Professional Documents
Culture Documents
PPM 2023 02 Halassa
PPM 2023 02 Halassa
pharmacies in Jordan”
Omar Halassa
AUTHORS
Rashad Al Saed
Omar Halassa and Rashad Al Saed (2023). The impact of supply chain drivers
ARTICLE INFO on the performance of Ministry of Health pharmacies in Jordan. Problems and
Perspectives in Management, 21(2), 439-448. doi:10.21511/ppm.21(2).2023.41
DOI http://dx.doi.org/10.21511/ppm.21(2).2023.41
LICENSE This work is licensed under a Creative Commons Attribution 4.0 International
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Problems and Perspectives in Management, Volume 21, Issue 2, 2023
INTRODUCTION
Supply chain drivers become a possible way to a competitive advan-
tage for organizations by improving their performance. The impor-
tance of supply chain drivers comes from their role in enhancing the ef-
fectiveness and efficiency of organizations, which affects their growth
and success. Many supply chain drivers recommend creating value
for customers, with logistics, transportation, inventory management,
service management, information distribution, pricing, and procure-
ment as one of the most critical drivers. Good management of these
drivers could enhance business performance (Shahzadi et al., 2013).
According to Lummus and Vokourka (1999), many organizations fol-
This is an Open Access article, low several steps in supply chain practices, such as the information
distributed under the terms of the distribution system, job adoption, and integration between the supply
Creative Commons Attribution 4.0
International license, which permits chain and enterprise strategy. Hamdan (2019) indicates setting objec-
unrestricted re-use, distribution, and tives for the supply chain and the relationship with both suppliers and
reproduction in any medium, provided
the original work is properly cited. customers through logistics management, which leads to integration
Conflict of interest statement: between the supply chain strategy and the enterprise strategy and thus
Author(s) reported no conflict of interest increases the performance.
http://dx.doi.org/10.21511/ppm.21(2).2023.41 439
Problems and Perspectives in Management, Volume 21, Issue 2, 2023
The Jordanian Ministry of Health plays a significant role by supplying all of Jordan’s hospitals and med-
ical centers with medications, medical and non-medical consumables, and medical devices. This signifi-
cant role is done by the Directorate of Purchase and Supply, which is trying hard to ensure the efficiency
of the supply chain. Despite that, it faces many challenges to ensure this efficiency. These challenges are
summarized (from the research observation and practical experience) as a delay in the delivery from
some of suppliers, over inventory of hospitals and medical centers, and delay in the transportation from
the Directorate to hospitals and medical centers.
During the past two years, the Jordanian Ministry of Health faced an unexpected challenge due to the
coronavirus pandemic, which generated a massive increase in service demand. The government com-
mitted to treating all the coronavirus cases at its own expense. This situation created a need to build four
new field hospitals across the country, which affected the whole supply chain drivers of the Jordanian
Ministry of Health (WHO, 2021). The problem statement of the study was identified by reviewing the
previous research related to supply chain drivers and organizational performance (Chand et al., 2022;
Rana & Osman, 2018; Viet et al., 2018; Al Draj & Al Saed, 2023; Chopra & Gupta, 2020). All of those
previous studies focused on developing a model for studying the efficiency of the supply chain and per-
formance; this study seeks to contribute new evidence to this topic.
440 http://dx.doi.org/10.21511/ppm.21(2).2023.41
Problems and Perspectives in Management, Volume 21, Issue 2, 2023
request, such as an idle balance table, inventory, or the impact of the factors driving the complexity of
price list (Al-Awamla, 2018). the supply chain (upstream, operation, complemen-
tary, and external) on the operational performance
Supply chain operators (drivers, technicians, manag- of companies. Rana and Osman (2018) studied the
ers, and employees) must be able to analyze data and effect of supply chain drivers (information technol-
processes, find creative solutions, generate reports ogy for a supplier, inventory management, transpor-
and present findings to senior management and oth- tation, and coordination) on the performance of the
er departments, communicate with external suppli- supply chain. Viet et al. (2018) provided an organized
ers and buyers, understand legal documents, and de- overview of the information values in the various
velop lasting relationships with others. In addition, supply chain decisions.
