Inventory management and customers` satisfaction in the public health sector in Delta State, Nigeria: marketing analysis
-
DOIhttp://dx.doi.org/10.21511/im.17(2).2021.07
-
Article InfoVolume 17 2021, Issue #2, pp. 69-78
- Cited by
- 1153 Views
-
1087 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study investigates the effects of inventory management on customers` satisfaction with lead time as a moderator variable in government-owned hospitals in Delta State, Nigeria. It aims to contribute to the extant literature on inventory management and customer satisfaction in developing countries, focusing on Delta State in Nigeria. Two hundred and sixty-five (265) questionnaires were distributed, comprising one hundred and five to measure inventory management variables administered among Medical Doctors, Nurses, Pharmacists, and Medical Laboratory Scientist. Similarly, one hundred and sixty questionnaires designed to measure customer satisfaction were administered to Patients. The study adopts multiple regression and structural equation modeling to analyze the data. Also, studying the impact of inventory management on customers` satisfaction some marketing analysis approaches were used. The obtained results support the appropriateness of the model as lead time possesses the qualities of a moderator between strategic supplier partnership, lean inventory, and information technology that are proxies of inventory management and customer satisfaction. Besides, the results record a positive and statistically significant relationship between strategic supplier partnership, lean inventory, and customer satisfaction at a 5 percent level of significance, respectively.
In addition, lead time has a positive and statistically significant relationship with customer satisfaction. Impliedly, this study concludes that inventory management proxies and lead time drive customer satisfaction. Thus, the government is recommended to focus on the lead time to avert the dearth of basic inventories in the hospitals.
- Keywords
-
JEL Classification (Paper profile tab)L32, M11, M31
-
References64
-
Tables5
-
Figures1
-
- Figure 1. SEM diagram
-
- Table 1. Questionnaire distributions
- Table 2. Descriptive statistics
- Table 3. Regression results
- Table 4. Fit statistics
- Table 5. SEM results
-
- Anichebe, N. A., & Agu, O. A. (2013). Effect of inventory management on organizational effectiveness. Information and Knowledge Management, 3(8), 92-100.
- Bentler, P. M., & Chou, C.P. (1987). Practical issues in structural modeling. Sociological Methods Research, 16(1), 78-117.
- Bhausaheb, A. N., & Routroy, S. (2010). Evaluation of inventory performance for perishable products through simulation. Journal of Operations Management, 9(1&2), 71-80.
- Bicheno, J. (1996). Supplier partnerships. London: National Institute for Manufacturing Management.
- Brigham, E. F., & Gapenski, L. C. (1993). Intermediate Financial Management. New York: Dyden Press.
- Buffa, E., & Salin, R. (1987). Modern Production and Operations Management. (8th ed.) New York: Wiley.
- Cacioppo, K. (2000). Measuring and management customer satisfaction. Quality Digest.
- Celik, H. E., & Yilmaz, V. (2013). Lisrel 9.1 ileYapisalEsitlikModellemesi. Ankara: Ani Yayincilik.
- Christopher, M. (2008). Logistics and supply chain management. Volume 4. Great Britain: Financial Times Prentice Hal.
- Civelek, M. E. (2018). Essentials of structural equation modeling. Nebraska: Zea Books Lincon.
- Cosma, S. A., Bota, M., Faseriu, C., Morgovan, C., Valeanu, M., & Cosma, D. (2020). Measuring Patients’ perception and satisfaction with the Romanian health care system. Sustainability, 12, 2-16.
- Darko, S., Terkper, V. D., Novixoxo, J. D., & Anning, L. (2018). Assessing the effect of lead time management on customer satisfaction. International Journal of Developing and Emerging Economies, 6(1), 1-22.
- Eckert, S. G. (2007). Inventory management and its effects on customer satisfaction. Journal of Business and Public Policy, 1(3), 1-13.
- Festinger, L. (1957). A theory of cognitive dissonance. Stanford, CA: Stanford University Press.
- Frâncu, V., & Frâncu, O. (2012). Patients’ satisfaction, a measure of health care quality. AMT, II(1), 147-148.
- Giese, J. L., & Cote, J.A. (2000). Defining consumer satisfaction. Academy of Marketing Science, 1.
