The effect of communication technology adoption on inventory management and firm performance

Nguyen Van Bay1, , Nguyen Thanh Cuong1, Phan Thanh Hai2
1 Nha Trang University, Vietnam
2 Duy Tan University, Vietnam
Article PDF Appendix PDF
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Date Published: 25/03/2026
Online Published: 25/11/2025
Section: Finance, Banking, Accounting, and Auditing
DOI: https://doi.org/10.52932/jfmr.v4i1en.846

Main Article Content

Abstract

The study examines the effect of inventory management and the adoption of communication technology on the performance of firms in Vietnam's manufacturing industry and attempts to fill a research gap regarding the impact of these two variables on each other in emerging economies. In order to examine the effect, panel data from 2013 to 2023 have been used and SGMM estimator has been utilized to capture the dynamics between the investigated variables. The study shows that the adoption of inventory management and the use of communication technology positively affect the performance of firms as measured by ROA and ROE. Besides, there is an interaction between these variables which increases the effect of each variable on firm performance. The study further shows that some of the proxies for the adoption of communication technology (advertising expense, value of intangible technology asset, and capital expenditure) contribute significantly to performance improvement. The results are consistent with Resource Based View and Dynamic Capabilities Theory emphasizing the role of resource integration.

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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How to Cite
Nguyen, V. B., Nguyen, T. C., & Phan, T. H. (2025). The effect of communication technology adoption on inventory management and firm performance. Journal of Finance - Marketing Research, 4(1en), 34-49. https://doi.org/10.52932/jfmr.v4i1en.846