Innovations in Inventory Management to Improve the Profitability of Local SMEs

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In Bagua, many of these businesses lack digital systems for real-time tracking, impairing decision-making and reducing profitability. The absence of clear safety-stock policies and strategic replenishment guidelines often leads to emergency purchases at high prices and imbalances between excess and shortage of goods. Method This study employed a quantitative, descriptive-explanatory design. A convenience sample of 83 MSEs in Bagua yielded 200 valid responses from key participants (managers, warehouse staff, accountants, and assistants). A 21-item Likert questionnaire, validated by experts, captured perceptions of inventory control, valuation methods, record-keeping, and measurement. Data were analysed in SPSS v27 using descriptive statistics and multiple linear regression to assess the impact of these inventory practices on profitability indicators (ROA, gross margin, and ROE). Results Descriptive analysis revealed moderate performance across all four inventory dimensions, with mean scores ranging from 2.37 to 2.62. The regression model explained 40.2 % of the variance in profitability (R2 = 0.402; p < 0.001). Inventory measurement emerged as the strongest predictor (β = 0.383; p = 0.001), followed by inventory control (β = 0.257; p = 0.013). Conclusion Neither valuation methods nor record-keeping showed statistically significant effects. Accurate inventory measurement and control are key drivers of profitability for Bagua’s MSEs. Adoption of real-time tracking technologies and revision of valuation and recording practices are recommended to enhance financial performance. Given the study’s cross-sectional design and geographic focus, future research should employ longitudinal approaches and comparative analyses across different regions and sectors. 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F1000Research 2025, 14 :853 ( https://doi.org/10.12688/f1000research.168900.1 ) NOTE: If applicable, it is important to ensure the information in square brackets after the title is included in all citations of this article. Close Copy Citation Details Export Export Citation Sciwheel EndNote Ref. Manager Bibtex ProCite Sente EXPORT Select a format first Track Share ▬ ✚ Research Article Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] Víctor Hugo Puican Rodríguez https://orcid.org/0000-0001-7402-9576 1 , RITA DE JESUS TORO LÓPEZ 2 , Waldemar Ramón García Vera 3 Víctor Hugo Puican Rodríguez https://orcid.org/0000-0001-7402-9576 1 , RITA DE JESUS TORO LÓPEZ 2 , Waldemar Ramón García Vera 3 PUBLISHED 02 Sep 2025 Author details Author details 1 Universidad Cesar Vallejo, Trujillo, La Libertad, Peru 2 Universidad Cesar Vallejo, Trujillo, La Libertad, Peru 3 Universidad Cesar Vallejo, Trujillo, La Libertad, Peru Víctor Hugo Puican Rodríguez Roles: Conceptualization, Data Curation, Formal Analysis, Investigation, Writing – Original Draft Preparation RITA DE JESUS TORO LÓPEZ Roles: Methodology, Software, Supervision, Validation Waldemar Ramón García Vera Roles: Data Curation, Project Administration, Visualization, Writing – Original Draft Preparation, Writing – Review & Editing OPEN PEER REVIEW DETAILS REVIEWER STATUS Abstract Background Efficient inventory management is critical for the financial and operational sustainability of micro and small enterprises (MSEs) in Peru, particularly in the wake of the COVID-19 crisis. In Bagua, many of these businesses lack digital systems for real-time tracking, impairing decision-making and reducing profitability. The absence of clear safety-stock policies and strategic replenishment guidelines often leads to emergency purchases at high prices and imbalances between excess and shortage of goods. Method This study employed a quantitative, descriptive-explanatory design. A convenience sample of 83 MSEs in Bagua yielded 200 valid responses from key participants (managers, warehouse staff, accountants, and assistants). A 21-item Likert questionnaire, validated by experts, captured perceptions of inventory control, valuation methods, record-keeping, and measurement. Data were analysed in SPSS v27 using descriptive statistics and multiple linear regression to assess the impact of these inventory practices on profitability indicators (ROA, gross margin, and ROE). Results Descriptive analysis revealed moderate performance across all four inventory dimensions, with mean scores ranging from 2.37 to 2.62. The regression model explained 40.2 % of the variance in profitability (R 2 = 0.402; p < 0.001). Inventory measurement emerged as the strongest predictor (β = 0.383; p = 0.001), followed by inventory control (β = 0.257; p = 0.013). Conclusion Neither valuation methods nor record-keeping showed statistically significant effects. Accurate inventory measurement and control are key drivers of profitability for Bagua’s MSEs. Adoption of real-time tracking technologies and revision of valuation and recording practices are recommended to enhance financial performance. Given the study’s cross-sectional design and geographic focus, future research should employ longitudinal approaches and comparative analyses across different regions and sectors. READ ALL READ LESS Keywords Inventory, profitability, control, measurement, financial efficiency. Corresponding Author(s) Víctor Hugo Puican Rodríguez ( [email protected] ) Close Corresponding author: Víctor Hugo Puican Rodríguez Competing interests: No competing interests were disclosed. Grant information: The author(s) declared that no grants were involved in supporting this work. Copyright: © 2025 Puican Rodríguez VH et al . This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. How to cite: Puican Rodríguez VH, TORO LÓPEZ RDJ and García Vera WR. Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.12688/f1000research.168900.1 ) First published: 02 Sep 2025, 14 :853 ( https://doi.org/10.12688/f1000research.168900.1 ) Latest published: 29 Nov 2025, 14 :853 ( https://doi.org/10.12688/f1000research.168900.3 )  There is a newer version of this article available. Suppress this message for one day. Introduction Efficient inventory management has become an essential practice for ensuring financial and operational sustainability in micro and small enterprises (MSEs) in Peru, particularly after the crisis caused by the COVID-19 pandemic; the implementation of effective strategies for inventory control (IC) and measurement can generate tangible monetary benefits by reducing losses associated with expiration, deterioration, or theft of goods; however, a significant number of these companies lack digitalized systems that allow real-time inventory tracking, directly affecting decision-making and reducing business profitability (P) ( Vahdani & Sazvar, 2022 ; Wellner & Lakotta, 2020) ; MSEs need to be flexible with their inventory management because demand changes quickly and is sensitive to price; however, many of them have trouble because their managers aren’t very experienced and their shareholders aren’t very committed; this situation hurts key performance indicators like Return on Assets (ROA) and Return on Equity (ROE) ( Li & Mizuno, 2022 ); furthermore, the lack of safety stock policies leads to rushed acquisitions at high prices, increasing the final product cost and significantly reducing sales ( Johnston et al., 2022 ; Rueda et al., 2022 ; Singh et al., 2022 ). In Bagua, a city representative of the reality faced by many Peruvian MSEs, inventory management encounters particular challenges, such as product shortages or excesses; companies use tools like the “Q-mode” method, which constantly monitors inventory levels, although it does not provide clear guidelines on the optimal quantity and timing for restocking goods, requiring more strategic relationships with suppliers ( Carazas et al., 2019 ); additionally, deficiencies in planning hinder the ability to effectively forecast demand, directly