Cooperation for a competitive position

The impact of hospital cooperation behavior on organizational performance

Vera Antonia Büchner, Vera Hinz, Jonas Schreyögg

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

BACKGROUND: Several public policy initiatives, particularly those involving managed care, aim to enhance cooperation between partners in the health care sector because it is expected that such cooperation will reduce costs and generate additional revenue. However, empirical evidence regarding the effects of cooperation on hospital performance is scarce, particularly with respect to creating a comprehensive measure of cooperation behavior.

PURPOSE: The aim of this study is to investigate the impact of hospital cooperation behavior on organizational performance. We differentiate between horizontal and vertical cooperation using two alternative measures-cooperation depth and cooperation breadth-and include the interaction effects between both cooperation directions.

METHODOLOGY: Data are derived from a survey of German hospitals and combined with objective performance information from annual financial statements. Generalized linear regression models are used.

FINDINGS: The study findings provide insight into the nature of hospitals' cooperation behavior. In particular, we show that there are negative synergies between horizontal administrative cooperation behavior and vertical cooperation behavior. Whereas the depth and breadth of horizontal administrative cooperation positively affect financial performance (when there is no vertical cooperation), vertical cooperation positively affects financial performance (when there is no horizontal administrative cooperation) only when cooperation is broad (rather than deep).

PRACTICAL IMPLICATIONS: Horizontal cooperation is generally more effective than vertical cooperation at improving financial performance. Hospital managers should consider the negative interaction effect when making decisions about whether to recommend a cooperative relationship in a horizontal or vertical direction. In addition, managers should be aware of the limited financial benefit of cooperation behavior.

OriginalsprogEngelsk
TidsskriftHealth Care Management Review
Vol/bind40
Udgave nummer3
Sider (fra-til)214-224
ISSN0361-6274
DOI
StatusUdgivet - 2015
Udgivet eksterntJa

Fingeraftryk

Linear Models
Health Care Sector
Public Policy
Organizational performance
Direction compound
Financial Statements
Surveys and Questionnaires
Financial performance
Interaction effects
Managers

Citer dette

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Cooperation for a competitive position : The impact of hospital cooperation behavior on organizational performance. / Büchner, Vera Antonia; Hinz, Vera; Schreyögg, Jonas.

I: Health Care Management Review, Bind 40, Nr. 3, 2015, s. 214-224.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - Cooperation for a competitive position

T2 - The impact of hospital cooperation behavior on organizational performance

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AU - Hinz, Vera

AU - Schreyögg, Jonas

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N2 - BACKGROUND: Several public policy initiatives, particularly those involving managed care, aim to enhance cooperation between partners in the health care sector because it is expected that such cooperation will reduce costs and generate additional revenue. However, empirical evidence regarding the effects of cooperation on hospital performance is scarce, particularly with respect to creating a comprehensive measure of cooperation behavior.PURPOSE: The aim of this study is to investigate the impact of hospital cooperation behavior on organizational performance. We differentiate between horizontal and vertical cooperation using two alternative measures-cooperation depth and cooperation breadth-and include the interaction effects between both cooperation directions.METHODOLOGY: Data are derived from a survey of German hospitals and combined with objective performance information from annual financial statements. Generalized linear regression models are used.FINDINGS: The study findings provide insight into the nature of hospitals' cooperation behavior. In particular, we show that there are negative synergies between horizontal administrative cooperation behavior and vertical cooperation behavior. Whereas the depth and breadth of horizontal administrative cooperation positively affect financial performance (when there is no vertical cooperation), vertical cooperation positively affects financial performance (when there is no horizontal administrative cooperation) only when cooperation is broad (rather than deep).PRACTICAL IMPLICATIONS: Horizontal cooperation is generally more effective than vertical cooperation at improving financial performance. Hospital managers should consider the negative interaction effect when making decisions about whether to recommend a cooperative relationship in a horizontal or vertical direction. In addition, managers should be aware of the limited financial benefit of cooperation behavior.

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