Linking inventory efficiency, productivity and responsiveness to retail firm outperformance: empirical insights from US retailing segments

Shockley, Jeff; Turner, Tobin

doi:10.1080/09537287.2014.906680

Cited by 17 publications

(25 citation statements)

References 27 publications

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“…In line with recent literature (Alan et al , 2014; Shockley and Turner, 2015) and following the original idea of Eroglu and Hofer (2011), there are three major inventory measurement methodologies: absolute measures including average inventory levels and maximum inventory levels (Shockley and Turner, 2015); standardized measures referring to inventory turnover and its variants, such as days of inventory (Koumanakos, 2008), inventory scaled by sales (Capkun et al , 2009), gross margin return on inventory (Alan et al , 2014; Shockley and Turner, 2015), and sales-to-inventory ratio (Mishra et al , 2013); and complex measures, such as empirical leanness indicator (ELI) (Eroglu and Hofer, 2011) and adjust inventory turnover (Alan et al , 2014), estimated by regression analysis.…”

Section: Literature Review and Hypothesis Developmentsupporting

confidence: 91%

The effect of inventory performance on product quality

Lin

Liang

Zhu

2018

IJQRM

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Purpose The purpose of this paper is to empirically investigate the relationship among inventory performance, financial performance (FP) and product quality. Design/methodology/approach The empirical analysis is based on two-stage least squares analysis of detailed firm-transaction data from Chinese manufacturing export firms for the period between 2001 and 2013. Findings Results show that inventory performance has a positive impact on product quality while using inventory efficiency, inventory productivity and inventory leanness to measure inventory performance. Furthermore, the effect of inventory performance on product quality is found to be partially mediated by FP. Practical implications The research provides mangers evidence of the benefits of inventory performance as an antecedent of product quality. Managers without sufficient liquidity or cost advantage to get better FP can achieve product quality improvement through enhancing inventory management performance. Originality/value This study first empirically investigates the relationship between inventory performance and product quality, and examines the mediating effect of FP on this relationship.

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Section: Literature Review and Hypothesis Developmentsupporting

confidence: 91%

The effect of inventory performance on product quality

Lin

Liang

Zhu

2018

IJQRM

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“…To verify the validity of our findings, we have assessed the robustness of our results by including two measures (ROI and EBITDA) for financial performance in our study. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) and return on investment (ROI) have been accepted by OSCM scholars as a reliable accounting-based financial measures to capture operational profitability which is independent of capital investments or non-operating expenses (Shi and Yu 2013;Shockley and Turner 2015). Following existing studies that investigated supply chains and financial outcomes (Vickery et al 2010;Quintana-García, Benavides-Chicón, and Marchante-Lara 2021), we have retested the model by including ROI and EBITDA as two measures of financial performance and found consistent results.…”

Section: Robustness Testmentioning

confidence: 99%

Financial performance and supply chain dynamic capabilities: the Moderating Role of Industry 4.0 technologies

Eslami

Jafari

Achtenhagen

et al. 2021

International Journal of Production Research

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Industry 4.0 digital technologies are becoming indispensable for firms striving to enhance their supply chain capabilities and financial performance, but how these relationships play out in practice remains unclear. To address this issue, this study assesses the relationship between supply chain integration, supply chain agility, and financial performance from a dynamic capability perspective. Further analyses are conducted to establish whether Industry 4.0 digital technologies moderate the association between (a) supply chain integration and supply chain agility and (b) supply chain agility and financial performance. Findings based on the data pertaining to a sample of 274 Swedish manufacturing firms indicate that supply chain agility fully mediates the link between supply chain integration and financial performance. However, while Industry 4.0 digital technologies strengthen the effect of supply chain agility on financial performance, they do not moderate the relationship between supply chain integration and supply chain agility. These findings contribute to the ongoing debate regarding how digital technologies play a role in achieving competitive advantage in interplay with dynamic capabilities related to the supply chain. These findings are relevant for decision-makers, as they address the need for organisational adjustments beyond the mere introduction of Industry 4.0 technologies to fully reap their benefits.

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“…Starting in the early 2000s, research have explored the measurement of inventory performance and three categories have emerged according to the summary of Eroglu and Hofer (2011): absolute measurements, like the average inventory level and the maximum inventory level (Shockley and Turner, 2015); standardized measurements, including inventory turnover and its derivatives – days of inventory (Koumanakos, 2008), inventory scaled by sales (Capkun et al , 2009), sales-to-inventory ratio (Mishra et al , 2013); complex measurements, such as Empirical Leanness Indicator (ELI) (Eroglu and Hofer, 2011) and data envelopment analysis (Lozano et al , 2009). Given the peer effects and returns-to-scale, we use the ELI as the focal variable to capture the relative degree of inventory reduction among similar size firms in the same industry.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The moderating role of organizational environments on the relationship between inventory leanness and venture survival in Chinese manufacturing

Wang

Lin

Shi

2019

JMTM

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Purpose The purpose of this paper is to investigate the relationship between inventory leanness and venture survival, and demonstrate the role of organizational environments in moderating this relationship from three dimensions: environmental complexity, dynamism and munificence. Design/methodology/approach Using a large panel data of more than 150,000 new Chinese small- and medium-sized enterprises between 2000 and 2007 in the manufacturing sector, the authors employ the method of survival analysis via an accelerated failure time model to explore the non-linear relationship between inventory leanness and the likelihood of survival. Moreover, the moderation model is applied to examine the moderating role of organizational environments. Findings At its core, this paper demonstrates the inverted U-shaped relationship between inventory leanness and the likelihood of survival. Furthermore, the authors find that environmental complexity and dynamism can negatively moderate this relationship, whereas environmental munificence acts the exact opposite. Practical implications Managers need to realize the trade-off between inventory leanness and venture survival. Collectively, more than 90 percent of new Chinese ventures have great potential to improve the likelihood of survival by implementing inventory leanness management. In addition, firms ought to be fully aware of the internal management and the external environments. Originality/value This is the first study to confirm the inverted U-shaped relationship between inventory leanness and the likelihood of survival, and empirically verify the moderating role of environmental complexity, dynamism and munificence on this relationship.

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Linking inventory efficiency, productivity and responsiveness to retail firm outperformance: empirical insights from US retailing segments

Cited by 17 publications

References 27 publications

The effect of inventory performance on product quality

The effect of inventory performance on product quality

Financial performance and supply chain dynamic capabilities: the Moderating Role of Industry 4.0 technologies

The moderating role of organizational environments on the relationship between inventory leanness and venture survival in Chinese manufacturing

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