impacting operational expenses, delivery times, and perceived quality key factors determining business profitability ( Jurado et al., 2021 ; Wilson et al., 2022 ; Wilson, 2023 ). This research aims to determine the impact that inventory control and measurement have on the profitability of micro, small, and medium-sized enterprises (MSEs) in Bagua, Peru; the primary objective of this study is to determine how various methods of valuing inventory (including first-in, first-out (FIFO), last-in, first-out (LIFO), and average cost), as well as maintaining accurate records of inventory and maintaining strict control, have an effect on important measures of profitability such as return on assets (ROA), gross margin (GM), and return on equity (ROE). The objective was to explore the impact of inventory control, inventory valuation methods, inventory control recording, and inventory measurement on the profitability of MSEs in Bagua, Peru. To describe the multidimensional statistical characterization of internal control and its impact on key profitability indicators of MSEs in Bagua, Peru. The most important thing this paper does is show how inventory management directly affects a business’s ability to make money in a certain area and type of business; it also adds to the body of knowledge about how to run a small business’s finances and operations better, and it gives them suggestions on how to make their results much better. Literature review Several studies have highlighted the significance of effective inventory management in significantly increasing company profitability, especially for SMEs; effective inventory management significantly affects financial performance, operational profit margin, and net income in various production sectors; the key is to maintain an appropriate inventory level to prevent shortages and overstocking ( Ahmad et al., 2022 ; Anisere & Bodunde, 2021 ; Sultan, 2021 ; Gamariel & Annet, 2021 ; Golas, 2020 ). Mathematically simple models such as the Economic Order Quantity (EOQ) are frequently employed to determine optimal stock levels and reduce operational costs associated with purchasing, warehousing, and stockouts ( Çalışkan, 2021 ; Condeixa et al., 2020 ; Nobil et al., 2023 ; Ayatollahi & Jafari, 2022 ; Liao et al., 2019 ); on the other hand, the Wilson model takes into account volume discounts and variable storage costs, adding a temporal dimension, which makes it more flexible in response to changing and unpredictable demand environments ( Samadi et al., 2020 ; Kazemi et al., 2018 ; Wray et al., 2023 ; Shepherd et al., 2023 ; Liu et al., 2020 ). Despite queuing theory’s original intent, researchers have found ways to apply it to inventory management. This has led to improvements in replenishment times and shorter lead times ( Ahmed et al., 2019 ; Wu et al., 2023 ; Petrovic et al., 2023 ; Ala et al., 2023 ; Qandeel et al., 2023 ); integrated inventory management, which includes accurate valuation methods, comprehensive controls, and regular measurements using key performance indicators (KPIs), improves operational visibility, optimizes space utilization, and reduces costs ( Chunxia & Shunfu, 2018 ; Chen & Kong, 2019 ); finally, from a business lifecycle and Porter’s five competitive forces point of view, MSEs can clearly see their competitive landscape and change their inventory strategies to make the most money, which gives them advantages like being different and running their businesses more efficiently ( Pizzan et al., 2022 ; Jerónimo et al., 2022 ; Nirmala et al., 2022 ; Becerra et al., 2022 ); similarly, the sustainable growth model provides a framework for balancing growth and profitability, making decisions that ensure long-term financial stability ( Epizitone & Nxumalo, 2021 ; Drakaki & Tzionas, 2021 ; Nozari et al., 2022 ; Gammelli et al., 2022 ; Preil & Krapp, 2022 ; Walt & Bean, 2022 ; Moncayo & Tarrillo, 2020 ; Zhou, 2023 ; Jiang et al., 2022 ; Khuong & Anh, 2023 ; Dias et al., 2023 ; Baxter, 2019 ; Maartens & Hutmacher, 2022 ; Fernandez et al., 2020 ; Chien-Chiang et al., 2023 ; Henderson & Loreau, 2023 ; Hu & Liu, 2022 ; Harbiankova & Scherbina, 2021 ; Lan et al., 2019 ; Copeland & Weston, 1988 ; Pissan et al., 2022 ; Luna et al., 2021 ; Mundt et al., 2022 ; Merino et al., 2021 ; Setianto et al., 2022 ; Belloso et al., 2021 ; Caiza et al., 2020 ; Moncayo & Tarrillo, 2020 ; Ramón & Bañón, 2022 ; Sánchez et al., 2022 ; Kogan et al., 2022 ; Flores, 2019 ). Methods Focus, design and type of research This research follows a quantitative approach, complemented by a descriptive-explanatory design, directly aligned with the established objectives; the use of this approach allowed for the systematization and statistical analysis of the data, facilitating the generation of generalizable and verifiable results through hypothesis testing; additionally, the study did not limit itself to merely describing phenomena but also measured and analysed the causal relationships between the different variables and dimensions involved; as an applied study, the results provided direct practical implications, offering valuable information for more informed decision-making regarding inventory management and its impact on profitability. Study population and sample A total of 83 MSEs in the city of Bagua were contacted, resulting in the inclusion of 415 individuals, as five key members from each MSE were considered: the manager, warehouse staff, general accountant, and accounting assistants; consent from the managers was sought for participation in the questionnaires designed for the research; these companies represented various sectors, including hardware stores, multipurpose services, and construction companies; using the finite proportion formula, the final sample consisted of 200 individuals, representing 40 microenterprises, with participants holding roles such as managers, warehouse supervisors, accountants, and accounting assistants. Sampling, inclusion and exclusion criteria for the study A non-probability convenience sampling method was employed, selecting the most accessible MSEs for the researchers; inclusion criteria for selecting MSEs included: voluntary participation, registration as active businesses, up-to-date payments in accordance with the Unique The study required MSEs to be registered with the Taxpayer Registry and to have a minimum of five active employees; the study excluded MSEs that failed to meet these criteria or couldn’t commit the required time. Data collection technique and instrument Prior to the final application of the questionnaire, a pilot test was conducted with a reduced sample to evaluate the reliability of the items using Cronbach’s alpha coefficient; this test allowed for the adjustment and refinement of the questionnaire items to ensure they were clear and consistent, ensuring the quality and reliability of the data collected; the second section of the questionnaire explained the scales used for data collection, such as the Likert scale, which offered five response options: “Never” (scored as 1), “Rarely” (2), “Sometimes” (3), “Almost always” (4), and “Always” (5); the third section measured participants’ perceptions and attitudes regarding the central theme of the study through Likert scales and multiple-choice questions; finally, the fourth section included items aimed at gathering information about participants’ experiences and behaviour’s related to the investigated phenomenon. Validation of the instrument and statistical methods used The questionnaire, consisting of 21 items, was previously validated by three experts holding master’s and doctoral degrees; after validation, the collected data were organized in an Excel spreadsheet and transferred to SPSS 27 for statistical analysis; the first two specific objectives were addressed using descriptive statistical methods to examine the levels of the respective variables and dimensions; subsequently, inferential statistical analysis was applied to determine whether the data were