The impact of JIT: a critical analysis

Decisions relating to adoption and use of just‐in‐time (JIT) are typically based on economic considerations. Experience with JIT systems indicates that certain non‐economic issues can arise which affect long‐term profitability. Suggests that stakeholder theory be used to consider JIT from a realistic and complete perspective. According to stakeholder theory, there are shared interests or interdependence between organizations and the various groups that have a stake in the firm. Thus organizations must consider their social responsibilities to their stakeholders, namely, economic, legal, ethical and philanthropic responsibilities. Discusses certain aspects of JIT that can generate ethical and philanthropic concerns related to a firm′s principal stakeholders – employers, suppliers, community, owners and customer. Concludes with a list of questions to initiate the process of identifying these types of issues for each stakeholder group.