The Impact of Blockchain Technology on Hospital Supply Chains: A Case of Saudi Arabia

Rising demand in the healthcare sector has made it increasingly critical to enhance hospital system performance by ensuring high levels of security, privacy and quality. Implementing innovative technologies is one way to improve the quality of healthcare services. Blockchain technology is one such technology that offers several benefits, including immutability, security, and transparency, which can help address key challenges in the healthcare supply chain. The aim of this study was to explore the effect of blockchain technology use on the performance of hospital supply chains in Saudi Arabia. Task–technology fit (TTF) theory was employed to construct a comprehensive conceptual framework for blockchain technology use and to assess its impact on hospital performance. A quantitative methodology was adopted to explore the relationships among key constructs and to confirm the validity of the proposed research model. Data were collected through surveys administered to 311 managers and information technology professionals employed in hospitals across Saudi Arabia. Structural equation modelling (SEM) was used to assess the conceptual framework and test the proposed hypotheses. In addition, the fuzzy-set qualitative comparative analysis (fsQCA) approach was employed to identify various configurations of blockchain utilisation. By uncovering alternative strategies for enhancing blockchain adoption in hospital supply chain systems, the fsQCA analysis complemented the findings derived from SEM. From the SEM analysis, the hypothesis testing findings revealed that task characteristics, blockchain characteristics, individual characteristics and blockchain were significantly and positively associated with TTF in enhancing hospital performance. Further, TTF was found to have a positive influence on both blockchain utilisation and hospital performance. The results from the fsQCA revealed that task characteristics, blockchain characteristics, individual characteristics and TTF are necessary conditions for enhancing hospital performance. Moreover, the fsQCA results for high outcomes indicated that a combination of task characteristics, blockchain characteristics, task–technology fit characteristics and blockchain utilisation contribute to enhanced hospital performance. Moreover, a configuration characterised by the absence of task and individual characteristics, combined with the presence of TTF and blockchain utilisation, also resulted in high hospital performance. A comparison of the SEM and fsQCA results regarding the impact of blockchain utilisation on hospital performance confirms that high hospital performance in Saudi Arabia depends on the configurational effects of multiple variables. This study has significant theoretical, methodological and practical contributions in developing a model for the implementation of blockchain technology in hospital supply chains. The study’s contribution to the theory includes developing a robust framework to investigate the effect of blockchain technology on hospital supply chain systems and analysing its impact on hospital performance. Methodologically, this study is the first of its kind to use fsQCA combined with SEM to examine the impact of blockchain utilisation on hospital performance. From a practical perspective, the study findings are wide-ranging and diverse, given that the sample includes both public and private hospitals in Saudi Arabia. In addition, the study can guide managers to develop a step-by-step procedure for implementing blockchain technology to improve hospital supply chain performance. Moreover, this research findings can help managers and decision- makers to establish best practices for improving healthcare performance and developing a system for improving hospital performance through blockchain technology implementation to achieve a high level of privacy, safety and transparency in hospital systems. The model proposed in this study could be applied to developing countries similar to Saudi Arabia. Although this study has certain limitations, they offer valuable opportunities for further research. The data were collected exclusively from Saudi Arabia, and the findings may differ in countries whose hospital systems differ. Moreover, this study relied on cross-sectional data rather than longitudinal data, which may not adequately capture the evolution of blockchain technology. Future research could evaluate the applicability of the proposed model in other developing countries that have similar contexts to Saudi Arabia, such as those in the Gulf Cooperation Council. A longitudinal approach could provide deeper insights into the evolution of blockchain technology. In addition, it is recommended to examine other factors that may influence the adoption and integration of blockchain technology to enhance understanding of its broader implications. Keywords: blockchain technology, fuzzy-set qualitative comparative analysis, hospital supply chain, Saudi Arabia, task–technology fit theory<p></p>