parametric or non-parametric, which was crucial for hypothesis testing and analysing the relationships between variables. Results and discussion Results Table 1 shows a summary of the different types of statistics that describe inventory management and how it directly affects key indicators of MSEs’ profitability in Bagua; a moderate performance is observed across all evaluated dimensions, with inventory measurement showing the highest mean value (2.62); this finding suggests that inventory measurement is prioritized by firms in their operational practices; the negative skewness across variables indicates a trend toward higher self-assessed performance ratings, especially in inventory measurement; in important areas related to profitability, the mean scores for all variables fall between 2.37 and 2.62, indicating generally moderate performance; additionally, the median value of 3 further supports the assertion that the majority of firms achieve acceptable performance levels; the negative skewness values, which are most noticeable in Return on Assets (ROA: -0.947) and Gross Margin (-1.007), suggest that while many firms report pretty good performance, a smaller group with worse performance may be changing the overall mean. Table 1. Multidimensional statistical characterization of inventory management and profitability indicators. Variables IC IVM ICR IM P ROA GM ROE N Valid 200 200 200 200 200 200 200 Lost 0 0 0 0 0 0 0 Mean 2,37 2,40 2,50 2,62 2,44 2,49 2,55 2,54 Median 2,00 2,50 3,00 3,00 2,50 3,00 3,00 3,00 Mode 2 3 3 3 3 3 3 3 Standard deviation ,619 ,672 ,665 ,647 ,599 ,665 ,608 ,625 Variance ,384 ,451 ,442 ,419 ,359 ,442 ,369 ,390 Skewness -,434 -,665 -,965 -1,448 -,565 -,947 -1,007 -1,027 Standard ,172 ,172 ,172 ,172 ,172 ,172 ,172 ,172 Kurtosis -,650 -,633 -,228 ,833 -,594 -,257 ,003 ,001 Standard error of Skewness ,342 ,342 ,342 ,342 ,342 ,342 ,342 ,342 Rango 2 2 2 2 2 2 2 2 Minimum 1 1 1 1 1 1 1 1 Maximum 3 3 3 3 3 3 3 3 The variables in Table 2 related to inventory management explain about 39% of the differences in how profitable Bagua’s MSEs are; this is shown by an R-squared value of 0.402 and a significant correlation coefficient (R = 0.634, p < 0.001); inventory measurement emerges as the variable with the most substantial positive effect on profitability, displaying a standardized beta coefficient of 0.383 (p = 0.001); inventory control also significantly contributes to profitability, albeit to a lesser extent (Beta = 0.257, p = 0.013); conversely, inventory valuation methods and control records were statistically insignificant, suggesting limited direct influence on profitability within this context. Table 2. Regression model summary, ANOVA, and standardized coefficients. Variables Summary of the model ANOVA R 0.634 R 2 0.402 Adjusted R 2 0.390 Standard Error of Estimation 0.468 Change in F 32.805 32.805 Sig Change in F 0.001 0.001 Durbin-Watson 1.525 Regression 28.718 Residual 42.677 Coefficients Standardised coefficients Beta T/Sig. IC 0.257 2.497/0.013 IVM 0.053 0.781/0.436 ICR 0.037 0.436/0.663 IM 0.383 5.036/0.001 Discussion The study shows that residuals are close to a normal distribution, which proves a key regression assumption and shows that the regression model is robust and reliable; normality in residuals ensures the precision of estimates and strengthens the credibility of findings, particularly regarding inventory management practices and their significant relationship to profitability; the regression results underscore inventory measurement as the predominant factor influencing profitability, with a standardized coefficient Beta of 0.383; this aligns with extant literature highlighting effective inventory measurement as critical for profitability enhancement, notably within manufacturing and similar sectors Ahmad et al. (2022) and Gamariel and Annet (2021) ; additionally, inventory control also demonstrated significance (Beta = 0.257), corroborating findings from previous studies ( Sultan, 2021 ) the fact that inventory valuation methods and control records don’t have any statistical significance shows that these practices need to be carefully looked at again and maybe changed to fit Bagua’s business environment. The empirical results underscore that inventory management variables, particularly inventory measurement, have a moderate yet meaningful impact on the profitability of Bagua’s MSEs; these findings confirm the critical role inventory measurement and control play in enhancing operational efficiency and financial performance. This research aligns with prior empirical investigations that report a positive association between efficient inventory management and enhanced profitability Nobil et al. (2023) and Wray et al. (2023) ; such alignment reinforces the notion that improved inventory practices consistently yield measurable financial benefits across diverse economic sectors and regions. Implementing precise inventory measurement practices could significantly enhance resource optimization and profitability within Bagua’s MSEs; firms are encouraged to integrate advanced inventory tracking technologies to streamline processes, reduce operational expenses, and improve competitive positioning; additionally, revisiting current inventory valuation methods may further improve accuracy and profitability outcomes. This research is constrained by its cross-sectional design and geographically focused sample, potentially limiting the generalizability of findings; furthermore, the static nature of cross-sectional analysis precludes exploration of longitudinal causal relationships and profitability trends over time. Future research should adopt longitudinal designs to investigate the sustained effects of inventory management practices on MSE profitability over extended periods; comparative analyses across different regions or industrial sectors could further enrich understanding and yield more profound insights into best practices and their adaptability within varied business environments. Conclusions This study confirms that efficient inventory management, particularly in the areas of measurement and control, is a key factor in enhancing the profitability of MSEs in Bagua; by implementing a more precise inventory control system, companies can optimize their processes, reduce costs, and improve resource allocation, leading to greater organizational and financial efficiency; the results obtained align with previous research, which also emphasizes the importance of accurate inventory measurement as a driver of profitability for small and medium-sized enterprises; however, significant gaps remain, particularly in the areas of inventory valuation methods and record-keeping, which require specific adjustments and adaptations to maximize their impact; addressing these challenges through strategic investments in staff training, the implementation of advanced technologies, and improvements in inventory management practices will enable MSEs to optimize their performance and compete more effectively in the market; in this way, businesses in Bagua and similar regions can accelerate their transition to more efficient, profitable, and competitive business management. Ethics and consent This research was approved by the Ethics Committee of César Vallejo University (Resolution No. 447-2023-VI-UCV of the Vice-Rectorate for Research), in accordance with the principles of the Declaration of Helsinki. All procedures complied with national and international ethical standards applicable to research involving human participants. Written informed consent was obtained from all participants before administering the questionnaire. All respondents were over 18 years of age and were fully informed about the objectives of the study, the voluntary nature of their participation, the confidentiality of their data, and the exclusive use of the information for academic and scientific purposes. Data availability All data supporting the results of this study including the values underlying the reported means, standard deviations, and other measures; the values used to generate the figures; and the data points extracted from images for analysis are available in the Data availability the Victor Puican repository. Excel data base Process identifier https://doi.org/10.23728/B2SHARE.C7BA1BDAF7B8423A8D0E467A446EB0F9 ( Rodriguez et al., 2025 ). Additional materials and data The additional data used in this study, including the complete questionnaire, instrument application guide, and supplementary tables of statistical results, are publicly available in the same data repository. Process identifier https://doi.org/10.23728/B2SHARE.C7BA1BDAF7B8423A8D0E467A446EB0F9 ( Rodriguez et al., 2025 ). These materials allow for open replication and review of the study. The full dataset is accessible without restrictions or embargoes under a CC-BY 4.0 license. 