IMPACT OF INVENTORY MANAGEMENT ON FIRM’S COMPETITIVENESS AND OPERATIONAL PERFORMANCE

Abstract

Purpose: To identify the impact of inventory management practices on competitive advantage. To identify the effects of practices of inventory management and competitive advantage on operational performance. To determine the impact of inventory management practices on operational performance with the mediation of competitive advantage. Methodology: The study has specifically focused on Karachi-based manufacturing firms of Pakistan for collection of data. The study targeted 200 responses. However, in case ofthe current study, purposive sampling technique suitably aligns with the research purpose. The study has used PLS-SEM. Findings: The relationship between competitive advantage and operational performance is positive and significant. Similarly, inventory management practices showed a positive and significant impact on competitive advantage. The relationship between inventory management practices and operational performance is positive but insignificant. Limitations: It is very difficult to gather the information in vast amount from various firms in Pakistan the first division is supply chain sector of Karachi is selected to accumulate the data identification with this study