The Impact of Just-In-Time Inventory Practices on Operational Performance: An Evidence from the Global Fast-Food Brands Restaurants in Karachi

Abstract

Purpose: This study examined the impact of Just-in-Time (JIT) practices on the operational performance of global fast-food brands in the city of Karachi, Pakistan. 

Methodology: A sample of 300 supply chain management professionals working in global fast food brand stores was selected using a non-probabilistic, purposive sampling technique. This measure was chosen to ensure that participants had specific skills relevant to the main focus of the study. In this study, reliability was used to evaluate the consistency and stability of the constructs. Regression analysis was conducted to examine the relationship between independence and success and to test the hypothesis.

Findings: Regression analysis revealed a positive relationship between JIT operations, purchasing, sales and performance of global fast-food restaurants in Karachi, Pakistan. Specifically, JIT performance explained 79% of the variance in performance, JIT purchasing explained 43% of the variance, and JIT sales explained 9.3% of the variance. These findings highlight the critical role of just-in-time production in improving operational and organizational performance in the fast-food restaurant industry.

Research Implications: Global fast-food brand restaurants always need to have a better understanding of the consumer’s perceptions and consumers demands and better-managed inventories; therefore, the JIT practice impacts their operational performance in the city of Karachi.

Originality: JIT has significant and positive influences on the operational and competitive performance of the restaurants of global fast-food brands.