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Publisher Full Text Comments on this article Comments (0) Version 3 VERSION 3 PUBLISHED 02 Sep 2025 ADD YOUR COMMENT Comment Author details Author details 1 Universidad Cesar Vallejo, Trujillo, La Libertad, Peru 2 Universidad Cesar Vallejo, Trujillo, La Libertad, Peru 3 Universidad Cesar Vallejo, Trujillo, La Libertad, Peru Víctor Hugo Puican Rodríguez Roles: Conceptualization, Data Curation, Formal Analysis, Investigation, Writing – Original Draft Preparation RITA DE JESUS TORO LÓPEZ Roles: Methodology, Software, Supervision, Validation Waldemar Ramón García Vera Roles: Data Curation, Project Administration, Visualization, Writing – Original Draft Preparation, Writing – Review & Editing Competing interests No competing interests were disclosed. Grant information The author(s) declared that no grants were involved in supporting this work. Article Versions (3) version 3 Revised Published: 29 Nov 2025, 14:853 https://doi.org/10.12688/f1000research.168900.3 version 2 Revised Published: 07 Nov 2025, 14:853 https://doi.org/10.12688/f1000research.168900.2 version 1 Published: 02 Sep 2025, 14:853 https://doi.org/10.12688/f1000research.168900.1 Copyright © 2025 Puican Rodríguez VH et al . This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Download Export To Sciwheel Bibtex EndNote ProCite Ref. Manager (RIS) Sente metrics Views Downloads F1000Research - - PubMed Central info_outline Data from PMC are received and updated monthly. - - Citations open_in_new 0 open_in_new 0 open_in_new SEE MORE DETAILS CITE how to cite this article Puican Rodríguez VH, TORO LÓPEZ RDJ and García Vera WR. Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.12688/f1000research.168900.1 ) NOTE: If applicable, it is important to ensure the information in square brackets after the title is included in all citations of this article. COPY CITATION DETAILS track receive updates on this article Track an article to receive email alerts on any updates to this article. TRACK THIS ARTICLE Share Open Peer Review Current Reviewer Status: ? Key to Reviewer Statuses VIEW HIDE Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions Version 1 VERSION 1 PUBLISHED 02 Sep 2025 Views 0 Cite How to cite this report: Quiroz-Flores JC. Reviewer Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.186120.r411543 ) The direct URL for this report is: https://f1000research.com/articles/14-853/v1#referee-response-411543 NOTE: it is important to ensure the information in square brackets after the title is included in this citation. Close Copy Citation Details Reviewer Report 16 Sep 2025 Juan Carlos Quiroz-Flores , Carrera de Ingeniería Industrial, Universidad de Lima, Santiago de Surco, Lima, Peru Approved with Reservations VIEWS 0 https://doi.org/10.5256/f1000research.186120.r411543 The manuscript addresses a relevant and timely problem in the field of industrial engineering and presents findings that could be of interest to both academics and practitioners. Nevertheless, there are aspects that limit its current scientific soundness. First, the presentation ... Continue reading READ ALL The manuscript addresses a relevant and timely problem in the field of industrial engineering and presents findings that could be of interest to both academics and practitioners. Nevertheless, there are aspects that limit its current scientific soundness. First, the presentation of the work is only partly clear. Some sections lack precise definitions and the review of current literature is limited; expanding and updating the state of the art with more recent high-impact references would help to strengthen the context and highlight the research gap. Regarding the study design, it is partly appropriate but not fully explained. The methodological section does not provide sufficient detail on sampling criteria, operationalization of variables, or the validation of instruments, which makes replication by others difficult. Although the statistical analysis is included, its justification and interpretation are only partly appropriate; the authors should reinforce the robustness of the chosen techniques and explain why they are suitable for the research objectives. An important strength of the article is the open availability of all underlying data and supplementary materials in a public repository under a CC-BY 4.0 license. This commitment to transparency significantly increases the reproducibility and value of the work, enabling replication and secondary analysis by other researchers. However, even with data availability, the methods and analytical steps should be described more systematically in the manuscript itself to ensure clarity and replicability without external consultation. Finally, the conclusions are only partly supported by the results. While they are aligned with the stated objectives, in some cases they are presented with greater breadth than the evidence can fully sustain. A more cautious and data-driven interpretation is recommended. In summary, the article makes a potentially valuable contribution but requires improvements to achieve the necessary level of scientific rigor. Specifically, the authors should: (1) strengthen and update the literature review; (2) provide a more detailed methodological description; (3) improve the justification and clarity of the statistical analysis; and (4) refine the conclusions so that they are fully supported by the presented evidence. Addressing these points would considerably enhance the impact and credibility of the study. Is the work clearly and accurately presented and does it cite the current literature? Partly Is the study design appropriate and is the work technically sound? Partly Are sufficient details of methods and analysis provided to allow replication by others? No If applicable, is the statistical analysis and its interpretation appropriate? Partly Are all the source data underlying the results available to ensure full reproducibility? Yes Are the conclusions drawn adequately supported by the results? Partly Competing Interests: No competing interests were disclosed. Reviewer Expertise: Industrial Engineering, Process Improvement, Lean Manufacturing, Supply Chain Management, Six Sigma, Digital Transformation, Industry 4.0, Machine Learning. I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above. Close READ LESS CITE CITE HOW TO CITE THIS REPORT Quiroz-Flores JC. Reviewer Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.186120.r411543 ) The direct URL for this report is: https://f1000research.com/articles/14-853/v1#referee-response-411543 NOTE: it is important to ensure the information in square brackets after the title is included in all citations of this article. COPY CITATION DETAILS Report a concern Author Response 07 Nov 2025 VICTOR HUGO PUICAN RODRIGUEZ , Universidad Cesar Vallejo, Trujillo, Peru 07 Nov 2025 Author Response Greetings, esteemed reviewer. Thank you very much for your comments on our work, which have enabled us to improve our research. All comments have been addressed. With gratitude, ... Continue reading Greetings, esteemed reviewer. Thank you very much for