AERONAUTICS AND SPACE TECHNOLOGIES’ INVENTORY EFFICIENCY, INVENTORY PRODUCTIVITY AND INVENTORY RESPONSIVENESS VS. FINANCIAL PERFORMANCE

In this paper the relationship between aeronautics and space technology companies’ inventory management performances and companies’ financial performances are studied by conducting empirical analyses. Specifically, inventory efficiency, inventory productivity and inventory responsiveness are studied in order to assess the effect of inventory management performance on company competitive outperformance. A time-series model, that takes into account of some inventory performance indicators and financial performance measures, is developed and tested using data for 230 publicly listed U.S. aeronautics and space technology companies for the 32-year period, 1985 to 2017. This study utilizes firm financial data, acquired from the Standard and Poor’s COMPUSTAT database using Wharton Research Data Services (WRDS). The implications of the results on the inventory management implementation and directions for future research are provided.