Supply-Chain Concentration and Inefficient Investment

Hui, Zhiyang

doi:10.1080/1540496x.2023.2179873

Cited by 8 publications

(8 citation statements)

References 48 publications

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“…, 2017; Zhu et al. , 2021; Hui, 2023). These studies underscore the substantial and positive role of inventory management in enhancing financial performance and facilitating financing, shaping financial outcomes, and securing financial support.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Scholars have meticulously probed the interplay between inventory management and various financial dimensions, encompassing financial performance, credit ratings, and environmental and inefficient investments (Eroglu and Hofer, 2011;Bendig et al, 2017;Zhu et al, 2021;Hui, 2023). These studies underscore the substantial and positive role of inventory management in enhancing financial performance and facilitating financing, shaping financial outcomes, and securing financial support.…”

Section: Jmtm 353mentioning

confidence: 99%

“…Prudent inventory management not only positively influences credit ratings, signaling fiscal prudence to external stakeholders (Liu et al, 2023), but also substantiates financial health. Optimized inventory levels and streamlined processes can enhance a company's creditworthiness, potentially unlocking favorable credit terms and broader financial opportunities (Bendig et al, 2017;Hui, 2023).…”

Section: Jmtm 353mentioning

confidence: 99%

“…Optimized inventory levels and streamlined processes can enhance a company's creditworthiness, potentially unlocking favorable credit terms and broader financial opportunities (Bendig et al. , 2017; Hui, 2023).…”

Section: Literature Reviewmentioning

confidence: 99%

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Does lean inventory management alleviate financing constraints?

Wang,

Yao,

Zhu

et al. 2024

JMTM

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PurposeThis study explores the intricate relationship between inventory leanness, financial constraints and digital transformation in listed Chinese manufacturing firms.Design/methodology/approachUsing a large panel data collected from 2,563 Chinese listed manufacturing enterprises over the period from 2012 to 2021, this research employs the instrumental variable method combined with two-stage least squares estimators to explore the U- shaped relationship between inventory leanness and financial constraints. Furthermore, the moderating role of digital transformation is demonstrated.FindingsContrary to traditional assumptions, our research uncovers a U-shaped relationship between inventory leanness and financial constraints, indicating that excessive inventory reduction can exacerbate financial constraints. Digital transformation plays a significant moderating role, particularly in highly digitalized environments.Practical implicationsOur findings have practical significance for top managers and policymakers. We advocate for a balanced approach to lean inventory management to mitigating financial constraints. The study emphasizes the pivotal role of digital transformation in alleviating the impact of inventory leanness on financial constraints, highlighting the need for digital transformation strategies.Originality/valueThis research provides a comprehensive analysis of inventory leanness, financial constraints and digital transformation dynamics. It challenges conventional thinking by revealing the nonlinear nature of the inventory leanness–financial constraints relationship. The concept of moderation highlights the moderating effect of digital transformation. This study offers practical guidance for practitioners and policymakers.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Jmtm 353mentioning

confidence: 99%

Section: Jmtm 353mentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Does lean inventory management alleviate financing constraints?

Wang,

Yao,

Zhu

et al. 2024

JMTM

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“…Not coincidentally, SunWin (Hubei) Optoelectronic Technology, as a high-tech company, is also in a situation of higher SCC but lower R&D investment. Many scholars showed that high SCC reduced the bargaining power of midstream firms (Ahsan et al, 2023;Hui, 2023), thus resulting in no spare funds in R&D activities because of lower profits. Moreover, high SCC exposes firms to higher risks (Dhaliwal et al, 2016), which makes them cautious about R&D activities, as R&D activities are also high-risk.…”

Section: Introductionmentioning

confidence: 99%

Does supply chain concentration promote or inhibit corporate R&D investment?

Zhao,

Fan,

Shao

et al. 2024

CMS

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Purpose This study aims to investigate the impact of supply chain concentration (SCC) on corporate research and development (R&D) investment and determine the moderating roles of industry concentration and financing constraints on the relationship between SCC and R&D investment. Design/methodology/approach The study collected data from Chinese listed companies, used the fixed effects model to test the research hypotheses and further used the two-stage Heckman test and propensity score matching (PSM) to address potential endogeneity issues. Findings The result reveals a negative impact of SCC on corporate R&D investment. In addition, industry concentration mitigates the negative impact of SCC on corporate R&D investment, but financing constraints strengthen the negative impact. Originality/value This study introduces the concept of SCC and empirically tests its effect on R&D investment, further explaining the lack of corporate innovation. This study inspires companies to strengthen SC management and weigh the level of SCC with environmental factors.

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