your comments on our work, which have enabled us to improve our research. All comments have been addressed. With gratitude, Dr Victor Puican Greetings, esteemed reviewer. Thank you very much for your comments on our work, which have enabled us to improve our research. All comments have been addressed. With gratitude, Dr Victor Puican Competing Interests: No hay conflicto de intereses. Close Report a concern Respond or Comment COMMENTS ON THIS REPORT Author Response 07 Nov 2025 VICTOR HUGO PUICAN RODRIGUEZ , Universidad Cesar Vallejo, Trujillo, Peru 07 Nov 2025 Author Response Greetings, esteemed reviewer. Thank you very much for your comments on our work, which have enabled us to improve our research. All comments have been addressed. With gratitude, ... Continue reading Greetings, esteemed reviewer. Thank you very much for your comments on our work, which have enabled us to improve our research. All comments have been addressed. With gratitude, Dr Victor Puican Greetings, esteemed reviewer. Thank you very much for your comments on our work, which have enabled us to improve our research. All comments have been addressed. With gratitude, Dr Victor Puican Competing Interests: No hay conflicto de intereses. Close Report a concern COMMENT ON THIS REPORT Views 0 Cite How to cite this report: Yosephine VS. Reviewer Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.186120.r411548 ) The direct URL for this report is: https://f1000research.com/articles/14-853/v1#referee-response-411548 NOTE: it is important to ensure the information in square brackets after the title is included in this citation. Close Copy Citation Details Reviewer Report 16 Sep 2025 Vina Sari Yosephine , Universitas Pembangunan Nasional Veteran Jakarta, Jakarta, Special Capital Region of Jakarta, Indonesia Not Approved VIEWS 0 https://doi.org/10.5256/f1000research.186120.r411548 General Summary The article, “Innovations in Inventory Management to Improve the Profitability of Local SMEs,” investigates the impact of inventory practices (control, valuation, record-keeping, and measurement) on the profitability of micro and small enterprises (MSEs) in Bagua, ... Continue reading READ ALL General Summary The article, “Innovations in Inventory Management to Improve the Profitability of Local SMEs,” investigates the impact of inventory practices (control, valuation, record-keeping, and measurement) on the profitability of micro and small enterprises (MSEs) in Bagua, Peru. Using a quantitative, descriptive-explanatory design, the authors collected 200 valid responses from 83 MSEs via a 21-item Likert-scale questionnaire. Data were analyzed using descriptive statistics and multiple regression in SPSS v27, focusing on profitability indicators such as ROA, gross margin, and ROE. The results suggest that inventory measurement and inventory control significantly influence profitability, whereas valuation methods and record-keeping do not show significant effects. The authors conclude that improving measurement and control practices, along with adoption of digital systems, could enhance the financial performance of local SMEs. 1. Clarity The article is generally well written and follows a standard IMRAD structure. However, the writing style is sometimes descriptive and informal, especially in the introduction and discussion (“the most important thing this paper does…”). The literature cited is up to date (2020–2023) and relevant, but the review is presented more as a list of studies rather than a critical synthesis. There is no clear theoretical framework or conceptual model guiding the study. Suggestion: Revise the Introduction and Literature Review to critically synthesize prior work rather than listing references. Clearly identify the research gap and justify why Bagua, Peru, provides a meaningful contribution beyond confirming prior findings. Introduce or align with an established theoretical framework (e.g., Resource-Based View, Dynamic Capabilities, or Contingency Theory) to strengthen novelty. 2. Design The quantitative survey approach is acceptable, but the use of convenience sampling weakens generalizability. The paper labels the design as “descriptive-explanatory” but does not justify why this is the most suitable design. Only four inventory practice dimensions are considered without clear rationale or theoretical justification. Suggestion : Provide a stronger justification for the study design and selection of variables. Why were control, valuation, record-keeping, and measurement prioritized? Consider addressing common method bias and response bias, which are common risks in survey-based studies. Discuss limitations of convenience sampling more explicitly and propose how future research can address this. 3. Methodology Some methodological details are included (e.g., pilot test, Cronbach’s alpha, validation by experts), but more transparency is needed. Tables are incomplete (Table 1 shows only mean values; regression results are summarized but lack full coefficients, p-values, and confidence intervals). Suggestion Expand the Methods section with more detail on: Questionnaire design and item sources, reliability and validity results (report Cronbach’s alpha values, factor analysis results if available)., sampling logic (why 83 MSEs, how sectors were chosen). 4. Interpretation of Statistical Analysis The regression model is appropriate at a basic level and explains 40% of variance in profitability. However, the analysis is limited to simple regression. No robustness checks, mediation/moderation analysis, or multivariate modeling were attempted. Interpretation of results is shallow—conclusions mainly restate statistical findings without linking back to theory. Suggestion: Report full regression output, including coefficients, SE, t-values, and significance. Consider using more advanced methods (e.g., SEM-PLS or CFA) to validate the measurement model. Deepen the discussion by linking findings to prior studies and theoretical implications, not only descriptive interpretations. 5. ConclusionThe main conclusions (measurement and control matter more than valuation and record-keeping) are supported by the data. However, broader claims about competitiveness and profitability improvement are overstated given the narrow sample and cross-sectional design. Suggestion : Revise the Conclusion to better align with study limitations. Emphasize that findings are context-specific (Bagua SMEs) and cannot be generalized without caution. Add practical managerial implication s for SME managers (e.g., training, adoption of digital systems). Minor Improvements : Revise language for conciseness and academic tone. Improve tables and figures (add clarity, labels, descriptive statistics).Remove informal phrasing in abstract and discussion. Is the work clearly and accurately presented and does it cite the current literature? Partly Is the study design appropriate and is the work technically sound? Partly Are sufficient details of methods and analysis provided to allow replication by others? Partly If applicable, is the statistical analysis and its interpretation appropriate? Partly Are all the source data underlying the results available to ensure full reproducibility? Partly Are the conclusions drawn adequately supported by the results? Yes Competing Interests: No competing interests were disclosed. Reviewer Expertise: Industrial Engineering, Supply Chain Management, Production Scheduling, Inventory Control, Digital Transformation in SMEs, and IoT-based Logistics Systems I confirm that I have read this submission and believe that I have an appropriate level of expertise to state that I do not consider it to be of an acceptable scientific standard, for reasons outlined above. Close READ LESS CITE CITE HOW TO CITE THIS REPORT Yosephine VS. Reviewer Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.186120.r411548 ) The direct URL for this report is: https://f1000research.com/articles/14-853/v1#referee-response-411548 NOTE: it is important to ensure the information in square brackets after the title is included in all citations of this article. COPY CITATION DETAILS Report a concern Respond or Comment COMMENT ON THIS REPORT Comments on this article Comments (0) Version 3 VERSION 3 PUBLISHED 02 Sep 2025 ADD YOUR COMMENT Comment keyboard_arrow_left keyboard_arrow_right Open Peer Review Reviewer Status info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions Reviewer Reports Invited Reviewers 1 2 3 Version 3 (revision) 29 Nov 25 read read Version 2 (revision) 07 Nov 25 read Version 1 02 Sep 25 read read Vina Sari Yosephine , Universitas Pembangunan Nasional Veteran Jakarta, Jakarta, Indonesia Juan Carlos Quiroz-Flores , Universidad de Lima, Santiago de Surco, Peru Muzaffar Asad , Tecnológico de Monterrey,, Monterrey, Mexico Comments on this article All Comments (0) Add a comment Sign up for content alerts Sign Up You are now signed up to receive this alert Browse by related subjects keyboard_arrow_left Back to all reports Reviewer Report 0 Views copyright © 2026 Yosephine V. