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Do mid‐level providers enhance hospital cost per discharge or triple aim performance efficiency? An exploratory analysis

Journal of Operations Management 2024 open access
Abstract Hospital administrators are shifting care delivery models toward an approach that uses more caregivers in the form of mid‐level providers (MLPs), such as nurse practitioners, physician assistants, and clinical nurse specialists. To date, however, healthcare operations management (OM) literature remains ambiguous about longitudinal empirical associations between mid‐level providers and hospital costs, quality, and other performance measures. We analyze how the extent of MLP employment used by a hospital is associated with hospital operational outcomes, as reflected by hospital cost per discharge and Triple Aim Performance (TAP) efficiency metrics. Our findings indicate percent MLP usage is positively associated with efficiency metrics for hospital clinical quality, technical efficiency, and patient experience, but not associated with hospital costs. We also find percent MLP usage is associated with the likelihood that hospitals excel on all TAP metrics simultaneously. Post‐hoc exploratory analyses suggest the associations exhibit differential outcomes across hospital efficiency quantiles, while sub‐sample analyses motivate boundary conditions for some hypothesized MLP associations. We contribute to healthcare OM research by providing one of the first panel data analyses of MLPs, improving insights relative to extant work. By giving key stakeholders useful findings about outcomes associated with hospital staffing trends, our managerial contribution helps hospital administrators understand empirical consequences of the increasing use of MLPs.

RETRACTED: An investigation of corporate social responsibility conformity: The roles of network prominence and supply chain partners

Journal of Operations Management 2024 70(4), 600-629 open access
Abstract Numerous studies on corporate social responsibility (CSR) indicate that firms adopt CSR practices for various reasons related to their supply chain. However, the necessity to conform to a firm's own industry CSR norm is overlooked. Conforming to one's industry CSR norm—a herding behavior known as CSR conformity —ensures firm in‐group legitimacy and preserves internal resources for core business activities. On the other hand, deviating from industry norms sets a firm apart from its peers, making the firm more appealing to supply chain partners. Motivated by this dilemma, this study draws on middle‐status conformity theory and explores how a firm's network prominence determines its CSR conformity. Panel data analyses of 1650 firm‐year observations reveal an inverse U‐shaped relationship between firm network prominence and its CSR conformity, indicating that firms with a mid‐level network prominence engage in higher CSR conformity. However, the inverse U is flattened when a firm's supply chain partners (and their respective industries) share similar CSR standards, suggesting that a firm can only prioritize its own industry CSR norms if its supply chain partners share a compatible CSR standard. These findings highlight the importance of understanding CSR from an organizational conformity perspective, especially in the context of supply chain network.

Down the drain: The dynamic interplay of governance adjustments addressing setbacks in large public–private projects

Journal of Operations Management 2024 70(1), 80-106 open access
Abstract Large government projects involving public–private collaborations inherently suffer from setbacks such as delays, cost overruns, or failure to meet contracted performance. Such setbacks may effectively be addressed through adjustments to contractual and relational governance; yet to date, the dynamics of governance adjustments and their interplay in addressing setbacks is not well understood. This research presents a dynamic theory of how parties can effectively address project setbacks through adjustments to contractual and relational governance. The dynamic theory was generated using longitudinal case data from two large public–private projects in the Netherlands that faced comparable project setbacks but deployed opposing governance adjustments, leading to drastically different project outcomes (i.e., collapse vs. recovery). This theory was then elaborated through two more cases and evidence from the literature. A system dynamics simulation model was then built that reproduces the different governance adjustments and outcomes observed in the four projects and serves to extend theory building. The refined theory not only shows under what conditions adjustments to contractual or relational governance are most effective, but also that governance adjustment interplay may trigger unintended side effects. As such, the theory explains why the careful balancing of governance adjustments is critical to project outcomes.

