Communications of the IIMA


Facing the competitive pressure from new hospitals and new regulations from the Bureau of National Health Insurance, hospital managers in Taiwan are concentrating on reducing the hospital operation costs and improving the healthcare quality. Practitioners and academic researchers agree that reducing the pharmacy cost is one of the best solutions to sustain competitive advantage. As electronic commerce becomes popular in many industry sectors, e- procurement is growing rapidly in the healthcare industry. The purpose of this paper is to investigate the managers' perceptions of benefits of using electronic procurement system. After surveying 152 hospitals in Taiwan, we find that hospital size and adoption status have significant influence on many perceived benefits. Managers in large hospitals show stronger confidence in the perceived benefits of using e-procurement than their counterparts of small hospitals.