The Accounting Review Vol. 77 No. 1 2002
Further Evidence on the Extent and Origins of JIT's Profitability Effects
Abstract
Empirical research provides scant evidence that just-in-time (JIT) adopters outperform their non-adopting industry peers. Using a sample of 201 JIT adopters and matched non-adopters, we examine the relation between financial performance and JIT. Our sample-wide results indicate that JIT adopters improve financial performance relative to non-adopters, and that profit margin, rather than asset turnover, is the primary source of such improvement. However, results of additional analyses suggest that JIT adopters below a firm-size threshold do not improve financial performance, a finding that reconciles our study to Balakrishnan et al. (1996), which examined a JIT adopter sample that included a greater proportion of small firms.
- DOI
- 10.2308/accr.2002.77.1.203
- Volume
- 77
- Issue
- 1
- Pages
- 203-225
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref