EFFICIENCY OF INVENTORY MANAGEMENT TECHNIQUES AND PERFORMANCE OF CONSTRUCTION INDUSTRY FIRMS IN SOUTH SOUTH, NIGERIA

Purpose: The study aims at providing insight into the extent to which some factors influence the effectiveness of inventory management, as well as the level to which the inventory management affect the performance of firms operating in the construction industry in south south, Nigeria.
Design/methodology/approach: Data for the study were collected from 204 small and 46 medium construction industry firms selected using stratified purposive sampling techniques. The relationships and hypothesis proposed in the conceptual framework were tested using structural equation modeling (SEM).
Findings: The finding of the study shows that the identified factors have positive relationship with the efficiency of inventory management techniques. Another finding from the study is that a positive relationship exists between efficient inventory management techniques and construction industry firms’ performance in terms of time, cost, quality and profitability, while an indirect positive relationship also exists between the identified influencing factors and the construction industry firms’ performance.
Research limitation/implications: The study purposively selected only small and medium construction firms in south- south, Nigeria. This is not exhaustive enough; therefore, the results may not be generalized for the entire construction firms in Nigeria.
Originality/value: The study established the significance of efficient inventory management and its contribution to the overall sustainability and survival of construction firms in the built environment.