JIT Adoption and Corporate Innovation

JIT (Just-in-time), as a classical operation management system, has made significant contributions to the manufacturing and financial performance of enterprises. Moreover, the adoption of JIT is conducive to the increase of retained earnings of enterprises and becomes a reservoir and buffer pool for corporate innovation. Besides, we employ a double-fixed panel-date regression model to analyze the database of 9051 observations to find the relationship between JIT adoption and corporate innovation. Then we divide patents into three types to study the impact of JIT on the type of corporate innovation. Moreover, we find that JIT adoption promotes the corporate innovation investment and innovation output. When we use different types of patent to test our hypothesis, this finding also holds. Then the sample has been narrowed and the results remain the same. JIT adoption is beneficial to the innovation of enterprises Also, we find an exciting event that JIT adoption influences the number of short-term patent grants. Our research provides some convincing evidence to support companies in implementing JIT.