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International Journal of Productivity and Performance Management
ISSN : 1741-0401
Article publication date: 29 March 2024
Effective inventory management is crucial for SMEs due to limited resources and higher risks like cash flow, storage space, and stockouts. Hence, the aim is to explore how technology and know-how can be integrated with inventory practices and impact operational performance.
Design/methodology/approach
The basis of the analysis was collecting papers from a wide range of databases, which included Scopus, Web of Science, and Google Scholar. In the first phase of the process, a search string with as many as nine related keywords was used to obtain 175 papers. It further filtered them based on their titles and abstracts to retain 95 papers that were included for thorough analysis.
The study introduced innovative methods of measuring inventory practices by exploring the impact of know-how. It is the first of its kind to identify and demonstrate how technical, technological, and behavioral know-how can influence inventory management practices and ultimately impact the performance of emerging SMEs. This study stands out for its comprehensive approach, which covers traditional and modern inventory management technologies in a single study.
Research limitations/implications
The study provides valuable insights into the interplay between technical, technological, and behavioral know-how in inventory management practices and their effects on the performance of emerging SMEs in Industry 5.0 in the light of RBV theory.
Originality/value
The RBV theory and the Industry 5.0 paradigm are used in this study to explore how developing SMEs' inventory management practices influence their performance. This study investigates the effects of traditional and modern inventory management systems on business performance. Incorporating RBV theory with the Industry 5.0 framework investigates firm-specific resources and technological advances in the current industrial revolution. This unique technique advances the literature on inventory management and has industry implications.
- Inventory management
- Domain knowledge
- Operational Performance
- Cost efficiencies
Panigrahi, R.R. , Shrivastava, A.K. and Nudurupati, S.S. (2024), "Impact of inventory management on SME performance: a systematic review", International Journal of Productivity and Performance Management , Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-08-2023-0428
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Impact of inventory management practices on the operational performances of SMEs: review and future research directions
- ORIGINAL ARTICLE
- Published: 02 January 2024
- Volume 15 , pages 1934–1955, ( 2024 )
Cite this article
- Rashmi Ranjan Panigrahi 1 ,
- Avinash K. Shrivastava ORCID: orcid.org/0000-0001-7794-7129 2 &
- P. K. Kapur 3
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The aim of this research is to examine the connection between inventory management practices (IMP) and their impact on the operational performance (OP) of SMEs. This investigation is conducted through a systematic literature review, with a specific focus on the perspective of supply chain and Industry 5.0 technology. This study uses bibliometric analysis and Scopus to extract and process relevant articles from 2000 to 2023, employing advanced techniques like biblioshiny and VOS-viewer to identify influential elements. This review revealed valuable insights like five clusters, seven thematic areas, and four emerging research contents. These findings offer a roadmap for future theoretical and empirical research in both SMEs and large manufacturing industries. Notably, SMEs’ operational performance is impacted by knowledge of high-tech technologies like IoT, big data, and ML, aiding in inventory cost reduction. The study’s innovation lies in integrating bibliometric analysis and systematic review, examining the crucial link between IM practices and SMEs’ operational performance, and identifying research gaps and emerging trends for further exploration and enhancement in operations research.
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Panigrahi, R.R., Shrivastava, A.K. & Kapur, P.K. Impact of inventory management practices on the operational performances of SMEs: review and future research directions. Int J Syst Assur Eng Manag 15 , 1934–1955 (2024). https://doi.org/10.1007/s13198-023-02216-4
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Received : 02 June 2023
Revised : 08 October 2023
Accepted : 22 November 2023
Published : 02 January 2024
Issue Date : May 2024
DOI : https://doi.org/10.1007/s13198-023-02216-4
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Effective inventory management provides a potential system nowadays to improve performance by matching inventory management practices and competitive advantages in the competitive world. Logistics networks, supply chain activities and inventory management practices are seen as a matter of survival and competitive advantage for an organisation. Studied conducted in the area of inventory management practices revealed that improper management may have been caused by various reasons such as the level of management commitment, the costs incurred and also the level of skills that the workers have. Inventory management across the supply chain is a big challenge for improving coordination among the value chain in the organizations. Controlling inventory is the need of the hour as it formulates the future of the business in terms of its success/failure as competition is intense, growing day-by-day. This research conceptualizes and develops the role of inventory management practices in foster...
