To read the full version of this content please select one of the options below:

The impact of 3D printing implementation on stock returns: A contingent dynamic capabilities perspective

Hugo K.S. Lam (Management School, University of Liverpool, Liverpool, UK)
Li Ding (School of Management, Zhejiang University, Hangzhou, China) (Scheller College of Business, Georgia Institute of Technology, Atlanta, Georgia, USA)
T.C.E. Cheng (Department of Logistics and Maritime Studies, Hong Kong Polytechnic University, Kowloon, Hong Kong)
Honggeng Zhou (School of Management, Zhejiang University, Hangzhou, China)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 17 October 2019

Issue publication date: 20 November 2019

932

Abstract

Purpose

The purpose of this paper is to theoretically hypothesize and empirically test the impact of 3D printing (3DP) implementation on stock returns. It further explores how the stock returns due to 3DP implementation vary across different industry environments.

Design/methodology/approach

This paper integrates the dynamic capabilities view with contingency theory to provide a contingent dynamic capabilities (CDC) perspective on 3DP implementation. It argues that implementing 3DP enables firms to enhance their manufacturing capabilities and gain a competitive advantage, but the extent to which the competitive advantage can be realized is contingent on the fit between 3DP-enhanced manufacturing capabilities and firms’ operating environments. Those arguments are tested based on an event study of 232 announcements of 3DP implementation made by US publicly listed firms between 2010 and 2017.

Findings

The event study results show that firms implementing 3DP gain higher stock returns compared with their non-implementation industry peers over two years after the implementation. Such stock returns due to 3DP implementation are more pronounced for firms operating in more munificent, more dynamic and less competitive industry environments. Those findings are consistent with the CDC perspective.

Originality/value

This is the first research empirically examining the impact of 3DP implementation on stock returns. It provides important implications for managers to implement 3DP to enhance firms’ manufacturing capabilities and for researchers to study 3DP implementation from the CDC perspective.

Keywords

Acknowledgements

The authors thank the handling Guest Editor and two anonymous reviewers for their insightful comments and useful suggestions, which help improve the quality of this paper. The authors also thank Chen Liang (Zhejiang University) for assistance in verification of the sample and control firms used in the research. Lam was partly supported by the EC Project 777742 (GOLF-H2020-MSCA-RISE-2017) and the University of Liverpool’s ECR and Returners Fund. Cheng was supported in part by The Hong Kong Polytechnic University under the Fung Yiu King – Wing Hang Bank Endowed Professorship in Business Administration.

Citation

Lam, H.K.S., Ding, L., Cheng, T.C.E. and Zhou, H. (2019), "The impact of 3D printing implementation on stock returns: A contingent dynamic capabilities perspective", International Journal of Operations & Production Management, Vol. 39 No. 6/7/8, pp. 935-961. https://doi.org/10.1108/IJOPM-01-2019-0075

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

Related articles