Inventory Management Techniques and Supply Chain Efficiency: the Moderating Effect of Technology Readiness

Abstract

Purpose: This study aims to investigate the moderating effect of technology readiness on the relationship between inventory management techniques and supply chain efficiency. Methodology: The research design for this study adopts a quantitative approach, supplemented by elements of a survey methodology. A cross-sectional design is employed, as data was gathered at a single point in time, making it suitable for identifying patterns, relationships, and variations within the research context. The quantitative design is grounded in the need to test hypotheses and draw objective conclusions. This study employs convenience sampling to obtain a sample size of 280. This study utilizes structured survey questionnaires as the primary data collection instrument. Findings: The findings of the study concluded that there is a strong and statistically significant relationship between inventory management techniques and supply chain efficiency. Positive significant relationship exists between technology readiness and supply chain efficiency. Technology readiness positively moderates the relationship between inventory management techniques and supply chain efficiency. Unique Contribution to Theory, Practice and Policy: The findings challenge traditional supply chain efficiency models that primarily focus on inventory management techniques as the central factor influencing performance. By introducing technology readiness as a moderating variable, this study expands existing models to incorporate the role of technological infrastructure and employee preparedness in the effectiveness of inventory management. The strong moderating effect of technology readiness suggests that organizations cannot solely rely on optimizing inventory management techniques without considering their technological capabilities. Managers should recognize the interdependence between inventory management techniques and technology readiness and prioritize both areas simultaneously.