Mediation of inventory control practices in proficiency and organizational performance: State-funded hospital perspective

Abstract

The organizational performance at public hospitals differs from the corporate sector and faces maladministration. Further, performance at public hospitals is crucial as it directly affects human lives and endeavors for accessibility to medicines and equipment. This research is designed to determine the mediating role of inventory control practices in proficiency and organizational performance at public hospitals. This paper uses a quantitative research with a survey method using multistage cluster sampling which was performed on a sample size of 200. Exploratory Factor Analysis and Confirmatory Factor Analysis validated the model for Structural Equation Modeling. The findings of this research indicate a significant positive effect and full mediation of inventory control practices between the study variables. Further, the significance indicated that competent and well-trained staff manages inventory efficiently for improved organizational performance through better service quality and reduced cost. An integrated second-order model of this research will benefit the public hospitals, healthcare industry at large, organizations managing mega structured inventory, and to the body of knowledge.