{"title":"The relationship between inventory leanness and product innovation with the contingent role of market concentration","authors":"Jingbin Wang, Xinyan Yao, Xuechang Zhu","doi":"10.1108/jmtm-02-2023-0043","DOIUrl":null,"url":null,"abstract":"PurposeThis study aims to demonstrate the simultaneous effects between inventory leanness and product innovation, with market concentration being a moderator.Design/methodology/approachUsing a large panel data collected from 3071 listed manufacturing enterprises from 2004 to 2021, this research employs a simultaneous system of equations via the three-stage least square method to explore the simultaneous relationship between inventory leanness and product innovation. In addition, the moderating role of market concentration is demonstrated via one four-model system.FindingsAs its core, inventory leanness positively impacts product innovation, while product innovation negatively affects inventory leanness. Moreover, there are differential impacts of the leanness of three inventory types on product innovation. Specifically, the inventory leanness of raw material negatively affects product innovation, while the inventory leanness of work-in-process and finished goods positively affect product innovation. Further, moderation analysis highlights that market concentration is a key moderator of this relationship.Practical implicationsManagers should carefully gauge the tradeoffs between inventory leanness and product innovation. Concretely, managers ought to consider the connections between inventory types and product innovation. In addition, managers are suggested to emphasis on market strategy.Originality/valueThis paper not only contributes to the current understanding of inventory leanness by verifying the impact of inventory leanness on product innovation but also investigates the simultaneous relationship between various inventory types and product innovation. Furthermore, it empirically demonstrates the moderating effect of market concentration on the relationship between inventory leanness and product innovation.","PeriodicalId":16301,"journal":{"name":"Journal of Manufacturing Technology Management","volume":null,"pages":null},"PeriodicalIF":7.3000,"publicationDate":"2023-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Manufacturing Technology Management","FirstCategoryId":"5","ListUrlMain":"https://doi.org/10.1108/jmtm-02-2023-0043","RegionNum":2,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ENGINEERING, INDUSTRIAL","Score":null,"Total":0}
引用次数: 0
Abstract
PurposeThis study aims to demonstrate the simultaneous effects between inventory leanness and product innovation, with market concentration being a moderator.Design/methodology/approachUsing a large panel data collected from 3071 listed manufacturing enterprises from 2004 to 2021, this research employs a simultaneous system of equations via the three-stage least square method to explore the simultaneous relationship between inventory leanness and product innovation. In addition, the moderating role of market concentration is demonstrated via one four-model system.FindingsAs its core, inventory leanness positively impacts product innovation, while product innovation negatively affects inventory leanness. Moreover, there are differential impacts of the leanness of three inventory types on product innovation. Specifically, the inventory leanness of raw material negatively affects product innovation, while the inventory leanness of work-in-process and finished goods positively affect product innovation. Further, moderation analysis highlights that market concentration is a key moderator of this relationship.Practical implicationsManagers should carefully gauge the tradeoffs between inventory leanness and product innovation. Concretely, managers ought to consider the connections between inventory types and product innovation. In addition, managers are suggested to emphasis on market strategy.Originality/valueThis paper not only contributes to the current understanding of inventory leanness by verifying the impact of inventory leanness on product innovation but also investigates the simultaneous relationship between various inventory types and product innovation. Furthermore, it empirically demonstrates the moderating effect of market concentration on the relationship between inventory leanness and product innovation.
期刊介绍:
The Journal of Manufacturing Technology Management (JMTM) aspires to be the premier destination for impactful manufacturing-related research. JMTM provides comprehensive international coverage of topics pertaining to the management of manufacturing technology, focusing on bridging theoretical advancements with practical applications to enhance manufacturing practices.
JMTM seeks articles grounded in empirical evidence, such as surveys, case studies, and action research, to ensure relevance and applicability. All submissions should include a thorough literature review to contextualize the study within the field and clearly demonstrate how the research contributes significantly and originally by comparing and contrasting its findings with existing knowledge. Articles should directly address management of manufacturing technology and offer insights with broad applicability.