MANAGEMENT Association Supply Chain Performance Operating Between Glitches and

  • Hendricks B
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Abstract

This paper empirically documents the association between supply chain glitches and operating performance. The results are based on a sample of 885 glitches announced by publicly traded firms. In the year leading up to the announcement, the control-adjusted mean percent changes in operating income, return on sales, and return on assets for the sample firms are -107%, -114%, and -92%, respectively. During this same period, the control-adjusted changes in the level of return on sales and return on assets are -13.78% and -2.32%, respectively. Relative to controls, firms that experience glitches report on average 6.92% lower sales growth, 10.66% higher growth in cost, and 13.88% higher growth in inventories. It is found that it does not matter who caused the glitch, what the reason was for the glitch, or what industry a firm belongs to - glitches are associated with negative operating performance across the board.

Author-supplied keywords

  • 2003
  • 3 weeks for 2
  • accepted by william s
  • authors 1 month and
  • empirical analysis
  • history
  • lovejoy
  • management
  • operating performance
  • operations and supply chain
  • paper was with the
  • received july 9
  • revisions
  • supply chain glitches
  • this

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Authors

  • B Hendricks

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