Further Evidence on the Extent and Origins of JIT's Profitability Effects

Kinney, Michael; Wempe, William F.

doi:10.2308/accr.2002.77.1.203

Cited by 170 publications

(155 citation statements)

References 4 publications

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“…These three measures were obtained from Compustat. Although interdependent, ROA and ROS reflect different determinants of a business success or failure (Kinney and Wempe, 2002). For example, Atkinson et al (2001) describe asset turnover as a measure of productivity -the ability to generate sales with a given level of investment -and ROS as a measure of efficiency -the ability to control costs at a given level of sales activity.…”

Section: Firm Profitabilitymentioning

confidence: 99%

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Maiga

Nilsson

Jacobs

2013

International Journal of Accounting Information Systems

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Organizations increasingly rely on information technology (IT) to improve performance. Yet, there is debate about the pay-off of the IT revolution, and empirical evidence suggests that investments in IT do not guarantee enhanced performance. Drawing from accounting, marketing, management and information technology literature, this study uses structural equation modeling to assess the extent to which managerial use of IT is intertwined with control issues including learning routines (internal and external), product quality, cost improvement, customer satisfaction and firm profitability. The conceptual framework builds on knowledge-and resource-based views and return on quality perspectives. The results indicate support for the theoretical framework. Extent of managerial IT use influences internal and external learning routines that influence quality and cost improvement. Quality improvement significantly impacts customer satisfaction and cost improvement that significantly impact firm profitability. The non-hypothesized paths are not significant, indicating that learning routines, quality improvement, cost improvement and customer satisfaction are intervening variables between extent of managerial IT use and firm profitability. Further, the sample is split into two industry subgroups, durable and nondurable goods subgroups, and the two-group analysis reveals that industry moderates the relationship among the variables under study. The effects are in general more pronounced for durable goods firms.

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Section: Firm Profitabilitymentioning

confidence: 99%

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Maiga

Nilsson

Jacobs

2013

International Journal of Accounting Information Systems

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“…27 Previous research has suggested that business size is likely to interact with marketing and operational practices, leading to a different effect on firm performance (Kinney & Wempe, 2002). In this regard, we consider sales turnover as an objective measure of "business size".…”

Section: Comparing Performance Of Qandm Implementation Configurationsmentioning

confidence: 99%

Configuring quality management and marketing implementation and the performance implications for industrial marketers

Lai

Yeung

Cheng

2012

Industrial Marketing Management

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“…Although interdependent, ROA and ROS reflect different determinants of a business success or failure (Kinney and Wempe, 2002). Atkinson et al (2001) describe asset turnover as a measure of productivitythe ability to generate sales with a given level of investment-and ROS as a measure of efficiency-the ability to control costs at a given level of sales activity.…”

Section: Survey Questionnaire and Variable Measurementmentioning

confidence: 99%

Relationships between internal and external information systems integration, cost and quality performance, and firm profitability

Maiga

Nilsson

2015

International Journal of Production Economics

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a b s t r a c tThis paper proposes that the impact of information systems (IS) integration on manufacturing firm profitability is underestimated as a result of inadequate attention to indirect effects. The study uses structural equation modeling to investigate the associations among internal and external information system integration, quality and cost performance, and firm profitability. Overall, the results from a mail survey of 263 member firms of the Institute for Supply Management support the theoretical model. Results indicate that (a) internal IS integration has a significant positive association with external IS integration, (b) both internal IS integration and external IS integration are significantly positively associated with cost and quality performance, (c) quality performance is significantly positively associated with cost performance, and (d) both quality and cost performance have significant positive associations with firm profitability. However, the direct effects of internal and external IS integration on firm profitability are not significant. Rather, the association is through cost and quality performance, suggesting that both cost and quality performance act as intervening variables. This study extends the literature on IS integration by providing insights into a set of interrelationships that matters for the attainment of firm profitability from IS integration.

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Further Evidence on the Extent and Origins of JIT's Profitability Effects

Cited by 170 publications

References 4 publications

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Configuring quality management and marketing implementation and the performance implications for industrial marketers

Relationships between internal and external information systems integration, cost and quality performance, and firm profitability

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