Liden, R. C. (1997). Process and structure in leader-member exchange. Academy of Management Review, 22(2), 522-552.

Stocking, G. W., & Mueller, W. F. (1957). Business reciprocity and the size of firms. The Journal of Business, 30(2), 73-95.

Tsai, Y. (2013). Health care industry, customer orientation and organizational innovation: A survey of chinese hospital professionals. Chinese Management Studies, 7(2), 215-229.

Wade-Benzoni, K. A. (2002). A golden rule over time: Reciprocity in intergenerational allocation decisions. Academy of Management Journal, 45(5), 1011-1028.

Wood, V. R., Bhuian, S., & Kiecker, P. (2000). Market orientation and organizational performance in not-for-profit hospitals. Journal of Business Research, 48(3), 213-226.

WorldBank. (1997). Financing health care: Issues and options for China. Washington, DC: World Bank.

Yli-Renko, H., Autio, E., & Tontti, V. (2002). Social capital, knowledge, and the international growth of technology-based new firms. International Business Review, 11(3), 279-304.

Young-Ybarra, C., & Wiersema, M. (1999). Strategic flexibility in information technology alliances: The Influence of transaction cost economics and social exchange theory. Organization Science, 10(4), 439-459.




DOI: http://dx.doi.org/10.3968/%25x

Refbacks

  • There are currently no refbacks.


Copyright (c)



Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Online Submissionhttp://cscanada.org/index.php/css/submission/wizard

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use four mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: [email protected]; [email protected]; [email protected]; [email protected]

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:[email protected]; [email protected]

Copyright © Canadian Academy of Oriental and Occidental Culture