Spatial patterns of adoption of just-in-time manufacturing

Abstract

In this paper we study the spatial pattern of Just-in-Time (JIT) adoption for a sample of medium-sized and large Spanish manufacturing firms. The recent literature has shown that location plays a significant role in the adoption of advanced technologies. We argue that the particular role location characteristics play for technology adoption depends on the type of technology. JIT differs from other advanced manufacturing technologies because it relates directly to the spatial coordination of a firms’ internal production organisation with its external productive environment and depends on the quality of the transport system. Our results confirm the distinctive role of location for JIT adoption even after controlling for industry and plant-specific differences. We find that JIT adoption is greater in smaller cities but with higher accessibility indicating that urban congestion in larger urban areas likely reduces the benefits that firms may obtain from JIT implementation.