Inventory management, managerial competence and financial performance of small businesses

Orobia, Laura; Nakibuuka, Joweria; Bananuka, Juma; Akisimire, Richard

doi:10.1108/jaee-07-2019-0147

Cited by 54 publications

(82 citation statements)

References 70 publications

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“…The impact is direct for managerial competences, and indirect for specialized competences and personal and social competences. The present findings correspond to the results emerging from the review of literature (Altinay and Wang, 2011;Orobia et al, 2020;Nakhata, 2007). The relationship between the competences and performance is logical and natural: the higher the management's competences the better performance is to be expected (Filipowicz, 2019).…”

Section: Discussionsupporting

confidence: 92%

The Impact of Managers' Competences upon the Performance of Small Enterprises

Mieszajkina¹

2021

ERSJ

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Purpose:The objective of the article is to present the results of the study pertaining to the impact of competences of small enterprises' managers upon the enterprises' performance. Design/Methodology/Approach: The review of available literature as well as empirical studies were performed in order to arrive at the objective. This enabled an in-depth examination of the subject matter. The review of literature enabled the methodology of the study to be formed. The survey approach with the use of a questionnaire was applied in data collection. The impact of the managers' competences upon the performance of the enterprises was examined by means of structural equation modeling. Findings:The study expands knowledge in the field of small enterprises management. The article revealed that the performance of such enterprises is affected by the competences of the management. Based upon the review of literature, three types of competences were distinguished. A list of competences, which takes the specific character of small businesses into consideration, was developed for each of the types. The empirical study revealed that managerial competences directly affect the performance of the enterprises. Such competences are reinforced by specialized competences as well as personal and social competences. Practical Implications:The results of the study may offer valuable information for small enterprise owners. They may prove helpful in developing competence profiles and strategies regarding the improvement of managers' competences. They may also be of use to consultants offering trainings and advisory services for small businesses. The results of the study are compelling and encourage further research. Originality/Value: The subject matter seems vital because insufficient competence level of the management is believed to be one of the weaknesses of small enterprises. Usually, such businesses are analyzed in relation to large enterprises or the entire MSME sector. The current study pertains exclusively to small enterprises, which have the lowest development capacity in the sector. Studies prove that the enhancement of the management's competences may contribute to the improvement of business performance.

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Section: Discussionsupporting

confidence: 92%

The Impact of Managers' Competences upon the Performance of Small Enterprises

Mieszajkina¹

2021

ERSJ

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“…Lastly, respondents were expressly assured that there are no right or wrong answers as long as the responses are honest. This aimed at reducing the respondent's apprehension over their responses hence reducing the possibility of editing their answers to give what they perceive as the best answers (Orobia et al, 2020).…”

Section: Control For Common Methods Biasmentioning

confidence: 99%

“…Financial performance reflects a firm's ability to operate efficiently, profitably, grow, survive, and react to environmental opportunities and threats (Kamukama et al, 2017). In Africa, several businesses have collapsed, with poor financial performance cited as one of the leading causes of the collapse (Orobia et al, 2020). Specifically, in Uganda, businesses' poor financial performance is evident where 30% of companies do not survive beyond three years (Afunadula, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…As coined by Barney in 1991, the RBV suggests that a firm's superior performance is a function of its resources and its capability to convert these resources to provide sustainable competitive advantage (Barney, 1991). These resources include all assets, capabilities, organisational processes, firm attributes, information, knowledge, etc., that a firm uses to devise and implement its plans to improve its efficiency and effectiveness (Orobia et al, 2020). Barney (1991) categorises resources into tangible resources (physical resources) and intangible resources (nonphysical resources).…”

Section: Introductionmentioning

confidence: 99%

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Working Capital Management and Financial Performance of Private Hospitals in Western Uganda: The Mediating Effect of Competitive Advantage

Cranimar¹,

John²

2021

IJBS

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Purpose: This study aimed at examining the mediating effect of competitive advantage in the relationship between working capital management (WCM) and the financial performance of private hospitals in Western Uganda. Methodology: The study adopted a positivist approach and a cross-sectional research design to collect data from 32 Private hospitals in Western Uganda. A closed-ended questionnaire was used to collect data from hospital administrators, accountants, storekeepers and pharmacists in private hospitals who were purposively selected. Hierarchical multiple regression was used for data analysis. Findings: Results indicate that competitive advantage is a significant mediator in the relationship between working capital management and private hospitals' financial performance in Western Uganda. Unique Contribution to practice and policy: The study has deep-rooted the urgent need for private hospitals to adopt more innovative strategies to attain a competitive edge and hence superior financial performance. However, the study was positivistic, thus subject to methods bias that could have affected the results' validity. Keywords: Working Capital Management, Competitive advantage, financial performance

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“…Results revealed that business strategies mediate the consequence of material capability and performance of the firm. Orobia et al (2020) investigated the relationship between MM, managerial competence, and performance of 304 SMEs in Uganda, testing whether MM mediates the relationship between managerial competence and financial performance.…”

Section: Empirical Literaturementioning

confidence: 99%

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

Essel

2021

Journal of Operations and Strategic Planning

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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.

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Inventory management, managerial competence and financial performance of small businesses

Cited by 54 publications

References 70 publications

The Impact of Managers' Competences upon the Performance of Small Enterprises

The Impact of Managers' Competences upon the Performance of Small Enterprises

Working Capital Management and Financial Performance of Private Hospitals in Western Uganda: The Mediating Effect of Competitive Advantage

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

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