Assessing Materials Management Practices Effect on Firm’s Performance in Ghana Using Dominance Analysis: Evidence from a Listed Company

Abstract

The objective of this study is to empirically examine the effect of materials management on a firm’s performance by exploring employee views and utilizing a firm’s financial statement data within the Ghanaian context, focusing on Fan Milk Limited, a listed manufacturing firm in Ghana. A cross-sectional research design was espoused for the study, utilizing questionnaires completed by 240 respondents selected via simple random sampling. SPSS version 25.0 was utilized for data analysis, which included descriptive statistics, principal component analysis, exploratory factor analysis with varimax rotation, reliability/validity analysis, and multivariate regression aided with relative importance analysis via dominance analysis. The study found significant positive relationships between all eight materials management practices and a firm’s performance. Dominance analysis further revealed that materials requirement planning and control was the most important predictor of a firm’s performance, while ergonomics was the least important predictor of performance. Managerial recommendations established should be viewed critically while managing manufacturing firms.

The Challenges of Inventory Management in Medical Supply Chain

“…This idea makes it easier to distribute goods following market demand, provides less storage space, and lowers inventory investment costs. Distribution turns aid in tracking the business' JIT delivery process (Essel, 2021;Panigrahi et al, 2021). The most difficult activity to record is incoming inventory to the business.…”

“…It will be possible to anticipate operational efficiency if the inventory turnover within the company or sector is tracked. Indicators of business performance employed in inventory turnover include sales volume, profitability ratio, and asset tangibility in the commerce sector (Essel, 2021;Panigrahi et al, 2021). The distribution channel's sustained competitive strength (CS) determines a company's success.…”

“…DT focuses on how the organization may effectively manage the network impact among its forward and backward systems. The business may gain competitive advantages depending on the ideal and distinctive distribution facilities and channels (Essel, 2021). Normally, when they have a variety of goods in their production system, businesses prefer to use a fully systematic DT approach.…”

“…The company can acquire competitive advantages if it has the ideal and special distribution channels and facilities. When their manufacturing system includes various products, businesses often follow a completely systematic DT approach (Essel, 2021). Manufacturing companies benefit from the profitable channel's advantages in the marketplace.…”

SMEs Corporate Governance Mechanisms and Business Performance: Evidence of an Emerging Economy

“…The standard/criteria for performance measurement depends on the researcher's interest and the justification basis (Akinlo, 2012). A careful scrutiny of extant literature shows that, researchers/scholars have measured BP using two main measures namely, financial (accounting/market-based performance measures [profitability, liquidity, efficiency, gearing and market values indicators] and non-financial measures [operational measures, quality measures, overall competitive position and customer satisfaction indicators] (Essel, 2021). This is done via either undertaking objective analysis of company's annual financial statements or by gathering subjective data/information from survey respondents based on their individual opinions on BP.…”