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Managing the exploration-exploitation paradox in healthcare: Three complementary paths to leverage on the digital transformation

Luca Gastaldi (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Milano, Italy)
Francesco Paolo Appio (Research Center, Léonard de Vinci Pôle Universitaire, Paris La Défense, France)
Mariano Corso (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Milano, Italy)
Andrea Pistorio (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Milano, Italy)

Business Process Management Journal

ISSN: 1463-7154

Article publication date: 13 July 2018

Issue publication date: 14 August 2018

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Abstract

Purpose

The purpose of this paper is to understand how digital technologies can help healthcare organisations and improve the exploration-exploitation paradox over time. The authors explore inputs, processes and outcomes of implementing digital transformation programs and advance four testable propositions.

Design/methodology/approach

The authors conducted multiple case studies with embedded units of analysis: digital transformation processes; hospitals; and regional healthcare systems. Primary sources come from 107 semi-structured interviews with key informants within 14 Italian hospitals between 2009 through 2011.

Findings

Three complementary paths emerge as fundamental to balance exploratory and exploitatory efforts in healthcare: assets digitalisation within hospitals; digitally based process integration; and disruptive decision-making through analytics. Intra- and inter-path characteristics are discussed to show how digital transformation can both move hospital within the exploration-exploitation space.

Research limitations/implications

By its very nature, this study is exploratory. Notwithstanding the number of cases and interviews, its generalisability is limited.

Practical implications

Digital transformation programs are fundamental to resolve the tensions raised by the exploration-exploitation paradox. Their implementation leads to better performance (cost reductions, quality improvements). A framework is provided for practitioners to make better decisions.

Originality/value

This study sheds new light on how digital technologies are actually adopted and adapted in healthcare contexts. It does it by entailing a longitudinal perspective.

Keywords

Citation

Gastaldi, L., Appio, F.P., Corso, M. and Pistorio, A. (2018), "Managing the exploration-exploitation paradox in healthcare: Three complementary paths to leverage on the digital transformation", Business Process Management Journal, Vol. 24 No. 5, pp. 1200-1234. https://doi.org/10.1108/BPMJ-04-2017-0092

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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