An examination of the relationships between JIT and financial performance
Abstract
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.
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Fullerton et al. (2003) applied SGMM to assess the relationship between just-in-time practices and financial performance, demonstrating its capacity to handle complex operational-financial linkages.
“Fullerton et al. (2003) also applied SGMM to assess the relationship between just-in-time practices and financial performance, demonstrating its capacity to handle complex operational-financial linkages.”
From Business growth and management costs as moderators of the inventory-performance link: Evidence from Vietnamese manufacturing firms (2025) · cites this paper as Fullerton et al. (2003)
The negative association between average inventory days and ROA is consistent with earlier studies by Demeter (2003), Fullerton et al. (2003), and Elsayed and Wahba (2016).
“This is consistent with earlier studies by Demeter (2003), Fullerton et al. (2003), and Elsayed and Wahba (2016)”
From Business growth and management costs as moderators of the inventory-performance link: Evidence from Vietnamese manufacturing firms (2025) · cites this paper as Fullerton et al. (2003)
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- Authors
- Fullerton, R. R., McWatters, C. S., & Fawson, C.
- Affiliations
- Utah State University (US)
- McGill University (CA)
- Corresponding author
- Fullerton, Rosemary R.
- Venue
- Journal of Operations Management
- Publisher
- Wiley
- Published
- 2003-02-06
- Volume
- 21
- Issue
- 4
- Pages
- 383-404
- ISSN
- 0272-6963 (ISSN-L)
- 1873-1317
- OpenAlex
- W2069500873
- Cited by
- 422
- References
- 5
- Citations by year
- 2026: 9 · 2025: 8 · 2024: 8 · 2023: 10 · 2022: 5 · 2021: 20 · 2020: 14 · 2019: 18 · 2018: 37 · 2017: 25 · 2016: 21 · 2015: 31 · 2014: 41 · 2013: 32 · 2012: 37
- FWCI
- 15.72
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Operations Management (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Management Information Systems › Quality and Supply Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Management and Optimization Techniques
- Social Sciences › Business, Management and Accounting › Management Information Systems › Supply Chain and Inventory Management
- Keywords
- just-in-time production, financial performance, profitability, JIT implementation, manufacturing companies, sustainable performance
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