Open AccessInventory Management and Financial Performance of Private Hospitals: A Positivist Evidence from Western Uganda
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.712
Subject(s) - business , inventory management , positivism , financial management , performance appraisal , actuarial science , operations management , finance , accounting , economics , management , political science , law
Purpose: This study set out to empirically examine the relationship between inventory management and private hospitals' financial performance 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. The study used a closed-ended questionnaire to collect data and simple linear regression for data analysis.
Findings: Results revealed inventory management as a significant predictor of private hospitals' financial performance in Western Uganda. The study recommended that private hospitals adopt robust and scientific inventory management systems and models that aim to optimise stock levels and minimise costs if they are to achieve substantial financial performance.
Contribution to Practice and Policy: The study has deep-rooted the urgent need for private hospitals to adopt more stringent inventory management systems that will ensure adequate stock levels, minimise costs and enhance superior financial performance. However, the study was positivistic, thus subject to methods bias that could have affected the results' validity.