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