Managing risk concerns with ordered backlogs in the semiconductor industry: An empirical study

Ashutosh Singh, Surajit Bag, Tsan-Ming Choi and Surender Munjal

International Journal of Production Economics, 2024, vol. 275, issue C

Abstract: Today, the semiconductor industry is integral to the functionality of many critical goods and processes that are highly valued. The increasing demand across various semiconductor-related industries has correspondingly amplified the risks faced by firms within this sector. In this study, we empirically explore the potential of ordered backlogs as a means to mitigate the risks confronting semiconductor firms. Utilizing a dataset comprising publicly traded semiconductor firms in the USA, over a duration from 1998 to 2021, we quantitatively validate our hypotheses. Our findings reveal that a substantial volume of ordered backlogs is indeed correlated to a diminished level of firm risk. However, it is important to note that this risk-mitigating effect is lessened as the marketing and research intensities of these firms escalate. Moreover, we observe that the advantageous impact of ordered backlogs in risk reduction is more subdued in large workforce firms, whereas the presence of a sizable top management team aids in lessening the impact of ordered backlogs on risk. These managerial insights are invaluable in advancing both theoretical understanding and managerial practices within the realm of the semiconductor industry.

Keywords: Ordered backlogs; Risk mitigation; Semiconductor firms; Firm-related factors; Empirical Studies (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092552732400183X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:275:y:2024:i:c:s092552732400183x

DOI: 10.1016/j.ijpe.2024.109326

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().