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Article
Publication date: 14 March 2024

Jingbin Wang, Xinyan Yao, Xuechang Zhu and Baitong Li

This study explores the intricate relationship between inventory leanness, financial constraints and digital transformation in listed Chinese manufacturing firms.

Abstract

Purpose

This study explores the intricate relationship between inventory leanness, financial constraints and digital transformation in listed Chinese manufacturing firms.

Design/methodology/approach

Using a large panel data collected from 2,563 Chinese listed manufacturing enterprises over the period from 2012 to 2021, this research employs the instrumental variable method combined with two-stage least squares estimators to explore the U- shaped relationship between inventory leanness and financial constraints. Furthermore, the moderating role of digital transformation is demonstrated.

Findings

Contrary to traditional assumptions, our research uncovers a U-shaped relationship between inventory leanness and financial constraints, indicating that excessive inventory reduction can exacerbate financial constraints. Digital transformation plays a significant moderating role, particularly in highly digitalized environments.

Practical implications

Our findings have practical significance for top managers and policymakers. We advocate for a balanced approach to lean inventory management to mitigating financial constraints. The study emphasizes the pivotal role of digital transformation in alleviating the impact of inventory leanness on financial constraints, highlighting the need for digital transformation strategies.

Originality/value

This research provides a comprehensive analysis of inventory leanness, financial constraints and digital transformation dynamics. It challenges conventional thinking by revealing the nonlinear nature of the inventory leanness–financial constraints relationship. The concept of moderation highlights the moderating effect of digital transformation. This study offers practical guidance for practitioners and policymakers.

Details

Journal of Manufacturing Technology Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 5 January 2024

Jesper Haga and Kim Ittonen

This paper examines the organizational resilience of audit firms during the early stages of COVID-19. The unexpected restrictions placed on travel and on-site working created…

Abstract

Purpose

This paper examines the organizational resilience of audit firms during the early stages of COVID-19. The unexpected restrictions placed on travel and on-site working created unanticipated barriers for auditors in Hong Kong. The authors expect that auditors with greater organizational resilience can respond to unexpected situations and restore expected performance levels relatively quickly.

Design/methodology/approach

The authors utilize a sample of 1,008 companies listed on Hong Kong Stock Exchange (HKEX) with a financial year-end of December 31. The authors identify five proxies contributing to organizational resilience: auditor size, industry specialization, diversity, geographic proximity to the client and auditing a new client. The authors use audit report timeliness as this study's main dependent variable.

Findings

This study's full-sample results suggest that larger auditors, industry specialists and auditors with closer relationships to clients issued more timely audit reports during the pandemic. The analysis of a subsample of companies that initially published unaudited financial statements reveals that industry expertise and longer auditor-client relationships significantly reduced the need for year-end audit adjustments. Finally, the authors find that larger auditors were more likely to offload clients, whereas industry specialists were more likely to retain clients.

Research limitations/implications

The results of the paper suggests that audit firm characteristics associated cognitive abilities, behavioral characteristics and contextual conditions are associated with audit firm organizational resilience and, consequently, helps auditors respond unexpected changes in the audit environment.

Practical implications

The findings of the paper are informative for those involved in audit firm management or auditor hiring and retention decisions.

Originality/value

This study is the first to link organizational resilience to the performance of audit firms in a time of unexpected events. The authors connect three auditor and two auditor-client dimensions to the organizational resilience of the audit firms.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 5 February 2024

Ahsan Haghgoei, Alireza Irajpour and Nasser Hamidi

This paper aims to develop a multi-objective problem for scheduling the operations of trucks entering and exiting cross-docks where the number of unloaded or loaded products by…

Abstract

Purpose

This paper aims to develop a multi-objective problem for scheduling the operations of trucks entering and exiting cross-docks where the number of unloaded or loaded products by trucks is fuzzy logistic. The first objective function minimizes the maximum time to receive the products. The second objective function minimizes the emission cost of trucks. Finally, the third objective function minimizes the number of trucks assigned to the entrance and exit doors.

