EFFECT OF COMPETITIVE ADVANTAGE ON THE RELATIONSHIP BETWEEN SUPPLY CHAIN QUALITY MANAGEMENT PRACTICES AND PERFORMANCE OF PRIVATE HOSPITALS IN KENYA

Abstract

The objective of the study was to determine the effect of competitive advantage in the
relationship between supply chain quality management practices and performance of private
hospitals in Kenya. This study was anchored on positivist research philosophy with
descriptive cross-sectional census survey as the design. Primary data was collected using
structured questions in form of questionnaires from persons tasked with the responsibility of
making drug supply chain decisions in Kenyan private hospitals based on their skills and
knowledge at management level. The response rate was 77.56%. Reliability and validity for
measurement items were confirmed using diagnostic tests. Model fitness was verified by
means of Chi Square test (χ2), GFI, RMSEA and SRMR. Covariance based, Structural
equation modeling (CB-SEM) and hierarchical regression data analysis techniques were
applied to test hypothesis that there is significant mediating effect of competitive advantage
in the relationship between SCQM practices and the performance of private hospitals.
Finding established partial mediation of competitive advantage in the relationship. The study
recommends that private hospitals should always seek to gain competitive advantage by
exploiting all unique market opportunities and counteracting competitor threats. This study
avails a conceptual framework and methodological applicable as a point of reference for
further studies.
Key words: Competitive advantage, supply chain quality management practices, private
hospitals