Premium
An examination of the relationships between JIT and financial performance
Author(s) -
Fullerton Rosemary R.,
McWatters Cheryl S.,
Fawson Chris
Publication year - 2003
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/s0272-6963(03)00002-0
Subject(s) - profitability index , linkage (software) , business , premise , industrial organization , empirical research , manufacturing , perspective (graphical) , marketing , operations management , finance , computer science , economics , biochemistry , chemistry , linguistics , philosophy , epistemology , gene , artificial intelligence
Despite abundant information explaining the expected benefits from successful just‐in‐time (JIT) implementation, only tenuous validation of the linkage between financial performance and JIT exists. Managers act rationally in implementing JIT if they are convinced that JIT enhances firm performance. From both a cross‐sectional and longitudinal perspective, this survey study of 253 US manufacturing firms finds significant statistical relationships between measures of profitability and the degree of specific JIT practices used. The evidence provides empirical support to the premise that firms that implement and maintain JIT manufacturing systems will reap sustainable rewards as measured by improved financial performance.