Design/methodology/approach

Two steps are implemented to validate and modify the proposed model. In the first step, two random numerical examples in small dimensions were solved by GAMS software with min-max objective function as well as genetic algorithms (GA) and particle swarm optimization. In the second step, due to the increasing dimensions of the problem and computational complexity, the problem in question is part of the NP-Hard problem, and therefore multi-objective meta-heuristic algorithms are used along with validation and parameter adjustment.

Findings

Therefore, non-dominated sorting genetic algorithm (NSGA-II) and non-dominated ranking genetic algorithm (NRGA) are used to solve 30 random problems in high dimensions. Then, the algorithms were ranked using the TOPSIS method for each problem according to the results obtained from the evaluation criteria. The analysis of the results confirms the applicability of the proposed model and solution methods.

Originality/value

This paper proposes mathematical model of truck scheduling for a real problem, including cross-docks that play an essential role in supply chains, as they could reduce order delivery time, inventory holding costs and shipping costs. To solve the proposed multi-objective mathematical model, as the problem is NP-hard, multi-objective meta-heuristic algorithms are used along with validation and parameter adjustment. Therefore, NSGA-II and NRGA are used to solve 30 random problems in high dimensions.

Details

Journal of Modelling in Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 13 February 2024

Cori Crews, John Abernathy, Jimmy Carmenate, Divesh Sharma and Vineeta Sharma

The purpose of this study is to investigate the association between nonaudit services (NAS) and out-of-period adjustments (OOPAs). Over the years, the number of OOPAs has risen…

Abstract

Purpose

The purpose of this study is to investigate the association between nonaudit services (NAS) and out-of-period adjustments (OOPAs). Over the years, the number of OOPAs has risen while the number of restatements has decreased. This could indicate an improvement in financial reporting quality. It could also indicate the use of a type of stealth restatement for opportunistic purposes. These less prominent restatements are more likely to go undetected and could perpetuate opportunistic disclosure and mitigate the likelihood of unfavorable market reactions.

Design/methodology/approach

The authors use a two-stage multivariate regression analysis to examine the relationship between NAS and the reporting of an OOPA. The authors use prior research on NAS to guide the model development. The authors perform several robustness checks including different types of NAS and different characteristics of OOPAs.

Findings

The results indicate that NAS has a significantly negative association with the existence of OOPAs. The core findings suggest that NAS does not impair auditor independence. Rather, greater amounts of NAS may contribute to knowledge spillover, which leads to higher financial reporting and audit quality. The results are robust to several additional tests.

Research limitations/implications

The results raise interesting implications for regulators, executives, auditors, investors and future research. The authors provide insight into the relationship between NAS and auditor independence.

Originality/value

To the best of the authors’ knowledge, prior research has not considered the effect of NAS on OOPAs. The authors contribute to the literature by providing evidence that OOPAs, a form of stealth restatements, is an important consideration in audit quality research.

Details

Managerial Auditing Journal, vol. 39 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 12 December 2022

Jianhua Yang, Yuying Liu and Moustafa Mohamed Nazief Haggag Kotb Kholaif

The purpose of this paper is to examine the impact of two typical relationship management approaches (trust relationship with suppliers and reciprocity) on manufacturer resilience…

Abstract

Purpose

The purpose of this paper is to examine the impact of two typical relationship management approaches (trust relationship with suppliers and reciprocity) on manufacturer resilience in the context of the COVID-19 crisis. Moreover, this paper aims to deepen the understanding of environmental uncertainty's moderating effect on the association between the trust relationship with suppliers (TRS) and reciprocity.

Design/methodology/approach

Structural equation modeling has been used to test the hypotheses on 361 Chinese manufacturing firms' managers and independent directors during the COVID-19 crisis.

Findings

The results reveal that reciprocity positively enhances three dimensions of manufacturer resilience, namely, preparedness, responsiveness and recovery capability. Reciprocity positively mediates the relationships between TRS and preparedness, responsiveness and recovery capability. Moreover, environmental uncertainty moderates the association between TRS and reciprocity.