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Effective inventory management provides a potential system nowadays to improve performance by matching inventory management practices and competitive advantages in the competitive world. Logistics networks, supply chain activities and inventory management practices are seen as a matter of survival and competitive advantage for an organisation.Studied conducted in the area of inventory management practices revealed that improper management may have been caused by various reasons such as the level of management commitment, the costs incurred and also the level of skills that the workers have.Inventory management across the supply chain is a big challenge for improving coordination among the value chain in the organizations.Controlling inventory is the need of the hour as it formulates the future of the business in terms of its success/failure as competition is intense, growing day-by-day.This research conceptualizes and develops the role of inventory management practices in fostering ...
JIBISM JOURNALS
In spite of the policy and institutional reforms undertaken in the Kenyan government health facilities and the support from non-governmental organizations, government health facilities in Kisumu County are still not able to effectively manage their inventory. The purpose of this study was to determine the effect of inventory management practices on supply chain performance of government health facilities in Kisumu County. The target population was the 12 government health facilities level 4 and 5 in Kisumu County since they operate under some defined level of semi-self-autonomy that allows them to manage their own inventory and supply chains; which formed the unit of analysis. The unit of observation was 84 comprising of Procurement officers, Stores clerks, Logistics officers and IT employees from those health facilities. The study was conducted in the year 2018. A census was conducted on all the 12 public health facilities. The study used both primary and secondary data where a semi-structured questionnaire was used to collect primary data while a secondary data sheet collected secondary data on procurement costs. The collected quantitative data was analysed using percentages , means, standard deviations and frequencies while inferential statistics used included regression and correlation analysis. Statistical analyses were carried out using SPSS version 21 and results presented in pie chart, table and graph. Regression analysis results revealed that lean inventory practices, inventory records accuracy and information technology had a significant effect on supply chain performance, while demand forecasting had an insignificant effect on supply chain performance. Based on the findings of the study, the study concluded that lean inventory practices, inventory records accuracy and information technology had the most significant effect on supply chain performance of government health facilities in Kisumu County.
Rushami Yusoff
The study is aimed to evaluate the correlation between inventory management practices, represented by inventory control towards inventory management performance.A cross-sectional, descriptive study was undertaken.A total of 143 public hospitals in Malaysia were approached for the study using an online questionnaires. Descriptive statistics were used for elaborating demographic characteristics while for inferential statistics, a Pearson Correlation Analysis was used to test the effects of inventory control on inventory management performance.Analysis were performed using SPSS 21.0.Out of 103 online questionnaires, 81 were returned with a response rate of 78.64%.Positive linear correlations between inventory control (r = 0.799, n=81, p < 0.01) towards inventory management performance were observed. Therefore, the results as portrayed showed that by increasing the inventory control, it will lead to increasing inventory management performance. Positive correlation between both variab...
Nurwin Fozia
The aim of this study was to investigate the factors influencing inventory management at the public sector from which the researcher settled on Kajiado District Hospital. The various factors investigated were broken into Procurement procedure, lead time, supplier selection and e-procurement. The objectives were to; determine how procurement procedures influence inventory management, to determine how e-procurement influences inventory management at Kajiado County Hospital. The study used thirty percent of the target population consisted of officers from various departments who are directly responsible in inventory management to ensure that the customer demands are effectively and efficiently met. Information was collected from forty five (45) of the targeted one hundred and fifty (150) respondents using structured and semi structured questionnaires. Data was quantitatively analyzed using SPSS version 22 which presented frequency tables, graphs and the necessary measures of variance for effective interpretation. The key findings in the research indicated several challenges in inventory management such as limitation of scope from which suppliers are selected, lack of transparent supplier appraisal process, lack of transparent tender awarding process and pre-qualification of supplier not made public. Delays was another challenge which was caused by the process of initiating a request of supplies to the supplier, non-availability of some pharmaceuticals from the Kenyan market or in the global market, legislation issues also come in to play as these products had to be authorized to be used in Kenyan market hence delays while awaiting approval and other logistical issues. Lack of e-procurement which could have been fast and reduce the delays. The study was of great importance to Kenyan government and donors it assisted in identifying areas of improvement in procurement process of such activities. To researchers the study formed basis for future research.
Industrial Engineering Letters
Dave E Marcial
Shiau Wei Chan
Effectiveness of inventory management is a vital part in the manufacturing organization to be more competitive. The previous studies have indicated that there are several factors influencing the effectiveness of inventory management in the organization but there is lack of researchers who carried out the research in the manufacturing small medium enterprise in Johor. Therefore, the purpose of this research is to identify the problem of inventory management faced by the manufacturing small medium enterprise and also to determine the factors that will influence the effectiveness of inventory management. In completing this research, 80 employees were selected randomly from the manufacturing small medium enterprise in Batu Pahat, Johor and they were requested to complete questionnaires. The result have shown that the problems of inventory management faced by manufacturing organization were underproduction, overproduction, stock out situation, delays in the delivery of raw materials and discrepancy of records. The factors, documentation/store records, planning, knowledge of employees/staff skill have shown to significantly influence the effectiveness of inventory management while the funds have shown slightly significant influence on the inventory management in manufacturing small medium enterprises. This quantitative study is important to the manufacturing organization in Malaysia because it provides the guidelines to the employers of manufacturing small medium enterprises in Batu Pahat, Johor.
