International Journal of Internet and Enterprise Management
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International Journal of Internet and Enterprise Management (1 paper in press)
Effective inventory management among Malaysia SMEs in the manufacturing sector towards organizational performance by Lee Kah Mung, Joshua Loo Teck Khun, Shaian Kiumarsi Abstract: In several manufacturing firms, inventory constitutes most of the current assets, and this underscores the importance of inventory management as a fundamental issue for the majority of the firms irrespective of their sizes. Therefore, the purpose of this research is to assess the factors that influence the effectiveness of inventory management of Malaysia SMEs in the manufacturing sector. The study employs PLS-SEM technique to test the hypotheses. The main findings show that documentation and records, inventory control system and qualified personnel have positive effects on effective inventory management of Malaysia SMEs in the manufacturing sector. The study also reveals that effective inventory management has a mediating effect on the relationship between documentation and records, inventory control system, qualified personnel and organizational performance. Therefore, the study recommends that Malaysia SMEs in the manufacturing sector should improve their approaches to embracing effective inventory management practices in order to enhance organizational performance. Keywords: Organizational performance; Effective inventory management; Documentation and records; Inventory stock control system; Inventory optimization philosophy; Qualified personnel.