Effects of Working Capital Management on Small and Medium-sized Enterprises' Profitability from the Continuity of Supply Chain Relationships

Q3 Economics, Econometrics and Finance
Keontaek Oh, EuiBeom Jeong, Hanna Yoo
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 Design/methodology/approach: We used two Korean automotive manufacturers (Hyundai Motor Company and Kia Corporation) and SMEs of Korean automotive parts manufacturing industry's panel data in this research. The panel data model was used to investigate the impacts of CCC and its factors on ROA to test the hypotheses. For analyzing the panel data, a model of fixed effects was used in this research.
 Findings: According to the groups, the CCC shows a negative correlation with both ROA. DIO is negatively associated with ROA. DPO shows a positive correlation with ROA. In contrast, DPO shows a negative correlation with ROA. DPO shows a positive correlation with ROA. Conversely, DPO shows a negative correlation with ROA.
 Research limitations/implications: The limitations of this research show that because the analysis was made on the basis of the automotive industry in Korea, it is difficult to apply it to other industries in other countries. A comparative international analysis is therefore needed. The implications of this paper are the impacts of CCC, DIO, DRO, and DPO on profitability based on large enterprises and SMEs in aspects of the supply chain relation-ships, which previous studies did not cover sufficiently.
 Originality/value: Prior study mainly concentrated on the impacts of the CCC, DIO, DRO, and DPO on profitability based on SMEs in various industries from many countries. But this research focused on the CCC and profitability from the perspective of supply chain relationship between Korean large enterprises and SMEs.","PeriodicalId":35226,"journal":{"name":"Global Business and Finance Review","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2023-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Global Business and Finance Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.17549/gbfr.2023.28.5.51","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
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Abstract

Purpose: The object of this paper is to analyze the impacts on the CCC, DIO, DRO, DPO, which are a factor for measuring WCM and profitability (ROA) from a supply chain relationship perspective between two large Korean automotive manufacturers (Hyundai Motor Company and Kia Corporation) and SMEs in the automotive parts manu-facturing industry. Design/methodology/approach: We used two Korean automotive manufacturers (Hyundai Motor Company and Kia Corporation) and SMEs of Korean automotive parts manufacturing industry's panel data in this research. The panel data model was used to investigate the impacts of CCC and its factors on ROA to test the hypotheses. For analyzing the panel data, a model of fixed effects was used in this research. Findings: According to the groups, the CCC shows a negative correlation with both ROA. DIO is negatively associated with ROA. DPO shows a positive correlation with ROA. In contrast, DPO shows a negative correlation with ROA. DPO shows a positive correlation with ROA. Conversely, DPO shows a negative correlation with ROA. Research limitations/implications: The limitations of this research show that because the analysis was made on the basis of the automotive industry in Korea, it is difficult to apply it to other industries in other countries. A comparative international analysis is therefore needed. The implications of this paper are the impacts of CCC, DIO, DRO, and DPO on profitability based on large enterprises and SMEs in aspects of the supply chain relation-ships, which previous studies did not cover sufficiently. Originality/value: Prior study mainly concentrated on the impacts of the CCC, DIO, DRO, and DPO on profitability based on SMEs in various industries from many countries. But this research focused on the CCC and profitability from the perspective of supply chain relationship between Korean large enterprises and SMEs.
从供应链关系连续性看营运资金管理对中小企业盈利能力的影响
目的:本文的目的是从供应链关系的角度分析韩国两家大型汽车制造商(现代汽车公司和起亚汽车公司)和汽车零部件制造业中小企业之间的关系对衡量WCM和ROA的要素CCC、DIO、DRO、DPO的影响。 设计/方法/方法:本研究使用韩国两家汽车制造商(现代汽车公司和起亚汽车公司)和韩国汽车零部件制造业中小企业的面板数据。采用面板数据模型考察CCC及其影响因素对ROA的影响,检验假设。为分析面板数据,本研究采用固定效应模型。 结果:从分组来看,CCC与ROA均呈负相关。DIO与ROA呈负相关。DPO与ROA呈正相关。DPO与ROA呈负相关。DPO与ROA呈正相关。相反,DPO与ROA呈负相关。 研究局限性/启示:本研究的局限性表明,由于分析是基于韩国的汽车行业,因此很难将其应用于其他国家的其他行业。因此,需要进行国际比较分析。本文的启示是基于大企业和中小企业供应链关系方面的CCC、DIO、DRO和DPO对盈利能力的影响,这是以往研究没有充分涵盖的。 原创性/价值:先前的研究主要集中在各国不同行业中小企业的CCC、DIO、DRO和DPO对盈利能力的影响。但本研究主要是从韩国大企业与中小企业之间供应链关系的角度来研究CCC与盈利能力的关系。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Global Business and Finance Review
Global Business and Finance Review Economics, Econometrics and Finance-Finance
CiteScore
1.20
自引率
0.00%
发文量
37
审稿时长
16 weeks
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