Research Paper

International Journal of Business and Social Science

Vol. 3 No. 16 [Special Issue – August 2012]

The Effect of Service Supply Chain Management Practices on the Public Healthcare

Organizational Performance

Lang Ling Yap

Graduate School of Business

Universiti Sains Malaysia

11800 USM, Penang, Malaysia

Cheng Ling Tan

Graduate School of Business

Universiti Sains Malaysia

11800 USM, Penang, Malaysia

Abstract

This paper builds on to the previous work done on service supply chain management practices and organizational

performance. The aim of this paper is to propose a conceptual framework for examining the relationship between

service supply chain management practices and public healthcare’s organizational performance that recognizes

the mediating effect of alliance integrated network in Malaysia. Supply chain theory such as resource-based view

is found to support the conceptual framework. A total of 5 dimensions of service supply chain management

practices (information and technology management, demand management, customer relationship management,

supplier relationship management, capacity and resource management) were determined to have significant and

positive direct relationship with organizational performance. Additionally, alliance network was found to have

the mediation effect on the direct relationship. The proposed research framework is applied to Malaysian public

healthcare industry which has limited studies.

Keywords: Service supply chain management practices, organizational performance, alliance network,

healthcare industry.

1. Introduction

Today, the largest share of Gross Domestic Product (GDP) in developed countries is accounted by the service

sector. Above and beyond, the major employment opportunities in developed and developing countries are also

largely contributed by service sector (Breen & Crawford, 2004). In Malaysia, the service sector has been the main

source of GDP, which contributed to 58% of GDP in 2010 and...