A1 Journal article (refereed)
CO-Evolution Between CCC-Driven Cash Flow Management and Transformation of R&D : Amazon’S Endeavor (2019)


Tou, Yuji; Watanabe, Chihiro; Neittaanmäki, Pekka (2019). CO-Evolution Between CCC-Driven Cash Flow Management and Transformation of R&D : Amazon’S Endeavor. International Journal of Managing Information Technology, 11 (3), 1-20. DOI: 10.5121/ijmit.2019.11301 http://aircconline.com/ijmit/V11N3/11319ijmit01.pdf


JYU authors or editors


Publication details

All authors or editors: Tou, Yuji; Watanabe, Chihiro; Neittaanmäki, Pekka

Journal or series: International Journal of Managing Information Technology

ISSN: 0975-5926

eISSN: 0975-5586

Publication year: 2019

Volume: 11

Issue number: 3

Pages range: 1-20

Publisher: AIRCC Publishing Corporation

Publication country: India

Publication language: English

DOI: https://doi.org/10.5121/ijmit.2019.11301

Persistent website address: http://aircconline.com/ijmit/V11N3/11319ijmit01.pdf

Publication open access: Openly available

Publication channel open access: Open Access channel

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/66173


Abstract

Amazon became the world R&D leader in 2017 by rapidly increasing R&D investment. The company’s extremely large amount of R&D funds is the result of an ample free cash flow generated by sophisticated cash conversion cycle (CCC) management. Increased R&D induced business advancement and lean cost structure construction leading to further increase in cash flow which has stimulated interaction between vendors, customers, and Amazon via the Amazon marketplace. Activated interaction accelerated CCC advancement, a subsequent free cash flow increase, and user-driven innovation, thus accelerated the transformation of routine and periodic alteration activities into significant improvement simultaneously. All of these components function together as a consolidated sophisticated machine.

In light of the increasing concern to R&D resources development without the dilemma of a productivity decline that most digital economies are now confronting, this paper demonstrated the above hypothetical view.

An intensive empirical analysis focusing on the development trajectory of Amazon’s techno-financing system over a period from 1997 to 2018 was conducted.

An insightful suggestion to neo open innovation that fuses financing management and R&D management was thus provided.


Keywords: research and development operations; investements; cash flow; new economy

Free keywords: research; development; transformation; cash flow management; cash conversion cycle; Amazon


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Ministry reporting: Yes

Reporting Year: 2019

JUFO rating: 0


Last updated on 2021-30-04 at 15:48