they play an active role in developing and maintain-
ing good relationships with the company’s suppliers Chopra and Gupta (2020) developed a model to ex-
and distributors (Peng Wong & Yew Wong, 2021). amine the impact of knowledge management prac-
tices (knowledge sharing culture, knowledge-based
Supply chain coordination also plays an essential human resource management, strategy and lead-
role in the development process, from the compa- ership, information and communication technol-
ny that intends to carry out development operations ogy) on organizational performance using the four
on the new product to the delivery of the product in balanced scorecard results. Tomic and Brkic (2019)
its final form. Supply chain managers influence the researched the impact of ISO quality improvement
company to formulate what is needed by providing requirements. Musanzikwa and Ramchander (2018)
the expertise they possess, to increase productivity, investigated the factors of organizational culture
efficiency, and safety. Coordination also affects all influencing the supply chain performance in state-
aspects of the manufacturing process. Candidates owned companies (efficacy of achieving goals of fi-
for the position of supply chain manager must have nance, customer satisfaction, internal business pro-
strong communication skills and a passion for work- cesses, learning and growth). Al-Taweel and Al-Keeki
ing with others (Tomic & Brkic, 2019). (2009) examined the impact of distribution activities
on the organizational performance of the Nineveh
The performance consists of two main elements: ef- company that manufactured medicines and med-
ficiency and effectiveness. Efficiency is the value of ical supplies. Supply chain management affects the
resources used to produce a product unit. Thus, it is performance of industrial companies in the Kuwait
the thought of rationally using the available human, Inventory Exchange. Logistics management impact-
material, and financial resources and information ed the quality of services provided by the nutrition
(Bataineh et al., 2015). Effectiveness is an indicator departments in private Jordanian hospitals (Al abadi
of the extent to which goals are achieved. It focus- & Al Saed, 2020).
es on the goals set by the organization and the ex-
tent to which they are achieved, in addition to im-
proving its internal operations and obtaining scarce 2. AIM AND HYPOTHESES
resources from the environment in which it oper-
ates (Abdallah & Alkhaldi, 2019). According to the Following the literature review, this study seeks
World Health Organization (2021), it is the complete to measure the impact of supply chain drivers
state of physical, mental, and social well-being of a (facilities, inventory, transportation, information,
person, not only the absence of disease or infirmity, sourcing, and coordination) at α ≤ 0.05 on the
which is a human right and a fundamental right of Ministry of Health pharmacies’ performance (cus-
society, a means to achieve its slogan “Health for All.” tomer satisfaction, internal process, and learning
Hence, the lack of high-quality medical preparations, and growth) at Jordan. Therefore, the study sug-
the lack of trained professional health capabilities, gests the following hypothesis as per the research
and the low level of health education are highlighted conceptual model (Figure 1).
as significant challenges of pharmaceutical services.
H01: There is an insignificant impact of the supply
Xiong et al. (2022) examined the impact of dual sup- chain drivers (inventory, facilities transpor-
ply chain drivers. Chand et al. (2022) aimed to verify tation, sourcing, coordination, and informa-
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Problems and Perspectives in Management, Volume 21, Issue 2, 2023
tion) at α ≤ 0.05 on the Ministry of Health prehensive inventory method, random sampling
pharmacies’ performance (internal process, collected data, and their size was determined us-
customer satisfaction, and learning and ing a statistical approach (Sekaran & Bougie, 2016).
growth) at Jordan. Therefore, 300 electronic questionnaires were de-
signed via Google Sheets and sent via email and
The following sub-hypotheses result from the social media. The study retrieved 252 question-
main hypothesis: naires valid for analysis.
H01.1: There is an insignificant impact of the sup- A questionnaire was designed to cover all dimen-
ply chain (inventory, facilities transportation, sions of the study variables, including independ-
sourcing, coordination, and information) at ent and dependent, in a manner that enables
α ≤ 0.05 on the customer satisfaction of the testing the study hypotheses. To enhance the re-
Ministry of Health pharmacies’ performance liability and credibility of the data, this study re-
in Jordan. lied on the measures mentioned in previous stud-
ies, which have proven reliability and credibility.
