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.