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 30 Dec 2025 | for Version 3 Vina Sari Yosephine , Universitas Pembangunan Nasional Veteran Jakarta, Jakarta, Special Capital Region of Jakarta, Indonesia 0 Views copyright © 2026 Yosephine V. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. format_quote Cite this report speaker_notes Responses (0) Approved With Reservations info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions This paper has strong potential now, but requires one more serious methodological-theoretical upgrade, especially in this area. A proper causal-safe interpretation, A clear dynamic-capability construct mapping, And at least one mediation/moderation mechanism. While the study now explicitly refers to the Resource-Based View and Dynamic Capabilities perspectives, these frameworks are weakly integrated into the analytical structure of the study. The constructs of inventory measurement, control, valuation, and record-keeping are not clearly mapped to specific capability mechanisms such as sensing, seizing, and reconfiguring. As a result, the theoretical contribution is mainly descriptive rather than explanatory. Strengthening this linkage would enhance the paper’s contribution to the literature on operational capabilities and firm performance. A more critical concern relates to construct validity. Profitability is operationalized through Likert-scale perceptual measures labeled as ROA, gross margin, and ROE. These indicators are, by definition, objective financial ratios, and their measurement through subjective perceptions introduces a conceptual ambiguity that weakens the interpretability of the findings. Unless actual accounting data are used, the authors should clearly reframe these variables as perceived or self-reported profitability. Without this clarification, the empirical model risks conflating managerial perceptions with true financial performance. Regarding scientific novelty, the core empirical finding: that inventory measurement and control are more influential than valuation and record-keeping for profitability, is consistent with a substantial body of prior work on working capital management, digital visibility, and inventory analytics. Competing Interests No competing interests were disclosed. Reviewer Expertise Supply Chain Management, Logistics, SME Digitalization I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above. reply Respond to this report Responses (0) Yosephine VS. Peer Review Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.191965.r437232) NOTE: it is important to ensure the information in square brackets after the title is included in this citation. The direct URL for this report is: https://f1000research.com/articles/14-853/v3#referee-response-437232 keyboard_arrow_left Back to all reports Reviewer Report 0 Views copyright © 2025 Asad M. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 11 Dec 2025 | for Version 3 Muzaffar Asad , Entrepreneurship, Tecnológico de Monterrey,, Monterrey, Nuevo Leon, Mexico 0 Views copyright © 2025 Asad M. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. format_quote Cite this report speaker_notes Responses (0) Approved info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions I believe that Paper has been improved sufficiently. Competing Interests No competing interests were disclosed. Reviewer Expertise Entrepreneurship and SMEs performance I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard. reply Respond to this report Responses (0) Asad M. Peer Review Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.191965.r437231) NOTE: it is important to ensure the information in square brackets after the title is included in this citation. The direct URL for this report is: https://f1000research.com/articles/14-853/v3#referee-response-437231 keyboard_arrow_left Back to all reports Reviewer Report 0 Views copyright © 2025 Asad M. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 20 Nov 2025 | for Version 2 Muzaffar Asad , Entrepreneurship, Tecnológico de Monterrey,, Monterrey, Nuevo Leon, Mexico 0 Views copyright © 2025 Asad M. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. format_quote Cite this report speaker_notes Responses (1) Approved With Reservations info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions I have analyzed the paper and I believe that the topic has good potential. However, in my opinion, the entire work is shallow. The introduction is too brief, the literature has ignored almost majority of the relevant recent studies. The methodology is precise and the analysis is also very precise. the topic is good, but every step needs explanation and support of the most relevant and current literature. I am recommending a few studies, but you must enhance your writing to more literature and add at least the review of 30 40 more articles and strengthen introduction with theoretical gaps that your study is trying to fill. Likewise, for the literature, expand methodology, follow the tests needed to support the kind of analysis you are making. I am just recommending a few papers related to innovation and profitability, make sure you need to add more studies into it. Asad, M., Sulaiman, M. A., Awain, A. M., Alsoud, M., Allam, Z., & Asif, M. U. (2024). Green entrepreneurial leadership, and performance of entrepreneurial firms: Does green product innovation mediates? Cogent Business & Management, 11 (1), 2355685. doi:https://doi.org/10.1080/23311975.2024.2355685 Awain, A. M., Asad, M., Sulaiman, M. A., Asif, M. U., & Shanfari, K. S. (2025). Impact of supply chain risk management on product innovation performance of Omani SMEs: Synergetic moderation of technological turbulence and entrepreneurial networking. Sustainability, 17 (7), 2903. doi:https://doi.org/10.3390/su17072903 Sulaiman, M. A., Asad, M., Awain, A. M., Asif, M. U., & Shanfari, K. S. (2024). Entrepreneurial marketing and performance: Contingent role of market turbulence. Discover Sustainability, 5 , 1-20. doi:https://doi.org/10.1007/s43621-024-00710-8 Is the work clearly and accurately presented and does it cite the current literature? Partly Is the study design appropriate and is the work technically sound? Yes Are sufficient details of methods and analysis provided to allow replication by others? No If applicable, is the statistical analysis and its interpretation appropriate? Partly Are all the source data underlying the results available to ensure full reproducibility? No Are the conclusions drawn adequately supported by the results? Partly Competing Interests No competing interests were disclosed. Reviewer Expertise Entrepreneurship and SMEs performance I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above. reply Respond to this report Responses (1) Author Response 29 Nov 2025 VICTOR HUGO PUICAN RODRIGUEZ, Universidad Cesar Vallejo, Trujillo, Peru Dear reviewer, I sincerely appreciate the time you have taken to evaluate the manuscript and your detailed comments, which have been extremely useful in substantially improving the scientific quality and clarity of the work. Below, I present the actions taken in response to each of the points raised. 