The Impact of Lean Inventory Management on Firm Performance——Empirical Evidence from Chinese Listed Manufacturing Firms

Abstract

Abstract:

Based on the Chinese manufacturing firms listed in the period of 2009 to 2014, we use Panel Data models to verify the impact of lean inventory management on firm performance. The results indicate that inventory management has a positive impact on firm performance. There is a significant difference between firms with deep lean inventory management and firms without that, and firms with deep lean inventory management have higher level of performance. There is an inverted U shape relationship between lean inventory management and firm performance, and it is advised that there is an optimal lean inventory management interval range effective for firm performance. And the further results indicate that the impact of lean inventory management on performance varies across industries, and industry scale and gross margin are the main causes of industry difference.

Key words: lean production, lean inventory management, firm performance

Wang Chunhao, Zhang Jie, Ma Jun. The Impact of Lean Inventory Management on Firm Performance——Empirical Evidence from Chinese Listed Manufacturing Firms[J]. , 2017, 29(5): 165-174.

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