Practical implications

This study highlights the critical role of reciprocity, the relational governance approach, in enhancing manufacturer resilience in practice. This paper suggests that during emergencies such as the COVID-19 pandemic, managers should adopt trust and reciprocity in supplier relationship governance to strengthen the resilience of manufacturing companies and adapt effective strategies according to the environment.

Originality/value

This study is unique in developing new scales of manufacturer resilience through interviews and surveys with Chinese manufacturers and theoretical research. Based on the social capital theory and social exchange theory, this study shed light on the role of trust and reciprocity. It also bridges relational governance theory with the literature on manufacturing firm resilience literature to help manufacturers better understand the transdisciplinary links between relationship management and resilient operations in emergencies.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 26 March 2024

Rohit Kumar Singh and Sachin Modgil

The main aim of this study is to explore the relationship between information system flexibility and dynamic capabilities to build sustainable and net zero supply chains under the…

Abstract

Purpose

The main aim of this study is to explore the relationship between information system flexibility and dynamic capabilities to build sustainable and net zero supply chains under the influence of environmental dynamism.

Design/methodology/approach

We have formulated a self-administered survey, with 359 participants contributing responses. Prior to delving into foundational assumptions, such as homoscedasticity and normality, a nonresponse bias analysis was executed. The integrity of the data, in terms of reliability and construct validity, was gauged using confirmatory factor analysis. Subsequent regression outputs corroborated all the proposed assumptions, fortifying the extant scholarly literature.

Findings

The empirical findings of this research underscore a positive correlation between Information system flexibility, dynamic capabilities and a net zero supply chain, especially in the context of environmental dynamism. Data sourced from the cement manufacturing sector support these observations. We also found that environmental dynamism moderates the relationship between data analytics capability and sustainable supply chain flexibility but does not moderate the relationship between Resource flexibility and sustainable supply chain flexibility. Additionally, this research strengthens the foundational principles of the dynamic capability theory.

Originality/value

The conceptual framework elucidates the interplay between information system flexibility, dynamic capabilities, and sustainable supply chain flexibility, emphasizing their collective contribution towards achieving sustainable chain net zero, introducing environmental dynamics as a moderating variable that augments the scholarly discourse with a nuanced layer of analytical depth.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

Open Access
Article
Publication date: 7 December 2023

Nakayima Farida, Ntayi Joseph, Namagembe Sheila, Kabagambe Levi and Muhwezi Moses

This study investigates how asset specificity, relational governance and firm adaptability relate with supply chain integration (SCI), considering selected food processing firms…

Abstract

Purpose

This study investigates how asset specificity, relational governance and firm adaptability relate with supply chain integration (SCI), considering selected food processing firms (FPFs) in Uganda.

Design/methodology/approach

This study applies a quantitative research methodology. This research draws on a sample of 103 FPFs that have been selected from a population of 345 FPFs located in Kampala district. Hypothesis testing was done using Smart PLS version 3.

Findings

Asset specificity has a significant positive relationship with SCI, and firm adaptability partially mediates this relationship. Also, there is a full mediation impact of firm adaptability on the relationship between relational governance and SCI.

Research limitations/implications

This study focused on perceptual measures to get responses from managers on the level of integration with key suppliers and customers, yet firms deal with a number of suppliers and customers.

Originality/value

This study contributes to existing literature on SCI by applying the transaction cost theory. The study focuses on the influence of asset specificity, relational governance and firm adaptability on SCI in the food processing sector. Literature on relational governance in supply chain using the transaction cost theory remains scanty. Few studies have also focused on firm adaptability as a mediator in the FPS with specific focus on Uganda, yet the sector is highly faced with uncertain events. The uncertain events in the sector and in developing countries call for adaptive strategies. Additionally, this study is the first to use firm adaptability to mediate the influence of asset specificity and relational governance on SCI more so in a developing country like Uganda where the FPS is one of the most important in the economy.

Details

Modern Supply Chain Research and Applications, vol. 6 no. 1
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 20 July 2023

Arnaldo Camuffo and Alberto Poletto

The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management…

Abstract

Purpose

The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and “S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.

