The Impact of IT and Social Capital on Inter-firm Dynamic Capabilities: Understanding the Performance of Healthcare Delivery Network

Abstract

In response to the calls for research of dynamic supply chain development and IT business value, this study examined the impact of IT and social capital on interfirm dynamic capability. Healthcare delivery networks were chosen as the example to perform the research because of their distinct feature as a part of the supply chain of healthcare industry. There is a patient flow in the network compared with traditional supply chain because hospitals often need to work with various partners in order to deliver a healthcare service. This research proposes that IT with event driven architechture (EDA) and social capital are two factors improve the interfirm dynamic capabilities in healthcare delivery network which will lead to better operations and ultimately improves the healthcare service delivery performance. A research model was developed based on information processing view to investigate the relationship between IT, social capital, interfirm dynamic capabilities, and operational capabilities. Also, the quality and financial performance was examined as the outcome of developing dynamic healthcare delivery networks. The study employed primary data from survey and secondary data obtained from Center of Medicare and Medicaid. The empirical test was conducted using PLS, seemly unrelated regression, and cluster analysis. The finding of the empirical model illuminated the need for IT with EDA, better social capital with healthcare providers in order to develop a higher interfirm dynamic capabilities for healthcare delivery network which will improve the hospitals healthcare service quality and financial performance.