Last modified: 2019-05-07
Abstract
Purpose - – the purpose of the research paper is to observe and analyse how major companies in the the Baltic States behave during the last business cycle in terms of inventory management in order to identify different inventory management strategies.
Research methodology –- statistical analysis from year 2007 to year 2012 encompassing 1387 largest businesses in the Baltics by their operating revenue. In the research paper clustering and mainly comparison methods are applied.
Findings – research paper shows that major companies in Baltic States mainly behave cyclically and there has been little evidence of industries behaving counter-cyclically during anticipation of recession however there has been some indication of industries that increase inventories in anticipation of recovery mainly in Latvia.
Research limitations – time, geography and scope limitations in terms of financial indicator that in the future research by the author needs to be addressed in order to provide a holistic view on the issue.
Research implications –- research paper demonstrates that various industries adapt different strategies during the business cycle and there are differences both on country and industry levels.
Originality –- first paper that analyses in-scope major Baltic state companies behaviours during the last business cycle on both country and industry level.