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Knowledge Management Framework for Medical Tourism
Transcript of Knowledge Management Framework for Medical Tourism
Significant & Contribution
Knowledge Management Framework for Medical Tourism
Supervisor: Dr NorZairah Ab. Rahim
Tourism is one of the 12 initiatives proposed under
the National Key Economic Areas (NKEA) that could
help the nation to achieve the status of a developed
economy by 2020.
Within tourism, the health sub- sector is singled out
as the most promising and lucrative area for the
development of the industry in the country.
MYR 540 million to the nation’s economy (Leonard, 2009).
Worldwide medical tourism market was about US$ 60 billion in 2006 and projected to climb to US$100 billion by 2012 (Evans, 2008)
Key medical tourism destinations: Brunei, Cuba, Colombia, Costa Rica, Hong Kong, Hungary, India, Israel, Jordan, Lithuania, Malaysia, Mexico, Philippines, Singapore,Thailand, and United Arab Emirates
Malaysia’s competitors: the ‘uniquely’ superior quality Singapore; the ‘amazing’ Thailand and the emerging ‘incredible’ India.
Malaysia needs to offer unique competitive advantages in the current globalization in healthcare services; and identify its unique selling point.
‘a process of attracting foreign patients to overseas countries which can offer hospital/medical services at fees considerably less than the patient’s home country and usually combining an element of post operative tourism (recovery) for the patient’. (Rowley, 2008)
Over the last decades, there has been an emphasis on value adding activities in organizations. In fact, this issue has made the intangible assets in organizations as a source of competitive advantage.
One of these main intangible assets is the knowledge management capabilities.
This process is occurring in Malaysia’s economy as based on the Vision 2020,
Malaysians enterprises are committed to make significant contribution in economic development of Malaysia through knowledge management.
Medical Tourism industry is one of the areas which is capable of conducting the KM, and specifically this thesis will address the issue of medical tourism.
According to Mr. Alhadi, the Assistant Secretary from Malaysia Healthcare Travel Council (MHTC), rival countries such as India, Thailand and Singapore have made a name for themselves in the health tourism industry. The council main focus is transforming Malaysia to an international reputation for excellence in the provision of healthcare. (Salleh, N. S. M., et al 2011) In competing with the rival countries, the main issue is how to achieve competitive advantage of the industry? The study of Impact of Information Technology on Medical Tourism by considering supply chain relationship should assist MHTC in identifying and creating additional competitive the advantage of the industry. This study aim to conduct this impact as a knowledge management perspective.
Salleh, N. S. M., et al (2011) argue that the Health Tourism Industry is a very competitive industry. Prominent countries such as Singapore, India and Thailand are rigorously promoting their health tourism industry. Since the nature of the industry is very competitive thus assessing the impact of IT on Medical Tourism value chain is very important for MHTC to identify the key players of the industry in order to upgrade its strategy and generate commitment from the proposed players (Za'faran Hassan, 2010). On the other hand, Supplier bargaining power is low thus it is crucial for every hospital to extensively promoting their services through rigorous promotional activities. MHTC must come out with a strategic plan to promote Malaysian hospitals and at the same time to brand Malaysia as a destination of choice (Salleh, N. S. M., et al 2011).
Jarvenpaa and Tanriverdi (2003) intend that: "knowledge creation is the key to the survival of the company and for the competitiveness of the value chain ". Despite highlighted the role of knowledge in supply chain, there is a lack of systematic understanding of what constitutes knowledge management capability of the supply chain and how to build capability for knowledge management in the supply chain (Gunasekaran and Ngai 2007).
The KM capability building supply chain that is difficult to imitate by other associations of the supply chain requires companies to the supply chain to have a relationship oriented operations supply chain vision, such as alignment of activities and objectives involved in the supply chain (Im and Rai 2008). But due to the mixture of interests and abilities of several companies in a supply chain, the exchange and combination of knowledge, can be difficult and politically challenging for the participating supply chain companies (Van de Ven 2005).
One of the difficulties in the management of knowledge in value chains can be attributed to the competing and sometimes conflicting, objectives of the industry players in the medical tourism. Establishing networks of knowledge-based firms may be heterogeneous in terms of industry, organizational structure and size. These differences lead to inconsistencies in the results that partnering firms expect from the supply chain.
For instance, a small transport company's primary focus is on operational excellence may be more willing to increase their knowledge of the interface and cannot be related to the accumulation of knowledge about the customer or medical knowledge. Therefore, it is necessary for medical tourism supply chain partners under MHTC to produce an effective infrastructure to support the organization and operation of the technology underlying the KM capability of the supply chain.
Health tourism is an emerging sector in many countries, where developing economies find an opportunity to grow by providing quality medical services at competitive prices. Malaysia as a leading country of tourism industry is also keen to develop its medical tourism in world class to gain from its advantages to the country's economy. In competing with the rival countries, the main issue is how to achieve competitive advantage of the industry? Therefore, it is crucial for Malaysian government to build up a sustainable competitive advantages and better performance for its medical tourism industry.
