Key Adoption Challenges and Issues of B2B E-Commerce in the Healthcare Sector

Key Adoption Challenges and Issues of B2B E-Commerce in the Healthcare Sector

Chad Lin (Curtin University of Technology, Australia), Hao-Chiang Koong Lin (National University of Tainan, Taiwan), Geoffrey Jalleh (Curtin University of Technology, Australia) and Yu-An Huang (National Chi Nan University, Taiwan)
DOI: 10.4018/978-1-60960-042-6.ch011
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Abstract

Although B2B e-commerce provides healthcare organizations a wealth of new opportunities and ways of doing business, it also presents them with a series of challenges. B2B e-commerce adoption remain poorly understood and it is also a relatively under-researched area. Therefore, case studies were conducted to investigate the challenges and issues in adopting and utilizing B2B e-commerce systems in the healthcare sector. The major aims of this study are to: (a) identify and examine main B2B e-commerce adoption challenges and issues for healthcare organizations; and (b) develop a B2B e-commerce adoption challenges and issues table to assist healthcare organizations in identifying and managing them.
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Benefits Of B2b E-Commerce In Healthcare

The adoption of B2B e-commerce by healthcare organizations includes online activities such as biotechnology online transactions between, for example, hospitals and their suppliers and the sales of medical products and services via e-marketplace (Parente, 2000; Standing et al., 2008). It enables healthcare organizations to minimize their procurement costs and assists their suppliers to sell via an efficient marketing channel (Parente, 2000). B2B e-commerce allows health organizations’ business partners to access their internal business systems via the Internet. Some of the major benefits of B2B e-commerce specifically to healthcare organizations are: (1) it gives medical suppliers access to huge number of new customers and suppliers (Suomi et al., 2001); (2) it can reduce healthcare organizations’ costs such as procurement costs, inventory holding, and search costs (Bhakoo and Sohal, 2008); (3) it allows healthcare organizations to compare the partners effectively and easily the change traditionally rigid procurement contracts (Suomi et al., 2001); (4) it provides an efficient and effective channel for medical information exchange and sharing among healthcare organizations (Suomi et al., 2001); (5) it helps to provide accurate and timely business information and streamline orders and payments (CR Group, 2002); and (6) it offers an effective channel and platform for suppliers and customers to trade and communicate (Suomi et al., 2001).

Key Terms in this Chapter

Information technology (IT): Any computer-based tool that users use to work with information and support the information needs of an organization.

User Involvement: User participation. It is an act or a process for users to actively participate and/or or share their expertise, thoughts, and experience during a system development life cycle or project.

Benefits: The tangible and intangible returns or payback expected to be obtained from a systems investment or implementation.

Supply Chain Management (SCM): It involves coordinating and integrating the network of retailers, wholesalers, distributors, transporters, storage facilities, and suppliers that involve in the sale, delivery and production of a particular product or service, both within and among different organizations. It covers all movement and storage of raw materials, work-in-process inventory, and finished goods within and across different organizations.

Healthcare Industry: The health profession industry which offers services in relation to the preservation of health by preventing or treating illness.

E-Commerce: A business model that is conducted over the Internet in which clients are able to participate in all phases of a purchase decision. Electronic commerce can be between two businesses transmitting funds, goods, services or between a business and a customer.

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