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Thesis/Dissertation
Date
2025-08
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Business Administration/Strategic Management
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https://doi.org/10.34944/afv8-z663
Abstract
Organizational inertia continues to pose significant barriers to innovation within healthcare procurement, critically influencing decisions related to both technical and non- technical products. This dissertation provides a comprehensive examination of how healthcare executives and procurement professionals perceive value, uncovering the nuanced interplay of cognitive biases, procedural complexities, emotional attachments, and organizational priorities. A comprehensive literature review frames the conceptual foundation of organizational inertia and value perception and enables a rigorous mixed-method approach of complementary qualitative and quantitative research. Study One features in-depth interviews with executive leaders and supply chain decision-makers on the persistence of outdated products. This leads to insights on organizational inertia, while introducing executive decision making. Study Two utilizes choice-based conjoint analysis within a Pareto Optimal framework to investigate how decision-makers prioritize competing values—such as quality, affordability, patient satisfaction, and employee satisfaction—in real-world procurement scenarios. The realistic procurement scenarios on a non-technical product, hospital gowns, and a technical product, Intravenous (IV) pumps reveal a consistent preference among decision-makers for solutions that integrate patient-centric features, affordability, and operational effectiveness. When tradeoffs are necessary, healthcare professionals choose patient satisfaction over employee satisfaction, and product quality over affordability. The analysis also identifies critical conditions under which decision makers reject products perceived as inadequate. This dissertation highlights the strategic role executives play in fostering an organizational culture that either encourages innovation or sustains inertia. Executive decisions significantly shape organizational receptivity to change, underscoring their influence on long-term growth and adaptability. For vendors seeking entry into healthcare markets, this research offers targeted, practical insights on creating and positioning products to align closely with healthcare leaders' priorities and values, thus ensuring smoother market penetration and fostering long lasting partnerships. By integrating principles from behavioral science and strategic decision-making literature with real world scenarios, this dissertation meaningfully expands the current discourse on healthcare procurement, and offers actionable, evidence-based strategies that are beneficial for healthcare executives, vendors, employees and patients.
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