Just in time and competitive advantage: understanding their linkages and impact on operational performance

  • Ramlawati Ramlawati School of Economics, STIE Bongaya YPBUP Makassar
Keywords: Just in time, competitive advantage, operational performance


This study aims to analyze the influence of Just in Time on competitive advantage and operational performance. This research was carried out on a manufacturing company in Makassar Industrial Area, a sample of 40 respondents consisting of marketing managers, production managers and financial managers. The results of data analysis using Partial Least Square (PLS) provide evidence that Just in Time has a significant effect on competitive advantage and operational performance


. Alshbiel, SO, & Al-Awaqleh, QA (2012). JIT production system and its effect on achieving industrial shareholding companies in Jordan. Interdisciplinary Journal of Contemporary Research In Business October, 4 (6).

. Ansari, A., & Modarress, B. (1988). JIT purchasing as a quality and productivity center. The International Journal of Production Research, 26 (1), 19-26. https://www.tandfonline.com/doi/abs/10.1080/00207548808947838

. Brah, SA, & Ying Lim, H. (2006). The effects of technology and TQM on the performance of logistics companies. International Journal of Physical Distribution & Logistics Management, 36 (3), 192-209. https://doi.org/10.1108/09600030610661796

. Carton, RB (2004). Measuring organizational performance: An exploratory study (Doctoral dissertation, University of Georgia).

. Carton, RB, & Hofer, CW (2006). Measuring organizational performance: Metrics for entrepreneurship and strategic management research. Edward Elgar Publishing.

. Chen, YS, James Lin, MJ, & Chang, CH (2006). The influence of intellectual capital on new product development performance-the manufacturing companies of Taiwan as an example. Total Quality Management and Business Excellence, 17 (10), 1323-1339. https://doi.org/10.1080/14783360601058979

. Chi, T., Kilduff, PP, & Gargeya, VB (2009). Alignment between business environment characteristics, competitive priorities, supply chain structures, and firm business performance. International Journal of productivity and performance management, 58 (7), 645-669. https://doi.org/10.1108/17410400910989467

. Chin Lin, Y., & Heng Tsai, P. (2009). The impact of a global logistics integration system on localization service and business competitive advantage. European Business Review, 21 (5), 418-437. https://doi.org/10.1108/09555340910986655

. Christiansen, T., Berry, WL, Bruun, P., & Ward, P. (2003). A mapping of competitive priorities, manufacturing practices, and operational performance in groups of Danish manufacturing companies. International Journal of Operations & Production Management, 23 (10), 1163-1183. https://doi.org/10.1108/01443570310496616

. Chyr, F., Lin, TM, & Ho, CF (1990). Comparison between just-in-time and EOQ systems. Engineering Costs and Production Economics, 18 (3), 233-240. https://doi.org/10.1016/0167-188X(90)90125-2

. Claycomb, C., Dröge, C., & Germain, R. (1999). The effect of just-in-time with customers on organizational design and performance. The International Journal of Logistics Management, 10 (1), 37-58. https://doi.org/10.1108/09574099910805923

. Cua, KO, McKone, KE, & Schroeder, RG (2001). Between implementation relationships of TQM, JIT, and TPM and manufacturing performance. Journal of operations management, 19 (6), 675-694. https://doi.org/10.1016/S0272-6963(01)00066-3

. Danese, P., Romano, P., & Bortolotti, T. (2012). JIT production, JIT supply and performance: investigating the moderating effects. Industrial Management & Data Systems, 112 (3), 441-465. https://doi.org/10.1108/02635571211210068

. De Toni, A., & Nassimbeni, G. (2000). Just-in-time purchasing: an empirical study of operational practices, supplier development and performance. Omega, 28 (6), 631-651. https://doi.org/10.1016/S0305-0483(00)00016-5

. F. Hair Jr, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26 (2), 106-121. https://doi.org/10.1108/EBR-10-2013-0128

. Fawcett, SE, & Birou, LM (1993). Just-in-time sourcing techniques: Current state of adoption. Production and Inventory Management Journal, 34 (1), 18.

. Fazel, F. (1997). A comparative analysis of inventory costs of JIT and EOQ purchasing. International Journal of Physical Distribution & Logistics Management, 27 (8), 496-504. https://doi.org/10.1108/09600039710182680

. Fazel, F., Fischer, KP, & Gilbert, EW (1998). JIT purchasing vs. EOQ with a price discount: An analytical comparison of inventory costs. International Journal of Production Economics, 54 (1), 101-109. https://doi.org/10.1016/S0925-5273(97)00130-8

. Flynn, BB, Sakakibara, S., & Schroeder, RG (1995). Relationship between JIT and TQM: practices and performance. Academy of management Journal, 38 (5), 1325-1360. https://doi.org/10.5465/256860

. Gaspersz, Vincent. (2005). Integrated Performance Management System Balanced Scorecard With Six Sigma For Business Organizations and Government. Jakarta: PT Gramedia Pustaka Utama

. Gaspersz, Vincent. (2008). Lean Six Sigma. Jakarta: PT Gramedia Pustaka Utama

. Germain, R., Dröge, C., & Daugherty, PJ (1994). The effect of just-in-time selling on organizational structure: an empirical investigation. Journal of Marketing Research, 471-483. https://doi.org/10.2307/3151877

. Ghozali, I. (2011). Structural Equation Modeling Alternative Methods with Partial Least Square PLS.

. Golhar, DY, & Stamm, CL (1991). The just-in-time philosophy: a literature review. The International Journal of Production Research, 29 (4), 657-676. https://doi.org/10.1080/00207549108930094

. González-Benito, J., & Spring, M. (2000). JIT purchasing in Spanish auto components industry-implementation patterns and perceived benefits. International Journal of Operations & Production Management, 20 (9), 1038-1061. https://doi.org/10.1108/01443570010339145

. Hadioetomo, H. (2009). Effect of JIT Implementation on Performance and Competitive Advantages of Manufacturing Companies. ACCOUNTING STUDY, 4 (2), 104-113.