Oirc Journals
Effective management of inventory systems is essential to performance of the many organizations in the world, but several organizations still experience losses as a result of under and over- stocking, ending of inventory and failing to satisfy neutral expectations. This can be attributed to failure to effectively manage inventory systems. This paper sought to ascertain the influence of inventory management systems on performance of pharmaceutical corporations in Kenya. Descriptive research design style was used in this study. One hundred and fifty workers designated from of the procurement department of fifty Pharmaceutical corporations in operation in Kenya were used in this study. Purposive sampling technique was accustomed choose half (75) of the staff of the pharmaceutical corporations working within the procurement department. SPSS version 21 was used analyse data gathered. Regression and correlation methods were used in establishing existence of relationships present between the management performance and systems and also to determine existence of hypothetical relationships between variables. The study established that implementing systems was identified as a significant problem to the pharmaceutical corporations because they lacked adequate technologies for supporting the initiative. The research concluded that the pharmaceutical corporations did not incorporate inventory control systems in a large extent despite its effectiveness and efficiency. As a result, the study recommends that the top leadership of the pharmaceutical corporations in operation in Kenya to encourage technological culture within their operations through coaching workers on modern technology currently being used in procurement. They ought to develop partnerships with ICT companies so as to reinforce competitive practises in their corporation.
Willy Muturi
A number of organizations collapse due to poor planning and corruption which drives firms to close down their operations. This can be stopped if proper inventory management is practiced and the technique thoroughly utilized for the benefit of the firm. Humanitarian Organizations ought to train their staff who engage in procurement since systems cannot work by themselves. Once the organization has qualified personnel who understand how to apply prudent inventory management techniques, the organization’s supply chain performance is achieved. Importance: Organizations use inventory control not only to ensure materials and products timely availability but also to ensure superior customer service and to achieve competitive advantage which in return promotes the procurement performance of an institution. This study sought to establish influence of inventory management practices on procurement performance of public health institutions taking a survey of public health institutions in Wester...
David Ackah (PhD) , Makafui R. Agboyi , Chelsea Mae Yumul
The inefficient inventory control measures by procurement officers and store keepers have always been a central Problem. Inexperience workers are likely to spend no effort in their job they sometimes absent themselves from work and also produce low quality work. On the other hand, workers who are experienced and have passion for work are likely to produce high quality work and also achieve their goals and objectives. Employers need to know their workers very well (their abilities and capabilities) and use different tactics to encourage them to work effectively. Once training and development is very important determinant in performance and productivity, this area of knowledge need further research, therefore the goal of this project is to reveal what it is that encourage all workers to perform at their best and achieve optimal business result at all times. The inherent problem I have identified is that many employers have attempted several different strategies to encourage their workers to work effectively, yet the strategies have not worked for everyone in the company. Primary and secondary source of data will constitute the bulk data for the project. The primary Source of data would be gathered through a well-structured open and close-ended questionnaire. Data from secondary source will be gathered primarily from Korle Bu Teaching Hospital records. Twenty five (25) people were selected at random from Korle Bu Teaching Hospital at all levels. Twelve (12) out of the twenty five (25) questionnaires were received. The data gathered will be both qualitative and quantitative. The data to be gathered would be analyzed with appropriate tools. Additionally, adequate literature will be reviewed to extract fact for use in the analysis.
HOSPITAL PERFORMANCE
david bahati
The study found out that there was a low level of inventory management employed at Panzi hospital.in which the respondents (0 3 0 5 x=2.26; SD=0.752) disagreed that the level of inventory management was there. This is a high mean and fairly distributed standard deviation from the mean in either side. This means that the health institutions in bukavu had moderately processes designed to help these panzi hospital to accomplish specific goals or objectives such as reduction of mortality rate and reduction of incident in Panzi hospital. It was further found out that there was a low level of performance among the surveyed health institutions in Bukavu. The respondents (0 3 0 5 x=3.86; SD=0.831) highly agreed that the good practices of inventory management can increase the performance at panzi hospital. This is high mean and fairly distributed standard deviation from the mean in either side. The two indicators (mortality rate and hospital incidents rate). The research concluded that there is a low level of inventory management and his negatively impacting on the performance of health institution in bukavu despite. There was a significance relationship between inventory management and health institution performance. Whereby good inventory management practices significantly influence positively on performance of health institution in bukavu. The null hypothesis was rejected and the alternative one was accepted that there is significance relationship between inventory management and health institution performance in bukavu.
