TITLE:
The Effect of Pharmaceutical Inventory Management Practices on the Performance of Public Health Institutions: Evidence from Ndola Teaching Hospital, Zambia
AUTHORS:
Diana Kashell Mwaba, Mathews L. Sichone, Martina Ngoma, Christina Chisanga, Hope Kalasa, Lawrence Simovwe, Shepherd Khondowe
KEYWORDS:
Inventory Management, Inventory Shrinkage, Inventory Records Accuracy, Staff Competence, Organizational Performance, Public Health Supply Chain, Zambia
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.16 No.10,
October
16,
2026
ABSTRACT: Effective inventory management is central to the ability of public health institutions to keep essential medicines and medical supplies available, accessible, and appropriately used. This study examined the effect of pharmaceutical inventory management practices on the organizational performance of Ndola Teaching Hospital, a public referral hospital in Zambia’s Copperbelt Province. Using a descriptive case-study design combined with a mixed-methods approach, the study administered structured questionnaires to a census of 96 pharmacy, pharmacy-technology, and supply-chain personnel at the hospital. Data were analyzed using descriptive statistics and Pearson correlation, complemented by an ordinary least squares regression of organizational performance on inventory shrinkage, inventory records accuracy, and staff competence level. The results show a weak, statistically non-significant negative correlation between inventory shrinkage and organizational performance (r = −0.0264, p = 0.689). By contrast, inventory records accuracy (r = 0.3728, p = 0.004) and staff competence level (r = 0.2921, p = 0.038) were positively and significantly associated with performance. The regression model explained approximately 19.7% of the variance in organizational performance (R2 = 0.1968, F(3, 92) = 5.31, p = 0.0025). The findings suggest that, in this setting, accurate record-keeping and workforce competence are more consequential levers of hospital performance than shrinkage control alone. The study recommends that the Ministry of Health and hospital management prioritize staff training and the strengthening of electronic inventory record systems as part of efforts to improve supply-chain performance in Zambia’s public health sector.