The Effect of Communication Technology Adoption on Inventory Management and Firm Performance
Main Article Content
Abstract
This study examines the effects of inventory management and communication technology adoption on firm performance in Vietnam’s manufacturing sector, addressing a critical gap in understanding their interplay in emerging markets. Using panel data from 2012 to 2023, the research employs the System Generalized Method of Moments (SGMM) estimator to analyze the dynamic relationships between inventory practices, technological investments, and financial outcomes. The results confirm that both inventory management and communication technology adoption significantly enhance firm performance, measured by Return on Assets (ROA) and Return on Equity (ROE). Moreover, the interaction between these factors amplifies their individual impacts, highlighting the importance of integrating operational and technological strategies. Specific proxies for technology adoption, including advertising expenses, intangible technology assets, and capital expenditures, reveal unique contributions to performance improvement. The findings align with the Resource-Based View and Dynamic Capabilities Framework, emphasizing the synergistic benefits of combining operational efficiency with advanced technology. This research provides theoretical and practical insights, contributing to the broader discourse on optimizing inventory practices and technological investments to achieve superior performance in dynamic and competitive environments.
Keywords
Communication technology adoption; Inventory management; Firm performance; Manufacturing sector; Vietnam
Article Details
Field of Economic (JEL Codes)
C33 - Panel Data Models • Spatio-temporal Models - Multiple or Simultaneous Equation Models • Multiple Variables, L25 - Firm Performance: Size, Diversification, and Scope - Firm Objectives, Organization, and Behavior, M15 - IT Management - Business Administration
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