H01.2: There is an insignificant impact of the sup- The questionnaire consisted of 37 paragraphs to
ply chain (inventory, facilities transportation, achieve the objectives of the study. Each question-
sourcing, coordination, and information) naire consists of two parts. The first one repre-
at α ≤ 0.05 on the internal process of the sents the characteristics of the sample according
Ministry of Health pharmacies’ performance to demographic information, and the second one
in Jordan. represents the dimensions of the variables: supply
chain drivers and the performance of the Ministry
H01.3: There is an insignificant impact of supply of Health pharmacies in Jordan.
chain drivers (inventory, facilities transpor-
tation, sourcing, coordination, and informa- 4. RESULTS
tion) at α ≤ 0.05 on the learning and growth
of the Ministry of Health pharmacies’ perfor- To ensure the validity and reliability between the
mance in Jordan. elements and variables of the study, reviewing the
paragraphs of the questionnaire was carried out by
3. METHODOLOGY nine academic arbitrators from Jordanian and Arab
universities in various business administration disci-
The study adopts the descriptive analytical ap- plines, five from Amman Arab University, and four
proach in collecting data and testing hypotheses. from other universities; all the observations and sug-
The population consisted of 560 pharmacies of the gestions of these arbitrators were taken into account.
Jordanian Ministry of Health; the sampling unit According to Sekaran and Bougie (2016), the value of
consisted of 730 pharmacists. Since not all mem- Cronbach’s alpha should be 0.70 for good reliability.
bers of the sampling unit had access to the com- The results shown in Table 1 present acceptable levels.
H01
HEATH PHARMACIES
SUPPLY CHAIN DRIVERS
PERFORMANCE
Facilities
Inventory H01-1
Customer satisfaction
Transportation H01-2
Internal process
Information H01-3
Learning & growth
Sourcing and coordination
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Problems and Perspectives in Management, Volume 21, Issue 2, 2023
Table 1. Cronbach’s alpha coefficients the supply chain drivers interpret 72% of the vari-
Cronbach’s alpha ance, and other factors explain the rest.
Variable Paragraphs
coefficient (α)
Table 4. Testing H01: ANOVA
Independent variable:
37 479.0
Supply chain drivers
M S. of. Sq DF M . Sq F Sig.
Facilities 7 488.0
Inventory 5 238.0 Regression 106.005 1 106.005 643.630 .000
Transport 7 898.0 Residual 41.175 250 .165
Information 7 319.0
Total 147.179 251
Sources 6 598.0
Coordination 5 938.0
Dependent variable: Table 4 indicates that value F is 643.630, with a sig-
Performance of the
Ministry of Health
18 439.0 nificance value of 0.000. Thus, the alternative hy-
pharmacies in Jordan pothesis (H01) is accepted, which means that the
Customers satisfaction 6 258.0 level of supply chain drivers affects the Ministry of
Internal operations 6 397.0 Health pharmacies’ performance in Jordan.
Learning and growth 6 778.0
Table 5. Multiple regression analysis of the
impact of supply chain drivers on the Ministry of
According to Table 1, all the values of Cronbach’s Health pharmacies’ performance
alpha internal consistency coefficient for the di-
mensions and variables of the study were great- Unst. Cof St. Cof
er than 0.70. Therefore, the study tool had a high R.Cof St. T Sig
B Beta.
stability coefficient, which confirms the validi- Error
ty of its use to achieve the objectives of the study. (Constant) .917 .113 8.093 .000
Cronbach’s alpha values for the dimensions of the Ministry of Heath
independent variable ranged between 0.832-0.913, pharmacy’s .789 .031 .849 25.370 .000
while it was 0.974 for the independent variable as performance
a whole. Cronbach’s alpha coefficient for the de- Note: * sig. (α = 0.05).
pendent variable was 0.934, and the Cronbach’s
alpha values for the dimensions of the dependent Table 5 shows that the supply chain drivers signifi-
variable ranged between 0.793-0.877. cantly impact the Ministry of Health pharmacies’
performance. Beta-value is 0.849, T-value is 25.370,
Table 2. Variance inflation factor and toluene
dimensions at a significance value of 0.000, so the supply chain
drivers level has an impact on the Ministry of
Variants VIF Tolerance
Health pharmacies’ performance. The estimated
Facilities 3.231 .309
Inventory 3.526 .284
regression equation means that any one-unit in-
Transportation 5.394 .185 crease in the level of supply chain drivers will lead
Information 5.376 .186 to an increase in the Ministry of Heath pharma-
Sources 5.524 .181 cies performance by 0.789.