- Howell, G. (2001). Introducing lean construction: Reforming project management (Report presented to the Construction User Round Table (CURT)). Lean Construction Institute.
- Jankauskienė, D., & Jankauskaitė, E. (2011). Access and quality of health care system by opinion of patients in ten European countries. Managing Health, 15, 31-39.
- Jones, T., Sasser, W., & Earl, W. Jr. (1995). Why satisfied customers defect? Harvard Bsusiness Review, 73(6), 88-99.
- Kelley, S. W., & Davis, M. A. (1994). Antecedents to customer expectations for service recovery. Journal of the Academy of Marketing Science, 21(1), 52-61.
- Khalifa, M. L. V. (2002). Satisfaction with internet-based services: The role of expectations and desires. International Journal of Electronic Commerce, 7(2), 31-49.
- Kline, R. B. (2005). Principles and practice of structural equation modeling 3rd еd. New York: Guilford.
- Krafcik, J. F. (1988). Triumph of the lean production system. Sloan Management Review, 30, 41-51.
- Kumar, S., & Upadhaya, G. (2017). Structure equation modeling basic assumptions and concepts: A novice guide. International Journal of Quantitative and Qualitative Research Methods, 5(4), 10-16.
- Kwadwo, B. P. (2016). The impact of efficient inventory management on profitability: Evidence from several manufacturing firms in Ghana Industrial. Journal of Finance and Accounting, 5(1), 22-26.
- Levinson, M. (2005). The link between inventory and customer satisfaction. CIO Magazine.
- Loughrin, M. (2008). Lean thinking and vendor managed inventory (A working paper). University of Liverpool.
- Lyson K. (1996). Purchasing and Chartered Institute of Purchasing and Supply. London: Pitman Purchasing.
- Mattila, A., & O’ Neill, J. W. (2003). Relationship between hotel room pricing, occupancy, and guest satisfaction: A longitudinal case of a Midscale hotel in the United States. Journal of Hospitality and Tourism Research, 27(3), 328-341.
- Mendoza Aldana, J., Piechulek, H., & Al-Sabir, A. (2002). Client satisfaction and quality of health care in rural Bangladesh. World Health Organization, 79, 512-517.
- Mehfooz, A., Muhammad, A., Faisal, H., Umair, K., Shoaib, K., Qaisar, S., Wassem, A. K., Aamir, M., Abid, A., & Junaid, K. (2012). Inventory management and its effects on customer satisfaction. Oeconomics of Knowledge, 4(3), 11-22.
- Mfwaya, J. L. (2013). Lead time management and customer satisfaction in the telecommunication industry in Kenya (Master’s thesis). University of Nairobi, Nairobi, Kenya.
- Mohammed, H. D. (2018). The effect of information technology on inventory management for the manufacturing companies in Mogadishu. European Journal of Logistics, Purchasing and Supply Chain Management, 6(3), 20-29.
- Morgan, N. E. A., & Rego, M. (2005). Understanding firm’s customer satisfaction information usage. Journal of Marketing, 69, 131-151.
- Mpwanya, M. F. (2005). Inventory management as a determinant for improvement of customer service (Master’s thesis). University of Pretoria, South Africa.
- Mukopi, C. M., & Iravo, A. M. (2015). An analysis of the effects of inventory management in the performance of the procurement function of Sugar Manufacturing Companies in the Western Kenya Sugar Belt. International Journal of Scientific and Research Publication, 5(2), 1-14.
- Ndengane, R. M., Manson, R. B., & Mutize, M. (2021). The influence of store atmospherics on customers’ satisfaction at selected South African retail outlets. Innovative Marketing, 17(1), 26-39.
- Nordas, H. K., Pinali, E., & Grosso, M. G. (2006). Logistics and time a trade barrier (OECD Trade Policy Working Papers, No. 35). OECD Publishing.
- Nsikan, E. J., Etim, J., & Lme, T. U. (2015). Inventory management practices and operational performance of flour milling firms in Lagos Nigeria. International Journal of Supply and Operations, 1(4), 392-406.
- Nwangangi, P. W., Guyo, W., & Arasa R. (2015). Influence of inventory management on performance of manufacturing firms in Kenya. International Journal of Logistics and Management, 2(1), 23-44.
