Influence of Inventory Control Practices on Procurement Performance of Public Hospitals in Trans Nzoia County

Hospitals procure almost all the products that they use for both pharmaceutical and non-pharmaceutical purposes, food items, cleaning agents among others. A significant amount of hospitals’ expenditure goes to purchasing of these items. However, poor inventory control of these products lead to loss, misuse, lack of accountability and poor management of these products. This study looked at the relationship between inventory control practices and procurement performance of public hospitals in Trans Nzoia County with regards to use of economic order quantity, safety stock ordering, first-in-first-out and inventory audit. The main objective of this study was to assess the influence of inventory control practices on procurement performance of public hospitals in Trans Nzoia County. A survey research design was used in this study. The study was conducted in public hospitals in Trans Nzoia County which comprised of Kitale County Hospital, Mt. Elgon Hospital and six sub-county hospitals (Endebes, Kwanza, Cherang'any, Saboti, Kapsara and Matunda Sub-County Hospitals). The study employed census as the sampling technique. The sample size for this study was 47 respondents comprising of heads of departments of procurement and stores, their assistants as well as employees working in those departments. A structured questionnaire was used for collecting data. The research instrument was pretested at Kapenguria County Referral Hospital and Chepararia sub-county hospital; West Pokot County. Collected data was analyzed using statistical package SPSS. Pearson correlation and multiple linear regression were used for inferential analysis. The study found out that the use of economic order quantity had significant influence on procurement performance of public hospitals in Trans Nzoia County. However, EOQ did not take into account changing consumer demand and seasonal changes in inventory costs. Safety stock ordering had significant influence on procurement performance of public hospitals in Trans Nzoia County. Hospitals always had safety stocks of its inventories. Safety stock ordering absorbed the variability of customer demand and was used to protect the hospital from stock-outs caused by inaccurate planning. High level of safety stock ordering led high customer satisfaction. However, high level of safety stock ordering led to high holding costs for the hospitals. FIFO had a positive significant influence on procurement performance of public hospitals in Trans Nzoia County. FIFO resulted in a higher ending inventory and lower cost of inventory. Inventory audit had a positive significant influence on procurement performance of public hospitals in Trans Nzoia County. Inventory audit ensured timely and adequate identification and evaluation of inventories and enabled the hospitals evade risks associated with stock such as unnecessarily high stock levels. The study recommended that hospitals should find a complementary inventory control practice to the use of EOQ which takes take into account changing consumer demand and seasonal changes in inventory costs

Relationship between Cultural Orientation and Strategy Implementation in Water Service Providers in Western Kenya

Strategy implementation is viewed as an integral component of the strategic management process that turns formulated strategies into actionable activities. The purpose of this study was to evaluate how cultural orientation, specifically market-oriented culture, related to strategy implementation in water service providers in Western Kenya. The study was guided by the organizational culture theory. The study adopted a descriptive survey research design. The study population consisted of employees working with Vihiga, Kakamega County and Busia water companies. The study employed a census design and obtained 70 respondents as the unit of analysis. A structured questionnaire was used in data collection. The questionnaire was pilot tested prior to its use in collection of data for the main study. The collected data were analyzed with the help of Statistical Package for Social Sciences programme. Both descriptive and inferential statistics were employed. The study results were presented in form of tables. The study concluded that corporate culture is very important in determining the success of water companies. Market-oriented culture (t = 29.592; p< 0.05was found to be of paramount importance in enhancing strategy implementation in water companies. The study recommended that management of water companies should ensure that the culture embraced by the WSPs does not result in resistance from employees and other stakeholders; so as to ensure that the execution of organizational strategies is not curtailed

Effect of Inventory Conversion Period on Liquidity of Equity Securities of Companies at Nairobi Securities Exchange

Investors consider Liquidity of assets as an avenue of finances to the organizations. Illiquidity has led most of the listed companies to run insolvent in that considerable managerial obligations in firms fail to be honoured. Liquidity is considered as the capability with which a security could either be sold or bought at securities exchange. Inventory Conversion period, arises from Working Capital elements which is preferred as relevant on determining the level of cash cycle conversion period which is vital for the organization’s contractual functions both internally and externally. Inventory Conversion Period is an internal function of the organization that provides in-house financial information that assist investors to make decisions over the existence of a firm and how such a firm can be recognized by external investors who would like to associate themselves with the firm. The objective of the study was to examine the effect of Inventory Conversion Period on Liquidity of Equity Securities of Firms listed at Nairobi Securities Exchange. This study considered target population of the entire listed sixty one firms during the closing of the financial year 2016 and embraced a study period of ten years. The study applied panel data that consisted of secondary information for all companies found from publicized audited financial reports. Census technique was used on entire population of companies since it was comparatively moderate and manageable. This study used Descriptive research design anchored on pragmatism philosophy since the design could depict and describe the situation of the population the way it really was. E-views software was applied for descriptive and inferential statistical analysis and on panel data for regression analysis. Findings on Inventory Conversion Period indicated a positive and significant effect on Liquidity of Equity Securities at Nairobi Securities Exchange. This study embraced for proper management of inventory conversion period since improves on Liquidity of Equity Securities of companies listed at Nairobi Securities Exchange. The study recommended for further research on the Inventory Conversion Period and Liquidity of Equity Securities since it was just but one of components of working capital components, hence results could be different when combined with other independent variables and the regressed on Liquidity of equity securities at the securities exchange market.Keywords: Liquidity, Inventory Conversion Period, Firm Size, LiquidityDOI: 10.7176/RJFA/11-22-09Publication date: November 30th 202

Effect of Cash Conversion Period on Liquidity of Equity Securities of Companies at Nairobi Securities Exchange

Liquidity has a considerable influence on performance of equity securities of firms listed at the securities market. Liquidity is considered as the readiness, capability with which a security could either be sold or bought at securities exchange. Cash conversion period emanating from Working Capital elements is preferred as essential on determining the efficiency of transaction functions within the organization. Apart from internal managerial effects of individual firms on Cash Conversion Cycle that streamlines performance, liquidity as a measure of how the equity securities perform on the securities exchange market is relevant to investors since firms do fail because of illiquidity of assets. An organization’s success, rally on the investors’ matching of the internal and external managerial effects of the organization. Cash Conversion Period reflects internal effects and liquidity at the securities exchange provides external effects of the organization while trading at the securities market. This study was to determine the effect of Cash Conversion Period on Liquidity of Equity Securities of firms listed at Nairobi Securities Exchange. This study considered target population of the entire listed firms during the closing of the financial year 2016 and embraced a study period of ten years. The study applied panel data that consisted of secondary information for all companies found from publicized audited financial reports. Census technique was used on entire population of 61 companies since it was comparatively moderate and manageable. This study applied Descriptive research design anchored on pragmatism philosophy since the design could depict and describe the situation of the population the way it really was. E-views software was applied for descriptive and inferential statistical analysis and more so on fixed and random effects on panel data for regression analysis. Findings on Cash Conversion Period indicated a positive coefficient and significant probability value which meant a decrease or increase in Cash Conversion Period had a significant effect on Liquidity of Equity Securities at Nairobi Securities Exchange. This study recommended for further research on the independent variable since Cash Conversion Period was just but one of components of working capital components, hence results could be different when combined with other independent variables and the regressed on Liquidity of equity securities at the securities exchange market. Keywords: Liquidity, Cash Conversion Period, Firm Size, Liquidity  DOI: 10.7176/RJFA/11-22-03 Publication date: November 30th 202