Impact of JIT on organizational performance of U.S. firms

Abstract

SUMMARY This empirical study utilized concrete financial/accounting data concerning measures of organizational performance, as reported in Standard & Poors Compustat, to examine the impact of Just-in-Time production on organizational performance. Matching groups of JIT implementing and non-implementing firms were formed from a cross sectional survey, and a comparative analysis was made for the two groups. The result of the study shows that JIT firms have not achieved better organizational performance in terms of sales in $/employee, operating profit margin, and return on investment than non-JIT firms; but achieved better performances in terms of finished goods inventory turnover, raw materials inventory turnover, and work in process inventory turnover. In addition, this study ascertained that JIT firms have achieved much better performance in terms of quality and flexibility than non-JIT firms.

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