Does just‐in‐time adoption have an impact on corporate innovation: evidence from China

Ziyang Li, Qianwei Ying, Wu Yan and Chenjun Fan

Accounting and Finance, 2022, vol. 62, issue S1, 1599-1635

Abstract: The just‐in‐time (JIT) system has drawn wide concern as a method of cost management. This paper investigates the effect of JIT adoption on corporate innovation. Using unique data manually collected of Chinese listed firms from 2007 to 2019, we find JIT adoption can promote innovation investment and output. Further evidence shows that customer and supplier concentration as well as market monopoly have moderate effect on the relationship of JIT adoption and corporate innovation. This paper makes a contribution to literature by identifying the positive effect of JIT on corporate innovation and provide strong convincing evidence to support the adoption of JIT.

Date: 2022
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https://doi.org/10.1111/acfi.12833

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