 Unlocking the potential of inventory management: Integrating digital transformation with firm practicesYuan Fang, Qian Zhou, Xiandeng Jiang and Chao Li Economic Modelling, 2024, vol. 139, issue C Abstract: Digitalization has brought a substantial economic impact on firms' production and operation. This study utilizes firm-level data from the China National Tax Statistics Database to investigate the impact of the Broadband China Strategy on firms’ inventory levels, which are an important strategic resource for firms. We find that Internet access and development result in a sharp decrease in inventory levels, particularly in small and medium-sized enterprises. Furthermore, digital infrastructure can mitigate the negative effects of an insufficient supply of transportation infrastructure. This paper also shows that the enhancements in inventory management are attributable to the increased adoption and improved affordability of broadband Internet among firms. We discuss the role of inventory, providing a thorough understanding of the logic behind the enhanced productivity improvements brought about by digitalization. Keywords: Digital economy; Inventory; Broadband China strategy; Internet access (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:139:y:2024:i:c:s0264999324001986 DOI: 10.1016/j.econmod.2024.106841 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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