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The mediating effect of knowledge in the relationship between inventory management practices and performance: the case of micro retailing enterprises

Ahmad, Kamilah and Mohamed Zabri, Shafie (2018) The mediating effect of knowledge in the relationship between inventory management practices and performance: the case of micro retailing enterprises. Journal of Business and Retail Management Research (JBRMR), 12 (2). pp. 83-93. ISSN 17518202

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Abstract

The adoption of systematic inventory management practices (IMPs) is a critical success factor for businesses in a retailing industry. Nevertheless, there is lack of thorough understanding in the field of inventory management within a micro business setting. Thus, this study empirically explores the extent of IMPs in the micro retailing enterprises and the mediating effect of knowledge of IMPs on the relationship between IMPs and micro enterprises’ performance. A questionnaire was sent to a random sample of 300 Malaysian owners/managers of micro retailing enterprises and 100 completed replies were received. The study finds that the usage level of systematic IMPs is moderate among the micro retailing enterprises with evaluation of suppliers as the most frequently applied IMPs. Meanwhile, inventory management activities related to reorder point, purchasing and controlling are adopted moderately. Interestingly, this study confirms that there is a significant direct effect of IMPs on enterprise performance. The relationship is partially mediated by knowledge of inventory management. This research enhances the body of knowledge in inventory management and the firm’s performance particularly within the context of micro enterprises.

Item Type: Article
Uncontrolled Keywords: Inventory management; performance; knowledge of owner/manager; retailing sector; small and medium enterprises
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Technology Management and Business > Department of Production and Operation Management
Depositing User: Mr. Mohammad Shaifulrip Ithnin
Date Deposited: 23 Jun 2019 07:01
Last Modified: 23 Jun 2019 07:01
URI: http://eprints.uthm.edu.my/id/eprint/11267
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