1. Comment: The introduction is too brief. Response: The introduction has been completely rewritten, significantly expanded, and its theoretical foundation strengthened. The new version incorporates: A more in-depth discussion of the operational and financial relevance of inventory management. A technical explanation of replenishment policies, forecasting methods, technology adoption, and their competitive impact. A more solid integration with accounting literature, especially regarding IFRS/IAS 2 requirements. A broad contextualization of the MSME environment, with recent data and comparative analysis. A clear and explicit delimitation of the theoretical gaps that the study seeks to address. A more detailed development of the Amazonian context and the relevance of the Bagua case. The introduction has gone from being brief to constituting a complete, coherent, and rigorous section with a solid conceptual foundation. 2. Comment: The bibliography ignores most of the relevant recent studies. At least 30 or 40 additional articles need to be consulted. Response: A comprehensive set of recent literature (2022–2025) has been incorporated, sourced from journals indexed in Scopus, Web of Science, and other high-impact databases. In total, 30 new references were added, selected for their conceptual relevance to: inventory management, dynamic capabilities, innovation and performance, inventory accounting under IFRS, analysis of MSMEs and emerging contexts, impact of technologies and market turbulence. The studies you suggested were also included, including: Asad et al. (2024), Awain et al. (2025), Sulaiman et al. (2024). These references were incorporated into the introduction, conceptual framework, and discussion, strengthening the relevance and depth of the theoretical basis. 3. Comment: “The methodology is accurate, but each step needs further explanation and bibliographic support; expand the methodology and follow the necessary tests.” Response: The methodology section was expanded and restructured to provide greater clarity and rigor. Notable improvements include: Expansion of the research design, justifying the choice of OLS analysis based on the explanatory objectives and the nature of the data. More complete description of the sampling process and its limitations. Detailed presentation of the operationalization of variables and their theoretical justification. Exhaustive explanation of validity and reliability: CVR, CVI, EFA, CFA, CR, AVE, and internal consistency. Incorporation of statistical tests prior to analysis (Shapiro–Wilk, Levene, VIF, Durbin–Watson). Explicit inclusion of procedural and statistical measures to mitigate common method bias. Clear articulation of how these tests support the results obtained. 4. Comment: The topic is good, but each step requires explanation and support from relevant literature. Response: Each section of the manuscript was reviewed to ensure that the analytical processes, methodological decisions, and findings were adequately linked to recent and relevant literature. The conceptual foundation was strengthened, particularly in the following areas: inventory replenishment and measurement systems, emerging economies and MSMEs, dynamic capability models, operational-accounting integration, financial impact of operational capabilities, technological and competitive turbulence. This allowed us to consolidate the link between theory, method, and results. 5. Comment: “Be sure to add more studies related to innovation and profitability.” Response: Recent, high-impact studies in these areas were incorporated, including the three articles you recommended. In addition, research was added on: operational innovation, process digitization, supply chain innovation, effects of technological turbulence on MSMEs, combined performance indicators. These references were integrated into both the introduction and the literature review, reinforcing the analysis of how inventory measurement acts as a dynamic capacity and how companies can translate operational practices into financial performance. Thank you again for your comments. The revisions made have substantially improved the scientific, methodological, and conceptual quality of the manuscript. I look forward to any additional recommendations you may consider relevant. Sincerely, Dr. Victor Puican Rodriguez View more View less Competing Interests No competing interests were disclosed. reply Respond Report a concern Asad M. Peer Review Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.190753.r431317) NOTE: it is important to ensure the information in square brackets after the title is included in this citation. The direct URL for this report is: https://f1000research.com/articles/14-853/v2#referee-response-431317 keyboard_arrow_left Back to all reports Reviewer Report 0 Views copyright © 2025 Quiroz-Flores J. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 16 Sep 2025 | for Version 1 Juan Carlos Quiroz-Flores , Carrera de Ingeniería Industrial, Universidad de Lima, Santiago de Surco, Lima, Peru 0 Views copyright © 2025 Quiroz-Flores J. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. format_quote Cite this report speaker_notes Responses (1) Approved With Reservations info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions The manuscript addresses a relevant and timely problem in the field of industrial engineering and presents findings that could be of interest to both academics and practitioners. Nevertheless, there are aspects that limit its current scientific soundness. First, the presentation of the work is only partly clear. Some sections lack precise definitions and the review of current literature is limited; expanding and updating the state of the art with more recent high-impact references would help to strengthen the context and highlight the research gap. Regarding the study design, it is partly appropriate but not fully explained. The methodological section does not provide sufficient detail on sampling criteria, operationalization of variables, or the validation of instruments, which makes replication by others difficult. Although the statistical analysis is included, its justification and interpretation are only partly appropriate; the authors should reinforce the robustness of the chosen techniques and explain why they are suitable for the research objectives. An important strength of the article is the open availability of all underlying data and supplementary materials in a public repository under a CC-BY 4.0 license. This commitment to transparency significantly increases the reproducibility and value of the work, enabling replication and secondary analysis by other researchers. However, even with data availability, the methods and analytical steps should be described more systematically in the manuscript itself to ensure clarity and replicability without external consultation. Finally, the conclusions are only partly supported by the results. While they are aligned with the stated objectives, in some cases they are presented with greater breadth than the evidence can fully sustain. A more cautious and data-driven interpretation is recommended. In summary, the article makes a potentially valuable contribution but requires improvements to achieve the necessary level of scientific rigor. Specifically, the authors should: (1) strengthen and update the literature review; (2) provide a more detailed methodological description; (3) improve the justification and clarity of the statistical analysis; and (4) refine the conclusions so that they are fully supported by the presented evidence. Addressing these points would considerably enhance the impact and credibility of the study. Is the work clearly and accurately presented and does it cite the current literature? Partly Is the study