INVENTORY VISIBILITY AND PERFORMANCE OF LEVEL 4 PRIVATE HOSPITALS IN KENYA

Abstract

Healthcare system in Kenya is still a national challenge, five decades after independence. Accountability and transparency on the utilization of health resources is also a major issue and as a result, ministry of health is the second most corrupt ministry in Kenya and the health department in the county governments is the department most perceived to be prone to corruption. Therefore, the study sought to determine the effect of inventory visibility on performance of level 4 private hospitals in Kenya. The study also sought to establish the moderating effect of technology adoption on the relationship between inventory visibility and performance of level 4 private hospitals in Kenya. The study was anchored on Resource-Based View (RBV) theory and Technology Acceptance Model (TAM). The study adopted cross-sectional research design and positivist research paradigm. The unit of analysis was the 368 level 4 private hospitals in Kenya while the unit of observation was heads of procurement, quality assurance, finance, risk and compliance and audit. Therefore, the target population was 1840 heads of departments in level 4 private hospitals in Kenya. Krejcie and Morgan (1970) formula was adopted in calculating appropriate sample size. From the formula, the sample size for the study was 320 respondents. The sample was selected using stratified random sampling. The study used primary data collected using semi-structured questionnaires. The study collected both qualitative and quantitative data, Qualitative data was analysed using content analysis a presented in prose form. Quantitative data was analysed using SPSS version 28. Descriptive statistics including means, percentages, frequencies and standard deviations were used to analyse quantitative data. Inferential statistics using Pearson R correlation, simple regression and multiple regressions were also computed. The study concludes that inventory visibility positively and significantly influences with performance of private hospitals in Kenya. The study also concludes that technology adoption has significant moderating effect on the relationship between inventory visibility and performance of private hospitals in Kenya. Based on the findings, the study recommends private hospitals to invest in advanced inventory management software that allows real-time tracking and monitoring of medical supplies, medications, and equipment. This software should provide visibility into inventory levels, expiration dates, and usage patterns.

Key Words: Inventory Visibility, Technology Adoption, Level 4 Private Hospitals