Inventory improvement and financial performance

Cannon, Alan R.

doi:10.1016/j.ijpe.2008.07.006

Cited by 90 publications

(96 citation statements)

References 62 publications

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“…For example, Vastag and Whybark (2005) demonstrated that there was no relationship between inventory turnover and performance. Likewise, Cannon (2008) found that there was no correlation between inventory management efficiency and overall financial performance. When the effects of time were taken into account, turnover improvement on average had a slightly negative effect on return on asset.…”

mentioning

confidence: 99%

The mediating effect of knowledge of inventory management in the relationship between inventory management practices and performance: The case of micro retailing enterprises

Ahmad¹,

Zabri²

2018

JBRMR

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mentioning

confidence: 99%

The mediating effect of knowledge of inventory management in the relationship between inventory management practices and performance: The case of micro retailing enterprises

Ahmad¹,

Zabri²

2018

JBRMR

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“…Xu & Yao (2008), based on 1998 to 2004 listed firms dataset, suggest that the relationship between financial performance and inventory turnover can be characterised as an inverted-U shape. In the same year, Cannon (2008) indicated no link between improvements of inventory performance and overall firm performance. However, Capkun et al (2009), also using the data of listed US manufacturing firms but for the period of 1980 to 2005, show a positive relationship between inventory performance and financial performance.…”

Section: Financial Performancementioning

confidence: 96%

A Review of Inventory Investment: The Macro and Micro Perspective

Jian-yu¹

2016

JFRM

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This article combed the domestic and foreign researches on inventory investment since 1990. We find that researches mainly focus on the macro level of the relationship between inventory investment and business cycle, the effects of inflation or interest rates on inventory adjustment. While in the micro enterprise level, they study the determiners of inventory investment, including financing constraints, size and location. Besides, the role of inventory investment behavior on corporate performance has not yet reached a consensus. Based on the analysis of the existing literatures, we put forward the possible directions for future research in the field of inventory investment, combining with China's specific conditions.

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“…Although inventory efficiency is central to lean operations, other studies have found no significant effect of lean inventories on financial performance (Balakrishnan et al 1996;Cannon 2008). Gaur et al (2005) and Rumyantsev and Netessine (2007) have shown that being responsive is more important than being efficient.…”

Section: Introductionmentioning

confidence: 99%

Interdependence Among Inventory Types and Firm Performance

Manikas

2017

OSCM: An Int. Journal

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Extant research on lean manufacturing has focused on the relationship between systemic inventory and performance. However, limited research, if any, has focused on dynamics between three main types of inventory -raw material, workin-process, and finished goods -and firm performance. Drawing on the interdependence framework and a sample of 1,286 firms representing 41,067 firm-quarter observations from 2000 to 2013, when considering two types of inventory efficiencies jointly, higher efficiency in the subsequent inventory type must be accompanied by lower efficiency in the previous inventory type. In other words, lower raw material inventory efficiency and higher work-in-process inventory efficiency, or lower work-in-process inventory efficiency and higher finished goods inventory efficiency are associated with higher performance. High performance is also realized only when inventory efficiency is increasing across all three inventory types. The findings show that pursuing efficiency in one type of inventory requires lower efficiency in the previous inventory stage, and benefits of lean manufacturing could only be realized when all three inventory efficiencies are simultaneously high.

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Inventory improvement and financial performance

Cited by 90 publications

References 62 publications

The mediating effect of knowledge of inventory management in the relationship between inventory management practices and performance: The case of micro retailing enterprises

The mediating effect of knowledge of inventory management in the relationship between inventory management practices and performance: The case of micro retailing enterprises

A Review of Inventory Investment: The Macro and Micro Perspective

Interdependence Among Inventory Types and Firm Performance

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