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The effect of strategic inventory management on organizational performance: A mediating role of inventory management knowledge

Author

Listed:
  • Salim Al Shukaili

    (University of Selangor)

  • Zaharuzaman Jamaluddin

    (University of Selangor)

  • Norhayah Zulkifli

    (University of Selangor)

Abstract

The logistics industry in Oman plays a critical role in the nation’s Vision 2040 economic diversification agenda. However, small and medium-sized enterprises (SMEs) in this sector face persistent challenges in managing inventory effectively due to limited resources, poor adoption of technology, and inadequate inventory management knowledge. This study investigates the effect of Strategic Inventory Management (SIM) practices on Organizational Performance (OP) in the logistics sector of Oman, with a focus on the mediating role of Inventory Management Knowledge (IMK). Grounded in the Resource-Based View, data were collected from 357 logistics SMEs through a structured questionnaire and analyzed using Structural Equation Modeling (SEM). Findings show that SIM significantly enhances OP, with Vendor Managed Inventory (VMI) and Material Requirement Planning (MRP) exerting the strongest impact. IMK was found to partially mediate the SIM and OP relationship, confirming their role as vital enablers in achieving sustainable performance. This research contributes to theory by extending RBV to logistics SMEs in an emerging economy and offers practical implications for managers and policymakers to strengthen technological and knowledge infrastructures in the logistics industry.

Suggested Citation

  • Salim Al Shukaili & Zaharuzaman Jamaluddin & Norhayah Zulkifli, 2025. "The effect of strategic inventory management on organizational performance: A mediating role of inventory management knowledge," International Journal of Business and Management (IJBM), International Emerging Scholars Society (IESS), New Zealand, vol. 4(2), pages 381-406, November.
    • Handle: RePEc:cwd:ijbmnz:v:4:y:2025:i:2:p:381-406
    DOI: 10.56879/ijbm.v4i2.234
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    References listed on IDEAS

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    1. Catherine Marinagi & Panagiotis Reklitis & Panagiotis Trivellas & Damianos Sakas, 2023. "The Impact of Industry 4.0 Technologies on Key Performance Indicators for a Resilient Supply Chain 4.0," Sustainability, MDPI, vol. 15(6), pages 1-31, March.
    2. Kalaitzi, Dimitra & Tsolakis, Naoum, 2022. "Supply chain analytics adoption: Determinants and impacts on organisational performance and competitive advantage," International Journal of Production Economics, Elsevier, vol. 248(C).
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