BACKGROUND: Information is crucial in enhancing partnership, reducing uncertainties and inventory costs, improving order fulfillment, and increasing customer satisfaction. However, there is a scantiness of studies on how information sharing affects pharmaceutical supply chain practices and performance. Hence, this study aimed to examine the mediating effect of information sharing between supply chain integration and operational performance.
METHOD: We conducted an analytical cross-sectional study complemented with a qualitative assessment between May and July 2021. The study populations (n = 343) were selected employees working at the Ethiopian pharmaceutical supply agency's head office and selected hubs. The quantitative data were collected by self-administered five-point Likert-scale questions and analyzed using SPSS-version 23. The mediation effect was determined using sequential linear regression based on the Baron and Kenny stepwise approach. A 95% confidence interval and a p-value less than 5% were used to determine statistical significance. We gathered the qualitative data through in-depth face-to-face interviews with nine key informants and analyzed them using a thematic analysis technique.
RESULTS: Among 320 completed questionnaires returned (with a response rate of 93%), we used 288 in the analysis. Of the respondents, 97 (33.7%) disagreed that information sharing with the agency is simplified. One hundred seventeen (40.6%) disagreed that customers share information via an online system. Most respondents (76.4%) agreed that internal integration in the agency reduced total order time. Information sharing (β = 0.270, p < 0.001), customer integration (β = 0.265, p < 0.001), and internal integration (β = 0.151, p < 0.001) were predictor variables that had a direct positive effect on operational performance. Information sharing posited a partially mediating role between customer integration and operational performance with β = 0.136 at p < 0.001. Data quality problems, human-resource-related issues, and natural and human-made calamities were the major challenges affecting information sharing and the overall supply chain practices.
CONCLUSION: Customer integration, internal integration, and information sharing influenced operational performance positively. Although coordination among the units in the agency is reasonable, there was a lack of communication and quick response from partners, as well as data quality problems and the absence of an automation system in most health facilities. The key informants suggested end-to-end supply systems connections with partners through Enterprise Resource Planning and other means.
