A financial analysis of inventory leanness before, during and after the Covid-19 crisis

IF 3.8 Q2 MANAGEMENT TQM Journal Pub Date : 2023-08-22 DOI:10.1108/tqm-03-2023-0080
Md Reiazul Haque
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引用次数: 1

Abstract

PurposeThe recent Covid-19 crisis has exposed the limitations of inventory leanness (i.e. keeping fewer inventories than expected), leading its followers to question whether it is the end of inventory leanness. This study aims to answer that question from a financial perspective.Design/methodology/approachThis study considers 2019, 2020 and 2021 as the pre-, during- and post-Covid periods, respectively, and compares the financial performance and risks of firms that followed a lean inventory strategy (lean firms) to those that do not (non-lean firms). The sample is drawn from manufacturing firms in the USA, and the data are analyzed using univariate tools (such as a t-test) and multivariate regressions.FindingsThe results show that the financial performance of lean firms was better than that of non-lean firms under normal operating conditions in 2019, which continued to sustain during the crisis and post-crisis operating conditions in 2020 and 2021, respectively. Lean firms were also less risky than non-lean firms, except for in 2020, where they were equally risky.Practical implicationsA financial perspective suggests that managers of lean firms who might be thinking of changing over to a non-lean or more conservative strategy in the post-Covid era in relation to their firms' level of inventories do not need to do so unless otherwise required.Originality/valueThis is the very first study that shows the implications of inventory leanness for firms across three operating conditions: pre-crisis (normal business condition), crisis (abnormal business condition) and post-crisis (sub-normal business condition).
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2019冠状病毒病危机之前、期间和之后的库存精益财务分析
最近的Covid-19危机暴露了库存精益(即库存少于预期)的局限性,导致其追随者质疑库存精益是否已经结束。本研究旨在从财务角度回答这个问题。本研究将2019年、2020年和2021年分别视为新冠疫情前、期间和之后的时期,并比较了遵循精益库存战略的企业(精益企业)与不遵循精益库存战略的企业(非精益企业)的财务绩效和风险。样本来自美国的制造企业,数据使用单变量工具(如t检验)和多变量回归进行分析。研究结果表明,2019年在正常经营条件下,精益企业的财务绩效优于非精益企业,并分别在2020年和2021年的危机和危机后经营条件下继续维持。精益企业的风险也低于非精益企业,除了在2020年,两者的风险相当。从财务角度来看,精益企业的管理者如果在后新冠时代考虑到公司的库存水平,可能会考虑改用非精益或更保守的战略,除非另有要求,否则他们不需要这样做。独创性/价值这是第一个研究表明库存精益对企业在三种经营状况下的影响:危机前(正常经营状况)、危机(异常经营状况)和危机后(次正常经营状况)。
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来源期刊
TQM Journal
TQM Journal Business, Management and Accounting-Business, Management and Accounting (all)
CiteScore
9.10
自引率
0.00%
发文量
114
期刊介绍: Commitment to quality is essential if companies are to succeed in a commercial environment which will be virtually unrecognizable in less than a decade. Changing attitudes, changing perspectives and changing priorities will revolutionise the structure and philosophy of future business practice - and TQM will be at the heart of that metamorphosis. All aspects of preparing for, developing, introducing, managing and evaluating TQM initiatives.
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