Coordination 5.188 .193
Table 6. Summary of the simple linear regression
variance analysis for H01.1
Table 2 shows that the VIF variance inflation coef-
ficient test for all variables ranges between 3.231- M R R2 Adjusted R 2 St. E
5.394, less than 10, and the tolerance test ranges
1 0.742 0.550 0.539 0.52462
between 0.181-0.309.
Table 3. Testing H01
Table 6 shows the correlation coefficient (R) val-
M R R2 Adjusted R 2 SE
ue between supply chain drivers’ dimensions and
1 0.849 0.720 0.719 0.4058
customer satisfaction is 74.2%, and the R 2 value
is 55%. Hence, the supply chain drivers interpret
Table 3 shows that the correlation coefficient (R) is 55% of the variance of the customer satisfaction
84.9%, and the R 2 value is 72%, which means that dimension.
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Problems and Perspectives in Management, Volume 21, Issue 2, 2023
Table 7. Testing H01.1: ANOVA Table 9. Summary of the simple linear regression
variance analysis for H01.2
M S.of .sq DF M. S F Sig.
Regression 82.468 6 13.745 49.940 .000 M R R2 Adjusted R 2 St. E
Residual 67.430 245 .275 1 .8200 .6720 .6640 .454360
Total 149.898 251
Table 9 shows that the R value between supply
Table 7 shows that the F-value is 49.940, at a signif- chain drivers and the internal process is 82%, and
icant value of 0.000. Therefore, the null hypoth- the R 2 value is 67.2%, which means that the supply
esis (H01.1) is accepted. It means that the level of chain drivers interpret 67.2% of the variance of the
supply chain drivers has an impact on custom- internal process.
er satisfaction of Ministry of Health pharmacies’
Table 10. Testing H01.2: ANOVA
performance in Jordan.
Table 8. Multiple regression of supply chain drivers’ M S. of. Sq DF M . Sq F Sig.
Regression 103.773 6 17.295 83.779 .000
impact on customer satisfaction of Ministry of Residual 50.578 245 .206
Health pharmacies’ performance (H01.1) Total 154.351 251
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Problems and Perspectives in Management, Volume 21, Issue 2, 2023
any one-unit increase in coordination will lead to The prediction equation is as follows: Learning
an increase in internal processes by 0.298. and growth = 0.312+ 0.171*facilities + 0.221* in-
ventory + 0.281*sourcing + 0.291*coordination.
Table 12. Summary of the simple linear
regression variance for H01.3 The estimated regression equation means that any
increase of one unit in inventory will increase the
M R R2 Adjusted R 2 St. E learning and growth dimension by 0.171. In con-
1 .821 0.674 .666 .54785 trast, any one-unit increase in inventory, sourcing,
and coordination will increase the learning and
Table 12 shows that the R is 82.1%, and the R 2 value growth dimension by 0.221, 0.281, and 0.291.
is 67.4%, meaning that facilities, inventory, trans-
portation, information, sourcing, and coordina-
tion interpret 67.4% of the learning and growth 5. DISCUSSION
dimension variance.
The results showed that the general arithmetic
Table 13. Testing H01.3: ANOVA
means of the supply chain drives in the Jordanian
M S.of. sq DF M. sq F Sig. Ministry of Health pharmacies was 3.55, which
Regression 152.216 6 25.369 84.525 .000 is an average level. This result is due to the inter-
Residual 73.534 245 .300 est of the supplying party and its awareness of
Total 225.750 251 the importance of providing the necessary infra-
structure for the integration of supply chains and
Table 13 shows that F-value is 84.525, at a signifi- linking the various parties with each other. In
cant value of 0.000, so the alternative hypothesis addition, they are eager to have appropriate facil-
(H01.3) is accepted. It means that the level of the ities equipped according to the instructions and
supply chain has an impact on the learning and principles to preserve the pharmaceutical prod-
growth of the Ministry of Health pharmacies’ per- ucts and organize the distribution and delivery
formance in Jordan. places. It is attributed to the continuous control
of the supplying party on its inventory of various
Table 14. Multiple regression of supply chain
drivers’ impact on the learning and growth of the materials, covering the needs of pharmacies, deal-
Ministry of Health pharmacies’ performance ing well with drug needs and inventory, and pro-
viding pharmacies’ needs promptly. This result is
Sta. consistent with Manaseer (2017), who showed that
Unsta. Coef
Regr. Coef Coef T Sig Jordanian companies for oil and fuel services ap-
B St. Error Beta. ply supply chain practices on average.
