Table 3 Lean inventory strategy and firm... | Emerald Publishing

Table 3

Lean inventory strategy and firm profitability: an information-theoretic approach to check the robustness of the model against nonlinearity

	ROA
	PM1	PM2	PM3	PM4	PM5	PM6	PM7	PM8
Size	2.659	2.736	2.932	2.779	2.71	2.889^*	2.871^*	2.776
Size	(1.55)	(1.511)	(1.639)	(1.492)	(1.525)	(1.457)	(1.451)	(1.491)
Store growth	0.013	0.016	0.012	0.014	0.015	0.015	0.015	0.015
Store growth	(0.022)	(0.022)	(0.023)	(0.021)	(0.022)	(0.021)	(0.021)	(0.021)
Sales growth	0.198^**	0.191^**	0.239^**	0.202^**	0.195^**	0.199^**	0.2^**	0.2^**
Sales growth	(0.035)	(0.035)	(0.042)	(0.035)	(0.035)	(0.036)	(0.036)	(0.035)
PPE	0.602	0.76	0.571	0.795^*	0.647	0.81	0.808^*	0.831^*
PPE	(0.387)	(0.401)	(0.476)	(0.395)	(0.401)	(0.414)	(0.412)	(0.423)
ADVT	−0.272	−0.291	−0.279	−0.275	−0.299	−0.291	−0.291	−0.287
ADVT	(0.362)	(0.362)	(0.421)	(0.362)	(0.364)	(0.364)	(0.365)	(0.364)
Number of stores	−0.004	−0.007	−0.011	−0.006	−0.007	−0.008	−0.008	−0.008
Number of stores	(0.012)	(0.011)	(0.014)	(0.012)	(0.011)	(0.012)	(0.012)	(0.012)
IT	−0.035		−0.033	−0.057^*	−0.045	−0.022	−0.02	−0.008
IT	(0.026)		(0.073)	(0.026)	(0.065)	(0.067)	(0.068)	(0.074)
ELI	3.066^*	3.511^**		2.359	3.46^**	2.652^*	2.644^*	2.836^*
ELI	(1.224)	(1.05)		(1.244)	(1.02)	(1.047)	(1.039)	(1.205)
IT × ELI				0.089^*		0.09^*	0.09^*	0.048
IT × ELI				(0.04)		(0.038)	(0.039)	(0.103)
ELI²		−0.517			−0.546	−0.436	−0.413	−0.44
ELI²		(0.717)			(0.701)	(0.643)	(0.81)	(0.653)
IT²			0		0	−0.001	−0.001	−0.001
IT²			(0.001)		(0.001)	(0.001)	(0.001)	(0.001)
IT × ELI²							−0.003
IT × ELI²							(0.035)
ELI × IT²								0.001
ELI × IT²								(0.002)
Within R-squared	0.212	0.213	0.156	0.224	0.216	0.227	0.227	0.228
N	807	807	807	807	807	807	807	807
AIC	4429.6	4427.9	4484.3	4419.5	4429	4419.7	4421.6	4421.2
VIF max	1.372	1.404	6.135	1.375	6.195	6.644	6.861	11.171
D	10.1	8.4	64.8	0	9.5	0.2	2.1	1.7

	ROA
	PM1	PM2	PM3	PM4	PM5	PM6	PM7	PM8
Size	2.659	2.736	2.932	2.779	2.71	2.889^*	2.871^*	2.776
Size	(1.55)	(1.511)	(1.639)	(1.492)	(1.525)	(1.457)	(1.451)	(1.491)
Store growth	0.013	0.016	0.012	0.014	0.015	0.015	0.015	0.015
Store growth	(0.022)	(0.022)	(0.023)	(0.021)	(0.022)	(0.021)	(0.021)	(0.021)
Sales growth	0.198^**	0.191^**	0.239^**	0.202^**	0.195^**	0.199^**	0.2^**	0.2^**
Sales growth	(0.035)	(0.035)	(0.042)	(0.035)	(0.035)	(0.036)	(0.036)	(0.035)
PPE	0.602	0.76	0.571	0.795^*	0.647	0.81	0.808^*	0.831^*
PPE	(0.387)	(0.401)	(0.476)	(0.395)	(0.401)	(0.414)	(0.412)	(0.423)
ADVT	−0.272	−0.291	−0.279	−0.275	−0.299	−0.291	−0.291	−0.287
ADVT	(0.362)	(0.362)	(0.421)	(0.362)	(0.364)	(0.364)	(0.365)	(0.364)
Number of stores	−0.004	−0.007	−0.011	−0.006	−0.007	−0.008	−0.008	−0.008
Number of stores	(0.012)	(0.011)	(0.014)	(0.012)	(0.011)	(0.012)	(0.012)	(0.012)
IT	−0.035		−0.033	−0.057^*	−0.045	−0.022	−0.02	−0.008
IT	(0.026)		(0.073)	(0.026)	(0.065)	(0.067)	(0.068)	(0.074)
ELI	3.066^*	3.511^**		2.359	3.46^**	2.652^*	2.644^*	2.836^*
ELI	(1.224)	(1.05)		(1.244)	(1.02)	(1.047)	(1.039)	(1.205)
IT × ELI				0.089^*		0.09^*	0.09^*	0.048
IT × ELI				(0.04)		(0.038)	(0.039)	(0.103)
ELI²		−0.517			−0.546	−0.436	−0.413	−0.44
ELI²		(0.717)			(0.701)	(0.643)	(0.81)	(0.653)
IT²			0		0	−0.001	−0.001	−0.001
IT²			(0.001)		(0.001)	(0.001)	(0.001)	(0.001)
IT × ELI²							−0.003
IT × ELI²							(0.035)
ELI × IT²								0.001
ELI × IT²								(0.002)
Within R-squared	0.212	0.213	0.156	0.224	0.216	0.227	0.227	0.228
N	807	807	807	807	807	807	807	807
AIC	4429.6	4427.9	4484.3	4419.5	4429	4419.7	4421.6	4421.2
VIF max	1.372	1.404	6.135	1.375	6.195	6.644	6.861	11.171
D	10.1	8.4	64.8	0	9.5	0.2	2.1	1.7

Note(s): Standard errors are in parentheses. Cluster-robust standard errors are used. PM = plausible model(s). ^**p < 0.01; ^*p < 0.05

Source(s): Authors' own creation