As medical tourism include supply chains with different nature, so that make difficulties to work together to enhance the level of sustainable competitive advantages. In addition, over the last decades, there has been an emphasis on value adding activities in organizations. This issue has made the intangible assets in organizations as a source of competitive advantage. One of these main intangible assets is the knowledge management capabilities. This study attempt to understand the role of IT infrastructure of supply chain in medical tourism to bring Malaysian health tourism supply chains together and facilitating the creation of the knowledge management capability of the supply chain.
- To understand the impact of knowledge management capability of medical tourism supply chain on its performance.
- To evaluate the effect of IT infrastructure on KM capability on medical tourism supply chains.
- To investigate (identify) the role of KM IT to effect on knowledge performance of the firm.
1) What does the KM capability of a Medical Tourism supply chain constitute and how does the KM capability of the medical tourism supply chain impact the supply chain's performance?
2) How does the IT infrastructure capability affect the knowledge management capability of the medical tourism supply chain?
3) What roles do KM ITs play in affecting the knowledge performance of firms?
The first contribution of this study is to develop a theoretical construct for knowledge management capability of medical tourism supply chains.
Improvement of our understanding of the relationship between IT capability and performance of supply chain is the next contribution of this study for the IS research.
The third theoretical contribution of the research is that the computational simulation study will lay a foundation for theory building in IT-enabled inter-organizational Knowledge Management.
Firstly, in the rapidly changing business environment of today, the shareholders of the supply chain and medical tourism cannot afford to operate as separate entities with little understanding of the business processes, technologies and customers subsumed the competitive environment.
Secondly, the use and development of knowledge resources enables supply chains for medical tourism to be more responsive to market needs.
Finally, the exploitation of IT capabilities provides supply chain of medical tourism to create a foundation for knowledge management initiatives. Understanding how IT supports the activities of knowledge in supply chains allow medical tourism professionals supply chain to effectively use and manage the portfolio of IT resources in companies.
When extended enterprises arise as a new form of governing among firms, even scarcer understanding is readily available in the literature on the value creation process of IT deployed to form firm linkages (Barua et al. 2004).
An important motivation for Medical Tourism industry to collaborate in various configurations of extended enterprises is to access complementary knowledge and capabilities from partnering firms. In fact, a number of research studies rooted in the resource based view of the firms (RBV) have identified the strategic value of knowledge on firm performance (e.g., Grant 1996).
This study argues that the better inter-organizational partnerships are at acquiring, sharing, and utilizing knowledge resources, the more benefits the partnering firms can get out of the relationship for MT. Studying supply chains as a particular form of inter-organizational relationship configurations, this research intends to shed light on the facilitating/inhibiting role of IT in a medical tourism supply chain partnership's knowledge management.
Because this research is interested in the supply chain performance implications of IT, it lends itself to the cumulative tradition in the IT business value research. As explained in the literature review, there have been three streams of research examining IT business value. This study draws on the RBV and conceptualizes IT as capabilities, rather than as specific technology features. Particularly, it focuses on the capabilities of the IT infrastructure deployed in the MT supply chain.
To study the impact of MT supply chain IT infrastructure capability on supply chain relationship performance, knowledge management is identified as an important capability of a supply chain that should channel the effects of IT on performance. This research is also a response to the research call that suggests IS research based on RBV should not only study how IT capabilities help mobilize firms' internal resources but also the external resources embedded in the relationships with suppliers, customers, and competitors (Melville et al. 2004).
Capabilities are defined as "the repeatable patterns of actions in the use of assets to create, produce, and/or offer products to a market"(Wade and Hulland 2004; p. 109). According to Wade and Hulland, capabilities can include skills such as software development expertise, and processes such as information system integration. This definition of capabilities also echoes the capability construct proposed in the capability maturity model (Paulk et al. 1993).
Hypothesis 1: A supply chain's knowledge management capability will positively impact the supply chain's performance.
Hypothesis 2: A supply chain's IT infrastructure capability will positively impact the supply chain's knowledge management capability.
Hypothesis 3: A supply chain's IT infrastructure capability will positively impact the supply chain's relational capability.
Hypothesis 4 A supply chain's relational capability will positively impact the supply chain's knowledge management capability.
Hypothesis 5a: Dependence will moderate the relationship between the supply chain's IT infrastructure capability and the supply chain's knowledge management capability. The relationship between IT infrastructure capability and knowledge management capability will be the strongest when dependence between firms is both high and symmetric.
Hypothesis 5b: Dependence will moderate the relationship between the supply chain's relational capability and the supply chain's knowledge management capability. The relationship between relational capability and knowledge management capability will be the strongest when dependence between firms is both high and symmetric.