Effectiveness of vendor-managed inventory in the electronics industry: determinants and outcomes

This study used the extended limits-to-value model to frame four research hypotheses related to the effects of organizational size, employee involvement, and logistics integration on the expected and perceived values of vendor-managed inventory (VMI) as implemented in the electronics industry. Most of the findings supported the hypotheses. Specifically, that supply chain members working for organizations with high levels of employee involvement and logistics integration were more likely to realize the potential values of VMI. However, contrary to the notion that large organizations have more slack resources in technology adoption and implementation, VMI benefited small organizations most.