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Role of Inventory Management on Competitive Advantage among Manufacturing Firms in Kenya: A Case Study of Unga Group Limited

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  • Naliaka V.W.
  • G.S. Namusonge

Abstract

The main objective of the study was to investigate the role of inventory management on the competitive advantage of manufacturing firms in Kenya, with reference to Unga Group Limited. Specifically, the study assessed the extent to which information technology is used in inventory management in Unga Group Limited, determine how inventory lead time, inventory control and inventory control practices affect competitive advantage of Unga group limited. The study adopted a descriptive research design to support and meet the research objectives. The target population was all the 289 employees working at Unga Group Limited headquarters who directly deal with inventory management. Stratified sampling and simple random sampling techniques were employed in the selection of 30 respondents. The study used both primary and secondary data. Primary data was collected using self-administered questionnaires consisting of closed ended and open-ended questions. The data collected was analyzed by descriptive statistics using a statistical package for analysis (SPSS). The study revealed that information technology, inventory control systems, inventory lead time and inventory control practices are important factors in attainment of competitive advantage of manufacturing firms in Kenya. The study recommended that the firm should embrace inventory control systems and information technology so as to improve and enhance competitive advantage. This study also recommended a similar research on other industries to ascertain whether the findings of the study are universal.

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  • Naliaka V.W. & G.S. Namusonge, 2015. "Role of Inventory Management on Competitive Advantage among Manufacturing Firms in Kenya: A Case Study of Unga Group Limited," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(5), pages 87-104, May.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:5:p:87-104
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    References listed on IDEAS

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    1. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    2. Battini, Daria & Faccio, Maurizio & Persona, Alessandro & Sgarbossa, Fabio, 2009. "Design of the optimal feeding policy in an assembly system," International Journal of Production Economics, Elsevier, vol. 121(1), pages 233-254, September.
    3. Pong, Christopher K.M. & Mitchell, Falconer, 2012. "Inventory investment & control: How have UK companies been doing?," The British Accounting Review, Elsevier, vol. 44(3), pages 173-188.
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    2. Pedro Teixeira & Arnaldo Coelho & Pedro Fontoura & José Carlos Sá & Francisco J. G. Silva & Gilberto Santos & Luis P. Ferreira, 2022. "Combining lean and green practices to achieve a superior performance: The contribution for a sustainable development and competitiveness—An empirical study on the Portuguese context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 887-903, July.
    3. NJUGUNA, Naomi Njeri & Dr. Josphat Kwasira & Dr. Anne Kariuki, 2024. "Horizontal Integration Strategies and Competitiveness of Firms in EPZ Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1660-1676, February.

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