Linking industrial agglomeration and manufacturers inventory performance: the moderating role of firm size and enterprise status in the supply chain
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 6 May 2020
Issue publication date: 23 February 2021
Abstract
Purpose
From the intra- and inter-regional dimensions, this paper investigates the linkage between industrial agglomeration and inventory performance, and further demonstrates the moderating role of firm size and enterprise status in the supply chain on this linkage.
Design/methodology/approach
Using a large panel dataset of Chinese manufacturers in the Yangtze River Delta for the period from 2008 to 2013, this study employs the method of spatial econometric analysis via a spatial Durbin model (SDM) to examine the effects of industrial agglomeration on inventory performance. Meanwhile, the moderation model is applied to examine the moderating role of two firm-level heterogeneity factors.
Findings
At its core, this research demonstrates that industrial agglomeration is associated with the positive change of inventory performance in the adjacent regions, whereas that in the host region as well as in general does not significantly increase. Additionally, both firm size and enterprise status in the supply chain can positively moderate these effects, except for the moderating role of firm size on the positive spillovers.
Practical implications
In view of firm heterogeneity, managers should take special care when matching their abilities of inventory management with the agglomeration effects. Firms with a high level of inventory management are suited to stay in an industrial cluster, while others would be better in the adjacent regions to enhance inventory performance.
Originality/value
This paper is the first to systematically analyze the effects of industrial agglomeration on inventory performance within and across clusters, and confirm that these effects are contingent upon firm size and enterprise status in the supply chain. It adds to the existing literature by highlighting the spatial spillovers from industrial clusters and enriching the antecedents of inventory leanness.
Keywords
Acknowledgements
The authors declare no conflict of interest regarding the publication of this paper. The research was supported by the National Natural Science Foundation of China (No: 71873094).
Citation
Wang, X., Lin, Y. and Shi, Y. (2021), "Linking industrial agglomeration and manufacturers inventory performance: the moderating role of firm size and enterprise status in the supply chain", Journal of Manufacturing Technology Management, Vol. 32 No. 2, pp. 448-484. https://doi.org/10.1108/JMTM-11-2019-0417
Publisher
:Emerald Publishing Limited
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