Open AccessWorking Capital Management and Financial Performance of Private Hospitals in Western Uganda: The Mediating Effect of Competitive Advantage
Author(s) -
Muhindo Cranimar,
Rwakihembo John
Publication year - 2021
Publication title -
international journal of business strategies
Language(s) - English
Resource type - Journals
ISSN - 2519-0857
DOI - 10.47672/ijbs.702
Subject(s) - competitive advantage , working capital , business , financial management , capital (architecture) , finance , accounting , marketing , archaeology , history
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