(Constant) .312 .169 1.851 .065
Facilities .171 .078 .144 2.194 .029
The results revealed no statistically significant im-
Inventory .221 .070 .217 3.172 .002
Transport .158 .090 .148
pact of the two dimensions (transportation and
1.744 .082
Information .122 .083 .124 sources) on the performance of pharmacies. The
1.468 .143
Sourcing .281 .085 .284 appropriate transportation of the product, there-
3.310 .001
Coordination .291 .089 .273 fore, does not directly affect the performance of
3.290 .001
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Problems and Perspectives in Management, Volume 21, Issue 2, 2023
performance of pharmacies. Various information on the inventory level, and coordinating between
and opening formal and direct communication the orders, warehouses, delivery, and receiving de-
channels contribute to securing these needs and partments. This result is consistent with the find-
meeting them promptly and without delay. This ings of Rana and Osman (2018), who indicated a
will create a feeling among the customers that role for inventory management and coordination
the pharmacies have met their requirements. This in the performance of the retail supply chain.
result is consistent with Xiong et al. (2022), who
indicated that limited inventory capacity has The paper also showed that transport and infor-
unexpected benefits through data-driven deci- mation affect the learning and growth of the phar-
sion-making. Moreover, Viet et al. (2018) found macies’ performance of the Ministry of Health in
the existence of the value of information in vari- Jordan. This does not depend directly on transfer
ous supply chain decisions. and information on the supplying party, as much
as it relies on serious thinking by the pharmacy
The findings showed a statistically significant ef- management in developing employees who are
fect for the two dimensions (inventory and coor- considered the basic building block for improving
dination) on the internal operations of the phar- the performance of pharmacies. This result is in-
macies’ performance. Securing the missing ones consistent with the findings of Chopra and Gupta
and avoiding any delay will contribute positively (2020), who indicated that information influences
to conducting internal operations, accessing data learning and growth.
CONCLUSION
The purpose of this study is to examine the impact of supply chain drivers (facilities, inventory, infor-
mation, sources, and coordination) on pharmacy performance in the Jordanian Ministry of Health. The
study data were collected from pharmacists working in the pharmacies of the Jordanian Ministry of
Health. The study proposed a research model developed based on prior literature, and the regression
analysis was administered to test hypotheses.
The regression results showed a significant impact of supply chain drivers (facilities, inventory, transpor-
tation, information, sourcing, and coordination) on the Ministry of Health pharmacies’ performance
(customer satisfaction, internal process, and learning and growth) in Jordan. Thus, the management of
health pharmacies should be directing supply departments to adopt modern mechanisms to monitor all
operations (requesting inventory, managing it, and granting permits for imports).
The study adds value to the literature by examining the impact of supply chain drivers on pharmacy
performance in the Jordanian Ministry of Health. The study finds that the independent variable’s di-
mension (transport) impacts customer satisfaction, transportation and information have no impact on
learning and growth, and facilities, transport, information, and source have no impact on internal pro-
cesses. The study also found that the dimensions of transportation, information, and facilities have the
most negligible impact on pharmacy performance in the Jordanian Ministry of Health because these
pharmacies belong to the public sector and do not affect the cost.
AUTHOR CONTRIBUTIONS
Conceptualization: Omar Halassa.
Data curation: Omar Halassa.
Formal analysis: Omar Halassa.
Investigation: Omar Halassa, Rashad Al Saed.
Methodology: Rashad Al Saed.
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Problems and Perspectives in Management, Volume 21, Issue 2, 2023
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