Design/methodology/approach

Using the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.

Findings

For the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.

Research limitations/implications

The conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.

Practical implications

The financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..

Social implications

Compared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.

Originality/value

Differently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.

Details

International Journal of Operations & Production Management, vol. 44 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 29 December 2023

An Thi Binh Duong, Uyen My Diep, Paulo Sampaio, Maria Carvalho, Hai Thanh Pham, Thu-Hang Hoang, Dung Quang Truong and Huy Quang Truong

This research aims to specialise in the investigation of risk management for service-oriented manufacturing supply chains via two stages, highlighting its differences from…

Abstract

Purpose

This research aims to specialise in the investigation of risk management for service-oriented manufacturing supply chains via two stages, highlighting its differences from manufacturing. The research article is commenced by executing an encyclopedic review of earlier research to ascertain the distinctive traits of service-oriented manufacturing supply chains and identify prevalent risks. Secondly, an empirical study in the construction field, amongst the industry hardest struck in the mist of the COVID-19 epidemic, is conducted to thoroughly inspect the resonant effect of these risks on service-oriented manufacturing supply chain performance.

Design/methodology/approach

In this study, to validate the resonant effect mechanism, a thorough assessment is undertaken by juxtaposing theoretical model to a newly constructed comparative model that encompasses the single effects of risks on supply chain performance.

Findings

63% variance of service-oriented manufacturing supply chain performance was showcased by the resonant effect model, compared with 46.3% in the comparative model. Moreover, each risk exerts a more glaringly significant impact on supply chain performance, asserting the mechanism of the resonant influence. Another noteworthy result involves the demand risk possessing a low effect on supply chain performance, thus emphasising the superiority of service-oriented manufacturing supply chains.

Research limitations/implications

Future research endeavours should hinge on the optimal “resonant” model explosion, thereby foreseeing and alleviating worst-case scenarios to guarantee the robustness and resilience of supply chain networks.

Practical implications

Indubitably, reducing the intensity of the resonant effect revolves around lowering the coefficient of “a,” thereby restricting/eliminating the link among risks. Therefore, the suggested resonant impact model might thus serve as “a road map”. In light of the aforementioned considerations, it is advisable that supply chain executives employ supply chain management tactics namely avoidance, prediction, and postponement, but only after meticulous consideration the costs and benefits of adopting such strategies.

Originality/value

The service-oriented manufacturing supply chain features and advantages have been analysed and explained throughout the article. The data gathered during the COVID-19 pandemic is a captivating and topical point of this paper.

Details

Journal of Enterprise Information Management, vol. 37 no. 1
Type: Research Article
ISSN: 1741-0398

Keywords

Content available
Article
Publication date: 2 May 2023

Miao Hu, Shenyang Jiang and Baofeng Huo

Drawing on absorptive capacity theory, this study explores the impacts of supply visibility and demand visibility on product innovation (i.e. exploratory and exploitative…

Abstract

Purpose

Drawing on absorptive capacity theory, this study explores the impacts of supply visibility and demand visibility on product innovation (i.e. exploratory and exploitative innovation), and it examines how supplier integration, customer integration and internal integration mediate these impacts.

Design/methodology/approach

The authors employ empirical survey data from 200 Chinese manufacturers and use structural equation modeling to test the proposed relationships.

Findings

The results show that supply visibility is positively related to supplier integration and internal integration and that demand visibility is positively related to customer integration. Furthermore, only customer integration and internal integration positively relate to exploratory and exploitative innovation.

Originality/value

First, this study emphasizes that supply visibility and demand visibility are important sources of a firm's innovation performance and that supply chain integration increases focal firms' capability of exploiting information and facilitates product innovation. Second, the study shows that supply visibility and demand visibility have distinct effects on three dimensions of supply chain integration and exploratory and exploitative innovation. The study also provides significant managerial guidelines for effectively leveraging supply chain visibility and integration in the promotion of product innovation.

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