Research and development intensity, inventory leanness, and firm performance

Md Reiazul Haque, Md Abubakar Siddique, Amit Kumar

This study investigates whether a firm's research and development (R&D) intensity influences its choice of an inventory leanness strategy and how R&D intensity and inventory leanness collectively impact its performance. This study documents two findings in a dataset comprising 43,634 observations within the U.S. manufacturing sector from 1992 to 2019. Firstly, higher R&D intensity is associated with an increased likelihood of implementing an inventory leanness strategy. Secondly, adopting such a strategy helps firms mitigate the adverse effects of R&D spending on financial performance and generate additional market value. The results imply that managers in firms with high R&D spending strategically adopt inventory leanness to navigate uncertainties associated with realizing returns from their innovation activities.

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Year of publication:	2024
Authors:	Haque, Md Reiazul ; Siddique, Md Abubakar ; Kumar, Amit
Published in:	Journal of open innovation : technology, market, and complexity. - Basel : MDPI, ISSN 2199-8531, ZDB-ID 2832108-X. - Vol. 10.2024, 2, Art.-No. 100263, p. 1-7
Subject:	Innovation \| R&D \| Financial performance \| Efficiency \| Cost savings \| Lean strategy \| Market performance \| Unternehmenserfolg \| Firm performance \| Lean Management \| Lean management \| Lean Production \| Lean production \| Industrieforschung \| Industrial research \| Performance-Messung \| Performance measurement