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International Journal of Finance and Accounting
p-ISSN: 2168-4812 e-ISSN: 2168-4820
2018; 7(4): 83-96
doi:10.5923/j.ijfa.20180704.01
Impact of Inventory Management on Firm Performance: A Case Study of Listed Manufacturing Firms in Ghana
Suleman Bawa 1 , George Effah Asamoah 2 , Ernest Kissi 3
1 Student Graduate/CEO Bonkanzo Ltd, Leeds University Business School, University of Leeds, Leeds, United Kingdom
2 Senior Accountant, Finance Office, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
3 Lecturer, Department of Building Technology, College of Art and Built Environment, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
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Copyright © 2018 The Author(s). Published by Scientific & Academic Publishing.
Despite numerous research on inventory management on firm performance, and manufacturing firm’s contribution to the Ghanaian economy, its contextual impact still need much investigation because of lack of clarity and divergent findings. The study aims to investigate the impact of inventory management on firm performance of listed manufacturing firms in Ghana. The study used a cross sectional secondary data designed to test whether there is any relationship between inventory management and firm’s performance of listed manufacturing firms in Ghana. The sample of this study included 140 firm-year observations from 14 listed manufacturing firms in Ghana Stock Exchange (GSE) over a 10-year period, from 2007 to 2016. Measures of firm performance which were profitability and operating cash flows were examined. Regression equations stated in the form of return on assets and operating cash flow was used in analysing firm performance data. Pearson correlation and multiple regression analysis was also used as proxies in relatedness to effective inventory management. The empirical results provided evidence that the main variable, inventory management have no effect on firm’s performance and is insignificantly related to firm performance of manufacturing firms in Ghana.
Keywords: Ghana Stock Exchange, Firm performance, Manufacturing firms, Inventory management, Profitability, Operating cash flow
Cite this paper: Suleman Bawa, George Effah Asamoah, Ernest Kissi, Impact of Inventory Management on Firm Performance: A Case Study of Listed Manufacturing Firms in Ghana, International Journal of Finance and Accounting , Vol. 7 No. 4, 2018, pp. 83-96. doi: 10.5923/j.ijfa.20180704.01.
Article Outline
1. introduction, 2. previous studies, 3. theoretical literature review.
| EOQ Model ( ) |
4. Empirical Literature Review
| Conceptual Framework (Source: Adapted from Mwangi (2016)) |
5. Methodology
6. data analysis and discussion.
|
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The findings of this research indicate the presence of an intermediate measure of competitive advantage between inventory management practices and organizational performance. The finding is consistent with other similar studies (Sila, Ebrahimpour, and Birkholz, 2006, Fawcett et al., Citation 2006 ).
This research reviews inventory management concepts and implementations in the face of increasingly demanding human need. Demand is a critical variable in the inventory control system, and its ...
The aim of this research is to examine the connection between inventory management practices (IMP) and their impact on the operational performance (OP) of SMEs. This investigation is conducted through a systematic literature review, with a specific focus on the perspective of supply chain and Industry 5.0 technology. This study uses bibliometric analysis and Scopus to extract and process ...
Then, methods for optimising inventory management are recommended to attain the desired inventory performance objectives. Hence, the objective of the research is defined as follows: Improve inventory efficiency by adjusting the case company's current inventory management practices. The research objective provides direction for the study.
The Effort of New Technology. The frequency distribution table 4 shown below illustrates that 16% of the inventory management. optimization, while 37% had a strong impact, and 31% had a moderate ...
PDF | On Mar 1, 2021, Cinthya Vanessa Munoz Macas and others published Inventory management for retail companies: A literature review and current trends | Find, read and cite all the research you ...
The first step in the search process was to use the terms "inventory management optimization" and "mathematical modeling" in the title, abstract, and keywords. The initial search yielded 71 items. Second, we analyzed the titles and abstracts of the selected publications, which resulted in the elimination of 20 articles.
Findings. The study introduced innovative methods of measuring inventory practices by exploring the impact of know-how. It is the first of its kind to identify and demonstrate how technical, technological, and behavioral know-how can influence inventory management practices and ultimately impact the performance of emerging SMEs.
