The objectives
of this study were to examine effects of B2B e-commerce on the material management by comparing the performance of B2B and non-B2B hospitals, and surveying the extent of the objective of B2B implementation was achieved and success and failure factors of the implementation. Managerial data from six hospitals, three B2B and three non-B2B, and survey data from 107 employees involved in the material management at the study hospitals were analyzed. The number of employees at the department of purchasing, time spent for placing order, cycle time from order to delivery were better at the B2B hospitals, and employees' satisfaction with the material management system was significantly higher in the B2B hospitals than in the non-B2B hospitals as well. However, intended effects of B2B e-commerce in wider areas of the material management such as inventory management and sharing of business information were not substantiated in this study. The study results indicated that B2B ecommerce in the study hospitals improved work efficiency and effectiveness in the area of procurement, and implied needs for an ERP-type system and process reengineering with the implementation of B2B e-commerce to obtain wider ranges of effects in the material management. Also the study results implied a need for communication with employees during the course of implementation for the system success.