design appropriate and is the work technically sound? Partly Are sufficient details of methods and analysis provided to allow replication by others? No If applicable, is the statistical analysis and its interpretation appropriate? Partly Are all the source data underlying the results available to ensure full reproducibility? Yes Are the conclusions drawn adequately supported by the results? Partly Competing Interests No competing interests were disclosed. Reviewer Expertise Industrial Engineering, Process Improvement, Lean Manufacturing, Supply Chain Management, Six Sigma, Digital Transformation, Industry 4.0, Machine Learning. I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above. reply Respond to this report Responses (1) Author Response 07 Nov 2025 VICTOR HUGO PUICAN RODRIGUEZ, Universidad Cesar Vallejo, Trujillo, Peru Greetings, esteemed reviewer. Thank you very much for your comments on our work, which have enabled us to improve our research. All comments have been addressed. With gratitude, Dr Victor Puican View more View less Competing Interests No hay conflicto de intereses. reply Respond Report a concern Quiroz-Flores JC. Peer Review Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.186120.r411543) NOTE: it is important to ensure the information in square brackets after the title is included in this citation. The direct URL for this report is: https://f1000research.com/articles/14-853/v1#referee-response-411543 keyboard_arrow_left Back to all reports Reviewer Report 0 Views copyright © 2025 Yosephine V. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 16 Sep 2025 | for Version 1 Vina Sari Yosephine , Universitas Pembangunan Nasional Veteran Jakarta, Jakarta, Special Capital Region of Jakarta, Indonesia 0 Views copyright © 2025 Yosephine V. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. format_quote Cite this report speaker_notes Responses (0) Not Approved info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions General Summary The article, “Innovations in Inventory Management to Improve the Profitability of Local SMEs,” investigates the impact of inventory practices (control, valuation, record-keeping, and measurement) on the profitability of micro and small enterprises (MSEs) in Bagua, Peru. Using a quantitative, descriptive-explanatory design, the authors collected 200 valid responses from 83 MSEs via a 21-item Likert-scale questionnaire. Data were analyzed using descriptive statistics and multiple regression in SPSS v27, focusing on profitability indicators such as ROA, gross margin, and ROE. The results suggest that inventory measurement and inventory control significantly influence profitability, whereas valuation methods and record-keeping do not show significant effects. The authors conclude that improving measurement and control practices, along with adoption of digital systems, could enhance the financial performance of local SMEs. 1. Clarity The article is generally well written and follows a standard IMRAD structure. However, the writing style is sometimes descriptive and informal, especially in the introduction and discussion (“the most important thing this paper does…”). The literature cited is up to date (2020–2023) and relevant, but the review is presented more as a list of studies rather than a critical synthesis. There is no clear theoretical framework or conceptual model guiding the study. Suggestion: Revise the Introduction and Literature Review to critically synthesize prior work rather than listing references. Clearly identify the research gap and justify why Bagua, Peru, provides a meaningful contribution beyond confirming prior findings. Introduce or align with an established theoretical framework (e.g., Resource-Based View, Dynamic Capabilities, or Contingency Theory) to strengthen novelty. 2. Design The quantitative survey approach is acceptable, but the use of convenience sampling weakens generalizability. The paper labels the design as “descriptive-explanatory” but does not justify why this is the most suitable design. Only four inventory practice dimensions are considered without clear rationale or theoretical justification. Suggestion : Provide a stronger justification for the study design and selection of variables. Why were control, valuation, record-keeping, and measurement prioritized? Consider addressing common method bias and response bias, which are common risks in survey-based studies. Discuss limitations of convenience sampling more explicitly and propose how future research can address this. 3. Methodology Some methodological details are included (e.g., pilot test, Cronbach’s alpha, validation by experts), but more transparency is needed. Tables are incomplete (Table 1 shows only mean values; regression results are summarized but lack full coefficients, p-values, and confidence intervals). Suggestion Expand the Methods section with more detail on: Questionnaire design and item sources, reliability and validity results (report Cronbach’s alpha values, factor analysis results if available)., sampling logic (why 83 MSEs, how sectors were chosen). 4. Interpretation of Statistical Analysis The regression model is appropriate at a basic level and explains 40% of variance in profitability. However, the analysis is limited to simple regression. No robustness checks, mediation/moderation analysis, or multivariate modeling were attempted. Interpretation of results is shallow—conclusions mainly restate statistical findings without linking back to theory. Suggestion: Report full regression output, including coefficients, SE, t-values, and significance. Consider using more advanced methods (e.g., SEM-PLS or CFA) to validate the measurement model. Deepen the discussion by linking findings to prior studies and theoretical implications, not only descriptive interpretations. 5. ConclusionThe main conclusions (measurement and control matter more than valuation and record-keeping) are supported by the data. However, broader claims about competitiveness and profitability improvement are overstated given the narrow sample and cross-sectional design. Suggestion : Revise the Conclusion to better align with study limitations. Emphasize that findings are context-specific (Bagua SMEs) and cannot be generalized without caution. Add practical managerial implication s for SME managers (e.g., training, adoption of digital systems). Minor Improvements : Revise language for conciseness and academic tone. Improve tables and figures (add clarity, labels, descriptive statistics).Remove informal phrasing in abstract and discussion. Is the work clearly and accurately presented and does it cite the current literature? Partly Is the study design appropriate and is the work technically sound? Partly Are sufficient details of methods and analysis provided to allow replication by others? Partly If applicable, is the statistical analysis and its interpretation appropriate? Partly Are all the source data underlying the results available to ensure full reproducibility? Partly Are the conclusions drawn adequately supported by the results? Yes Competing Interests No competing interests were disclosed. Reviewer Expertise Industrial Engineering, Supply Chain Management, Production Scheduling, Inventory Control, Digital Transformation in SMEs, and IoT-based Logistics Systems I confirm that I have read this submission and believe that I have an appropriate level of expertise to state that I do not consider it to be of an acceptable scientific standard, for reasons outlined above. reply Respond to this report Responses (0) Yosephine VS. Peer Review Report For: Innovations in Inventory Management to Improve the Profitability of Local SMEs [version 1; peer review: 1 approved with reservations, 1 not approved] . F1000Research 2025, 14 :853 ( https://doi.org/10.5256/f1000research.186120.r411548) NOTE: it is important to ensure the information in square brackets after the title is included in this citation. 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