The role of national information technology investments in inventory efficiency and financial performance: evidence from manufacturing industry in Germany

Abstract

This study investigates the role of national information technology (IT) investments in inventory efficiency and financial performance. A total of 153 publicly listed manufacturing firms in Germany are examined for the years 2010 through 2019. The findings show that national IT investments do not considerably impact firm-level financial performance and inventory efficiency. Firm-level inventory efficiency exerts a considerable impact on profitability. Furthermore, market concentration and firms' financial leverage are driving forces behind financial performance of firms. Also, market concentration moderates the proposed relationships on firms' profit margins.