Carbon neutrality: Operations management research opportunities

Journal of Operations Management 2024 open access
Abstract Climate change, primarily driven by greenhouse gas emissions (GHGs), is a pressing environmental and societal concern. Carbon neutrality, or net zero, involves reducing carbon dioxide emissions, the most common GHG, and then balancing residual emissions through removing or offsetting. Particularly difficult challenges have emerged for firms seeking to reduce emissions from Scope 1 (internal operations) and Scope 3 (supply chain). Incremental changes are very unlikely to meet the objective of carbon neutrality. Synthesizing a framework that draws together both the means of achieving carbon neutrality and the scope of change helps to clarify opportunities for research by operations management scholars. Companies must assess and apply promising technologies, form new strategic relationships, and adopt novel practices while taking into account costs, risks, implications for stakeholders, and, most importantly, business sustainability. Research on carbon neutrality is encouraged to move beyond isolated discussions focused on specific tactics and embrace a more, though not fully, holistic examination. Research opportunities abound in both theoretical and empirical domains, such as exploring tradeoffs between different tactics, balancing portfolios, and investigating the strategic deployment of initiatives over time. As a research community, we are critically positioned to develop integrative insights at multiple levels, from individual processes to horizontal and vertical partnerships and ultimately to large‐scale systemic realignment and change.

Locking in overseas buyers amid geopolitical conflicts

Journal of Operations Management 2024 70(5), 756-792 open access
Abstract Geopolitical conflicts, particularly economic ones, introduce significant uncertainties into the global supply chain. The impact of these conflicts on cross‐border buyer–supplier transactions remains underexplored, as does the capability of global suppliers to mitigate such risks by locking in their foreign buyers. Employing a combined perspective of resource dependence theory and transaction cost economics, we examine a natural experiment to investigate the effects of the 2018 U.S.–China trade war on the transactional relationships between Chinese suppliers and their U.S. buyers. Our study reveals that the trade war generally adversely affected these buyer–supplier transactional relationships, leading to a negative abnormal transaction value in the affected dyads, which amounted to 18.42% of their pre‐event level. However, we find that this adverse impact can be attenuated when Chinese suppliers demonstrate superior innovation capabilities, higher corporate social responsibility performance, or fewer local political ties. These findings yield insights for international suppliers and buyers on strategies to maintain buyer–supplier transactions and minimize the detrimental effects on global supply chain relationships during geopolitical conflicts.

Vendor selection in the wake of data breaches: A longitudinal study

Journal of Operations Management 2024
Abstract With the increasing digitization and networking of medical data and personal health information, information security has become a critical factor in vendor selection. However, limited understanding exists regarding how information security influences vendor selection. Drawing from the attention‐based view (ABV), this study examines the potential impact of data breaches on hospitals' selection of electronic medical record system (EMRS) vendors. To test our hypotheses, we compile a unique dataset spanning 12 years of observations from US hospitals. Utilizing a coarsened exact matching (CEM) technique combined with a difference‐in‐differences (DiD) approach, our study shows that hospitals tend to replace their EMRS vendors after experiencing data breaches. Moreover, breached hospitals tend to prioritize information security in such a vendor replacement process by switching to star vendors and migrating towards a single‐sourcing configuration. Further post‐hoc analyses reveal that these impacts of data breaches are mitigated as the relationship between breached hospitals and vendors matures or when hospitals belong to large healthcare systems. Additionally, we find that the effects of data breaches are contingent on the scale of the breach and are short‐term in nature. This research underscores the significance of information security as a crucial consideration in vendor selection for both academia and practitioners.

Supply Base attributes and diversion risk in a supply chain for hazardous pharmaceutical products

Journal of Operations Management 2024 open access
Abstract We develop a novel construct, diversion risk, defined as the potential for post‐retail diversion that results from increased sales of hazardous goods. We examine diversion risk in the context of prescription opioid sales in the United States. We ask how supply base attributes and nonprofit ownership influence the creation of opioid diversion risk. We use performance‐outcome expectancy theory to hypothesize that pharmacies organize supply bases to help them avoid negative evaluations and that nonprofit ownership alters expectancy concerning legal but questionable behavior. We develop and test multilevel hypotheses explaining how supply base complexity, chain size, and nonprofit ownership influence diversion risk. Our analysis of DEA data from 2006 to 2019 finds that after accounting for other attributes, supply base complexity is positively related to diversion risk, within and between firms. Retail chain size is negatively related to diversion risk in the within‐firm model, but positively in the between firm model. Testing our nonprofit hypothesis reveals that nonprofit pharmacies also use size and supply base complexity to manage diversion risk. This research sheds light on the dynamics of diversion risk in pharmaceutical supply chains. It has practical implications for the industry, potentially informing future policy and practice addressing this critical issue.