Governance Mechanisms, Information Sharing, Transaction Costs and Medical Chain Performance in Kampala District
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Date
2023
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Makerere University Business School
Abstract
The purpose of the study was to examine the relationship between governance mechanisms, information sharing, and medical supply chain performance in Kampala district. The study adopted a descriptive and analytical design whereby a cross-sectional survey research design was used to gather data from the study population. Correlation and regression designs were adopted to explain the relationships between the variables of study and the extent to which the independent variables explain the dependent variable.
The unit of inquiry was comprised of 3 health officials and 2 procurement personnel in each health facility. 5 respondents were selected from each distribution company. Therefore, there
was a total of 50 respondents from Heath Centre IIs, 30 respodents from Heath Centre IIIs, 5 from Heath Centre 1Vs, 35 from Hospitals and 10 respondents from the Distributors, therefore a total of 130 respondents from health facilities and 10 respondents from distribution companies were considered during the study. Simple random sampling was used to select the first respondents from any of the categories of health centers and Distribution Company and
snowball sampling was used for selection of the second respondent to participate in the study. The data was tested for reliability, analyzed using SPSS and results presented based on the
study objectives.
The results from the study revealed that there is a positive and significant relationship between governance mechanisms and medical supply chain performance. Also a positive and significant relationship was found between information sharing and medical supply chain performance in Kampala district. The relationship between transaction costs and supply chain performance was a negative significant relationship. For example, if a Health Centre/Hospital alters the facts about supplies slightly in order to get what it needs this may affect the capacities of medical supply chains to sufficiently handle any possible needs of our patients, since the information
given is not truthful which negatively affects supply chain performance.
The study therefore recommended that medical supply chain partners and policy makers should put in place systems to enhance information sharing and while reducing transaction costs since
they were found to be significant predictors of medical supply chain performance. Also the key players in the medical supply chain should put more emphasis on ensuring proper governance mechanisms are established to ensure adherence to set policies and procedures and endeavour to eliminate behavioural uncertainty and opportunism. Also The health centre/hospital officials, NMS officers and manufacturers of medicines should undertake a deliberate policy
to always interact with the patients to be able to understand how they perceive the performance of the ,medical supply chain supply as far as refill rate, stock outs and on-time delivery of medicines are concerned. This will help identify the gaps in medical supply chain and make effort to close the gaps as a means of enhancing effectiveness and efficiency of the supply chain.
Description
Research Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Science in Procurement and Supply Chain Management of Makerere University. (Plan A).
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Citation
Shakillah, K. (2023) Governance Mechanisms, Information Sharing, Transaction Costs and Medical Chain Performance in Kampala District. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.