Supplier relationship management
and organizational performance of
hospitals in an emerging
economy context
A comparative study
Stephen Oduro
Faculty of Economics, Universita degli studi Internazionali di Roma, Roma, Italy
Kwamena Minta Nyarku
Department of Marketing and Supply Chain Management,
School of Business College of Humanities and Legal Studies,
University of Cape Coast, Cape Coast, Ghana, and
Rotimi A. Gbadeyan
Department of Marketing, University of Ilorin, Ilorin, Nigeria
Abstract
Purpose – Integrating the social exchange and resource dependency theories, the study aims to
comparatively examine the supplier relationship management (SRM) dimensions and organizational
performance links of private and public hospitals in Ghana.
Design/methodology/approach – Comparative in nature; employing a quantitative approach; and
using simple random and convenience sampling techniques, the study tested the proposed hypotheses using
structural equation model-partial least square based on 205 usable questionnaires. Partial least square-
multigroup analysis (PLS-MGA) was performed to test the significance of the difference in the parameters
between the two samples: private and public hospitals in Ghana.
Findings – The dimensions of SRM (communication, cooperation, trust, atmosphere and adaptation) have a
significant, positive impact on private hospitals’ performance in Ghana. Similarly, communication and trust
were found to be positively and significantly correlated to public hospitals’ performance. In contrast,
cooperation, atmosphere and adaptation dimensions showed no significant, positive effect on public hospitals’
performance. PLS-MGA disclosed that these observed differences in the findings between the private and
public hospitals in Ghana are statistically significant.
Research limitations/implications – The findings of the study, while limited to hospitals in Ghana,
are likely to be relevant in other emergingeconomies for effective and enhanced supply chain relationship
management.
Practical implications – The findings provide pragmatic insights for marketing practitioners and
organizational leaders of hospitals about the significance of SRM dimensions in today’s globalized
marketplace, and how to nurture them to enhance organizational performance.
Originality/value – The value of the study lies in the examination of the relationship between SRM and
organizational performance in the health sector by comparing private and public hospitals in an emerging
economy context.
Keywords Supplier relationship management, Organizational performance,
Social exchange theory, Resource dependency theory, PLS-MGA, Ghana, Supply chain management
Paper type Research paper
Organizational
performance of
hospitals
Received 25 March 2019
Revised 7 July 2019
26 September 2019
19 December 2019
Accepted 14 January 2020
Journal of Modelling in
Management
© Emerald Publishing Limited
1746-5664
DOI 10.1108/JM2-03-2019-0072
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