Abstract: This study examined the effect of inventory management on firm performance and controlled for key covariate, namely company size, capital size, and industry. A quantitative research technique and a cross-sectional survey were employed to gather data for testing hypotheses. Data was collected on 165 Accra-based firms that met the selection criteria. A self-reported questionnaire was used to collect data. Pearson’s correlation test and Confirmatory Factor Analysis (CFA) were used for analysis of the data. Results revealed that, inventory management had a positive effect on operational and marketing performance but not on financial performance. Company and capital size have a positive effect on inventory management. It is concluded that improving inventory management can cause an increase in firm performance in terms of operational and marketing performance, especially in the light of a marginal increase of resources.
Keywords: Inventory management, firm performance, company size, capital size, industry affiliation.
Title: THE EFFECT OF INVENTORY MANAGEMENT ON FIRM PERFORMANCE: CONTROLLING FOR KEY CO-FOUNDING VARIABLES
Author: Ofori-Nyarko Ernest, Boison David King, Asiedu Esther, Afrifah Michelle
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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