- Oballah, D., Waiganjo, E., & Wachiuri, E. W. (2015). Effect of inventory management practices on organizational performance in public health institutions in Kenya: A Case Study of Kenyatta National Hospital. International Journal of Education and Research, 3(3), 704-714.
- Office of the Auditor General. (2012). Performance audit report of the Auditor-General specialized healthcare delivery at Kenyatta National Hospital. Kenya: Kenya National Audit Office.
- Ogonu, G. C., IKegwuru, M., & Gladson, N. N. (2016). The effects of inventory management on customer satisfaction; Evidence from the supermarket industry of Nigeria. International Journal of Marketing and Communication Studies, 1(1), 37-58.
- Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469.
- Oliver, R. L. (1997). Customer Satisfaction. A behavioural perspective on the customer. New York: Mc Graw Hill.
- Patterson, P., & Johnson, L. (1997). Modeling the determinants of customer satisfaction for business-to-business professional services. Journal of the Academy of Marketing Science, 25(1), 4-17.
- Prasanna, K. S.; Bashith, M. A., & Sucharitha, S. (2009). Consumer satisfaction about hospital services: A study from the outpatient department of a private medical college hospital at Mangalore. Indian Journal of Community Medicine, 34, 156-159.
- Qosasi, A., Permana, E., Muftiadi, A., Purnomo, M., & Maulina, E. (2019). Building SME’s competitive advantage and the organizational agility of apparel retailers in Indonesia: The role of ICT as an initial trigger. Gadjah Mada International Journal of Business, 21(1), 69-90.
- Rad, M. H. (2008). Lead time reduction. A case study of BEAB Etikett and System AB (Master’s thesis). University of Borås, Sweden.
- Rosenfield, B., & Simchi-Levi, D. (2010). Designing and managing the supply chain: Concepts, strategies and case studies (3rd ed.). New York: McGraw-Hill/Irwin.
- Spreng, R. A., & Jr, T. J. P. (2003). A test of alternative measures of disconfirmation. Decision Statistics, 34(1), 31-62.
- Stevenson, B. U. (2010). Operations Management (10th ed.). New York: McGraw
- Susan, T., & Michael, K. (2000). Research Results Digest. Transit Cooperative Research Program, Number 40.
- Szymanski, D, M., & Henard, D. H. (2001). Customer satisfaction: A meta-analysis of the empirical evidence. Journal of the Academy of Marketing Science, 29(1), 16-35.
- Tarurhor, M. E. (2017). Work stress and employees’ performance amongst staff of Delta State University, Abraka. The moderating role of career development. Ilorin Journal of Management Studies, 4(1), 1-12.
- Tarurhor, M. E., & Emudainohwo, B. O. (2020). Lean manufacturing practices and firm’s performance in the Palm oil industries in Delta State. International Journal of Economics and Business Administration. VIII(4), 319-331.
- Thogori, M., & Gathenya, J. (2014). Role of inventory management on customer satisfaction among the manufacturing firms in Kenya: A case study of Delmonte Kenya. European Journal of Business and Management, 6(27), 209-217.
- Truch, E. (2006). Lean Consumption and its Influence on brand. Journal of Consumer Behaviour, 5(2), 157-165.
- Turner, M. J., Way, S. A., Hodari, D., & Witteman, W. (2017). Hotel property performance: The role of strategic management accounting. International Journal of Hospitality Management, 63, 33-43.
- Umair, A.S., Zang., Han, Z., & Haq, S. H. U. (2019). Impact of logistic management on customer satisfaction. A case of retail stores of Islamabad and Rawalpindi. American Journal of Industrial and Business Management, 9(8), 1723-1752.
- USAID. (2006). Management of Basrah children’s hospital project (SIGIR Audit 06-026 issued July).
- Wildding, R. D. (2003). The 3Ts of highly effective supply chains: Supply Chain Practice, 5(3), 30-42.
- Womack, T. P., Jones, D. T., & Ross, D. (1996). The machine changed the world. New York: Rawson Associated.
- Zerbini, F., Caru, A., & Cugini, A. (2007). The cost of customer satisfaction: A framework for strategic cost management in service industries. European Accounting Review, 16, 499-530.