. Hayes, RH, & Schmenner, RW (1978). How should you organize manufacturing. Harvard Business Review, 56 (1), 105-118.

. Heizer, J. & Render, B. (2005). Flexible Version: Operation Management, 7th edition, New Jersey: Prentice Hall.

. Inman, RA, Sale, RS, Green Jr, KW, & Whitten, D. (2011). Agile manufacturing: relation to JIT, operational performance and firm performance. Journal of Operations Management, 29 (4), 343-355. https://doi.org/10.1016/j.jom.2010.06.001

. Kannan, VR, & Tan, KC (2005). Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance. Omega, 33 (2), 153-162. https://doi.org/10.1016/j.omega.2004.03.012

. Kotler, Philip & Armstrong Gerry. (2003). Service Marketing Management. Salemba Empat: Jakarta

. Lakhal, L., Pasin, F., & Limam, M. (2006). Quality management practices and their impact on performance. International Journal of Quality & Reliability Management, 23 (6), 625-646. https://doi.org/10.1108/02656710610672461

. Leavy, B. (1994). Two strategic perspectives on the buyer-supplier relationship. Production and Inventory Management Journal, 35 (2), 47.

. Lee, SM, & Ansari, A. (1985). Comparative analysis of Japanese just-in-time purchasing and traditional US purchasing systems. International Journal of Operations & Production Management, 5 (4), 5-14. https://doi.org/10.1108/eb054744

. Li, S., Ragu-Nathan, B., Ragu-Nathan, TS, & Rao, SS (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34 (2), 107-124. https://doi.org/10.1016/j.omega.2004.08.002

. Mazanai, M. (2012). Just-in-time impact (JIT) inventory system on efficiency, quality and flexibility among manufacturing sectors, small and medium enterprises (SMEs) in South Africa. African Journal of Business Management, 6 (17), 5786-5791. https://doi.org/10.5897/AJBM12.148

. Meylianti, B. & Mulia, F. (2009). Effect of JIT (Just In Time) and TQM (Total Quality Management) Implementation on Delivery Performance in the Automotive Industry in Indonesia. Journal of Applied and Theory Management | Journal of Theory and Applied Management, 2 (2).

. Moori, RG, Pescarmona, A., & Kimura, H. (2013). Lean manufacturing and business performance in Brazilian firms. Journal of Operations and Supply Chain Management, 6 (1), 91-105.

. O'Neal, CR (1987). The buyer-seller linkage in a just-in-time environment. Journal of Purchasing and Materials Management, 23 (1), 7-13. https://doi.org/10.1111/j.1745-493X.1987.tb00174.x

. Porter, ME (1990). New global strategies for competitive advantage. Planning Review, 18 (3), 4-14. https://doi.org/10.1108/eb054287

. Ramarapu, NK, Mehra, S., & Frolick, MN (1995). A comparative analysis and review of JIT "implementation" research. International Journal of Operations & production management, 15 (1), 38-49. https://doi.org/10.1108/01443579510077188

. Sakakibara, S., Flynn, BB, Schroeder, RG, & Morris, WT (1997). The impact of just-in-time manufacturing and its infrastructure on manufacturing performance. Management Science, 43 (9), 1246-1257. https://doi.org/10.1287/mnsc.43.9.1246

. Schonberger, RJ, & Gilbert, JP (1983). Just-in-time purchasing: a challenge for US industry. California Management Review, 26 (1), 54-68. https://doi.org/10.2307/41165050

. Simamora, Bilson. (2002). Guide to Consumer Behavior Research. Jakarta: PT Gramedia Pustaka Utama

. Sjahruddin, H., & Sudiro, A. A. (2013). Organizational justice, organizational commitment and trust in manager as predictor of organizational citizenship behavior. Interdiciplinary J. of contemporary Res. Bus.(IJCRB), 4(12), 133-141.

. Slack, N., Lewis, M., & Bates, H. (2004). The two worlds of operations management research and practice: can they meet, should they meet? International Journal of Operations & Production Management, 24 (4), 372-387.

. Staughton, R., & Johnston, R. (2005). Operational performance gaps in business relationships. International Journal of Operations & Production Management, 25 (4), 320-332. https://doi.org/10.1108/01443570510585525

. Stevenson, J William. (2002). Operation Management. NewYork: McGraw Hill

. Tracey, M., & Vonderembse, MA (2000). Building supply chains: a key to enhancing manufacturing performance. American Journal of Business, 15 (2), 11-20. https://doi.org/10.1108/19355181200000007

. Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in research strategies: A comparison of approaches. Academy of Management Review, 11 (4), 801-814. https://doi.org/10.5465/amr.1986.4283976

. Voss, CA, Åhlström, P., & Blackmon, K. (1997). Benchmarking and operational performance: some empirical results. International Journal of Operations & Production Management, 17 (10), 1046-1058. https://doi.org/10.1108/01443579710177059

. Waters-Fuller, N. (1995). Just-in-time purchasing and supply: a review of the literature. International journal of operations & production management, 15 (9), 220-236. https://doi.org/10.1108/01443579510099751

. Wook Kim, S. (2006). The supply chain integration effect on the alignment between corporate competitive capability and supply chain operational capability. International Journal of Operations & Production Management, 26 (10), 1084-1107. https://doi.org/10.1108/01443570610691085

How to Cite
Ramlawati, R. (2018). Just in time and competitive advantage: understanding their linkages and impact on operational performance. Archives of Business Research, 6(8). https://doi.org/10.14738/abr.68.5041