Impact of Inventory Management on Financial Performance of MSMEs in Santiago City

Authors

  • Marilyn Gaoat University of La Salette, Inc, Philippines
  • Claire Cabungcal University of La Salette, Inc, Philippines
  • Catherine Enriques University of La Salette, Inc, Philippines
  • Zyra Medios University of La Salette, Inc, Philippines
  • Harleyne Ruiz University of La Salette, Inc, Philippines
  • John Lloyd Villanueva University of La Salette, Inc, Philippines
  • Bartman Gacrama University of La Salette, Inc, Philippines

DOI:

https://doi.org/10.54536/ajebi.v2i3.1839

Keywords:

Financial Performance, Inventory Management, Micro Small and Medium Enterprises, Operational Efficiency

Abstract

The study aims to investigate the impact of inventory management on the operational efficiency and financial performance of micro, small, and medium enterprises (MSMEs) in Santiago City. A correlational descriptive cross-sectional survey design was utilized on a sample of randomly selected 314 participants belonging to the merchandising MSMEs from Santiago City. Primary data was collected using self-administered questionnaires analyzed using frequency and percentage, mean and standard deviation, and linear regression. The results showed that MSMEs are efficient in inventory management, operation and have good financial performance. It further suggests a strong positive relationship between inventory management and operational efficiency and a moderate positive relationship between inventory management and financial performance. The study offers practical guidance to MSMEs on optimizing their operational efficiency and maintaining good financial performance through effective inventory management practices. It gives owners and managers valuable insights into specific areas that need improvement and the underlying factors that inventory management affects. Furthermore, the research deepens the understanding of the intricate relationship between inventory management, operational efficiency, and financial performance within the context of MSMEs in Santiago City, thus enriching the existing knowledge for researchers and practitioners.

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Author Biographies

Claire Cabungcal, University of La Salette, Inc, Philippines

 

 

 

 

Catherine Enriques, University of La Salette, Inc, Philippines

 

 

Zyra Medios, University of La Salette, Inc, Philippines

 

 

Harleyne Ruiz, University of La Salette, Inc, Philippines

 

 

John Lloyd Villanueva, University of La Salette, Inc, Philippines

 

 

Bartman Gacrama, University of La Salette, Inc, Philippines

 

 

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2023-08-24

How to Cite

Gaoat, M. G., Cabungcal, C., Enriques, C., Medios, Z., Ruiz, H. R., Villanueva, J. L., & Gacrama, B. (2023). Impact of Inventory Management on Financial Performance of MSMEs in Santiago City. American Journal of Economics and Business Innovation, 2(3), 11–24. https://doi.org/10.54536/ajebi.v2i3.1839