JIT production, JIT supply and performance: investigating the moderating effects

Purpose – The purpose of this paper is to study whether just in time (JIT) supply practices interact with JIT production practices by positively moderating the relationship between JIT production and efficiency/delivery performance. Design/methodology/approach – In total, six hypotheses are developed on the relationships between JIT production, JIT supply, efficiency and delivery performance. The hypotheses are tested through a hierarchical regression analysis using data from a sample of 207 manufacturing plants. Findings – JIT production practices positively affect both efficiency and delivery. JIT supply practices positively moderate the relationship between JIT production and delivery, while there is no significant moderating effect when considering the impact on efficiency. The role of JIT supply as moderator is twofold. On the one hand, it strengthens the positive impact of JIT production on delivery through a complementary effect. On the other hand, low levels of adoption of JIT supply practices can hinder and – for extremely low levels – cancel the impact of JIT production practices on delivery. Practical implications – When efficiency is the priority, companies should direct their efforts on JIT production. However, when their aim is to maximize delivery, they should invest on both JIT production and JIT supply. Results found advise managers to implement some JIT supply practices during the early stages of JIT production programs, because the total absence of any JIT linkages with suppliers can limit JIT production benefits on delivery performance. Originality/value – This study elaborates on the mutual influence between JIT production and JIT supply practices and demonstrates that they have a different weight and contribute to different aspects of performance improvement. This can help managers involved in JIT implementation to better allocate scarce resources.