Naidoo and Wu (2011) researched 570 inventory control experts from New Zealand, Australia, the United States, and the United Kingdom and established that the designated staff could professionally plan and control the inventory effectively if knowledge had been imparted to them. Though the knowledgeable labor force is a preference of every business, and implausible unskilled and non ...
tifying research gaps and emerging trends for further explo-ration and enhancement in operations research. Keywords IM practice · Steel manufacturing industry · SMEs · Systematic review 1 Introduction This article provides a comprehensive review of the impact of inventory management (IM) practices on the operational
research problems whose implementable solution would have a major bene-ficial impact on the practice of inventory management. FOR OVER half a century the literature (encompassing literally hundreds of books and journals) has included frequent writings on the potential and actual uses of operations research in inventory man-agement.
The study assessed the inventory management (IM) strategies that are used by SME's in the manufacturing sector of Harare, Zimbabwe. The study comprised of the population from Gleview complex, Siya So Mbare, Kuwadzana, Gazaland and Magaba industrial sites. Respondents were selected from the each of the companies which the researchers selected ...
Historically, research in modeling and performance evaluation had always involved two closely linked issues. In addition, we can clearly identify in practice a combination of performance assessment methods to certain modeling formalisms. ... Rajeev N. Inventory management practices in small and medium machine tool enterprises in India: what ...
Effectiveness of inventory management is a vital part in the manufacturing organization to be more competitive. The previous studies have indicated that there are several factors influencing the effectiveness of inventory management in the organization but there is lack of researchers who carried out the research in the manufacturing small medium enterprise in Johor.
The results of this research showed that to improve the availability of pharmaceutical products and avoid shortages, inventory control processes need to be streamlined toward customer needs and demands by implementing a proper technique for inventory level control practices and improving inventory management policy.
Controlling inventory is the need of the hour as it formulates the future of the business in terms of its success/failure as competition is intense, growing day-by-day. This research conceptualizes and develops the role of inventory management practices in fostering inventory management performance.
4. Empirical Literature Review Firm performances have received numerous attempt by scholars and researchers in the field of business but evidence-based literature on inventory management on firm performance in listed manufacturing firms in Ghana is rare. With diverse views of concentration of study and explanatory variables, this research is geared toward related literatures and their ...
OPERATIONS MANAGEMENT | RESEARCH ARTICLE The impact of inventory management practice on firms' competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia Daniel Atnafu1* and Assefa Balda1 Abstract: This study aimed to empirically examine the impact of inventory management practice on firms ...
2.5 Inventory Management Practices During COVID-19 Pandemic SMEs application of IT and digital technologies, especially in managing their inventory, is becoming more crucial in this pandemic.
Manufacturing inventory management is the practice of keeping enough stock on hand so production lines can fulfill orders. The process helps managers see stock levels at a glance and tracks raw materials, parts, work-in-progress and finished goods. Find out more about manufacturing inventory management.
This research study examined the relationship between inventory management and operational performance in a manufacturing environment. It set out to explore the different inventory management practices currently used, as well as determine the common challenges encountered on a daily basis. A literature review was conducted on the types of ...
1. To discuss the aim of inventory management and control and indicate the challenges of inventory management practices and control In Awash Wine share company 2. To identify the major strengths and weakness of inventory management practices and control system of the Awash Wine share company. 3.
Knowledge workers attend an astounding number of meetings, many of which aren't a good use of their time. According to recent research from Microsoft, inefficient meetings are the number one ...
Summary. While companies say they champion diversity, there are glaring disparities in diverse representation within managerial ranks. The authors examine the impact of various management ...
Essential risk management steps for today's dental practice may be proposed that closely align with the Agency for Healthcare Research and Quality (AHRQ) elements of a patient safety initiative. Citation 7 Whether a practice plans to offer a new patient service or reevaluate current treatments and procedures, follow a methodical risk ...
Collaborative sagebrush management practices -- specifically in Grand Teton National Park -- are the topic of the Thursday, June 27, Harlow Summer Seminar Series event at the renovated University of Wyoming-National Park Service (UW-NPS) Research Station. The facility is located at the AMK Ranch in Grand Teton National Park.
Assessing the Inventory Management Practices, A Case of Manufacturing Firms in Hawassa City, Ethiopia. August 2020 International Journal of Current Research 12(2):10388-10395
However, the efficacy data of these novel agents do not compare with those of highly effective targeted therapies (eg, osimertinib). Herein, we provide an updated overview of recent findings and upcoming challenges regarding both molecular detection and therapeutic management of patients with advanced NSCLC with EGFR Ex20ins (Figure). 7. Figure.
The population of Addis Ababa is growing at rapid pace and currently reaches about 5 million. Food shortage, unemployment of youths and women, and increasing prices of major food items are critical constraints. In spite of the efforts to overcome the limitations, information is lacking on urban crop production and natural resource development and management practices to take informed decisions ...