Uncovering the hidden roots: the tapestry of working capital efficiency in Indian MSMEs

IF 3.8 Q2 MANAGEMENT

Journal of Global Operations and Strategic Sourcing Pub Date : 2023-08-08 DOI:10.1108/jgoss-04-2023-0029

D. K. Tripathi, S. Chadha, Ankita Tripathi

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引用次数: 0

Abstract

Purpose Working capital efficiency (WCE) is crucial for the sustainability of both large and small firms. This study aims to use the sample of micro, small and medium-sized enterprises (MSMEs) in India and tries to understand the critical determinants of WCE. Design/methodology/approach Using a fixed effect panel data model on a sample of 578 MSMEs (59 micro, 226 medium and 296 small firms), this study explores the relationship between the predictors of WCE. Additionally, the study adopted two metrics for measuring WCE among each type of firm (micro, small and medium). Findings Several firm-specific variables, including leverage (lever), firm age (AGE), firm size (Fsiz), profitability (Prof), extended payment terms (EPT), human capital (HCap), asset turnover ratio (ATR), reverse factoring (RF) and firm growth (FG), have a significant effect on working capital management efficiency (WCE). In contrast, tangibility (Tangib) and salary expenses (Sal) had an insignificant effect on working capital management efficiency. Research limitations/implications The study is based on secondary data. Future studies may incorporate some primary data, which will facilitate qualitative analysis. Originality/value The studies explore the relationship between WCE and expenses in HCap, EPT, RF and Sal as the predictors for WCE, which was not studied earlier in MSMEs scenario, especially in case of developing nation.

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揭开隐藏的根源:印度中小微企业营运资本效率的挂毯

目的营运资本效率(WCE)对大型和小型企业的可持续性至关重要。本研究旨在以印度的微型、小型和中型企业(MSMEs)为样本，试图了解WCE的关键决定因素。本研究以578家中小微企业(59家微型企业、226家中型企业和296家小型企业)为样本，采用固定效应面板数据模型，探讨了WCE预测因子之间的关系。此外，本研究采用了两个指标来衡量每种类型的企业(微型、小型和中型)的WCE。几个公司特定的变量，包括杠杆(杠杆)，公司年龄(年龄)，公司规模(Fsiz)，盈利能力(Prof)，延长付款期限(EPT)，人力资本(HCap)，资产周转率(ATR)，反向保理(RF)和公司增长(FG)，对营运资本管理效率(WCE)有显著影响。相比之下，有形资产(Tangib)和工资支出(Sal)对营运资金管理效率的影响不显著。研究局限性/启示本研究基于二手数据。未来的研究可能会纳入一些原始数据，这将有助于定性分析。原创性/价值研究探讨了WCE与HCap、EPT、RF和Sal中费用之间的关系，作为WCE的预测因子，这在早期的中小微企业场景中没有研究，特别是在发展中国家。

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

Journal of Global Operations and Strategic Sourcing MANAGEMENT-

CiteScore

9.40

自引率

0.00%

发文量

期刊介绍： The Journal of Global Operations and Strategic Sourcing aims to foster and lead the international debate on global operations and strategic sourcing. It provides a central, authoritative and independent forum for the critical evaluation and dissemination of research and development, applications, processes and current practices relating to sourcing strategically for products, services, competences and resources on a global scale and to designing, implementing and managing the resulting global operations. Journal of Global Operations and Strategic Sourcing places a strong emphasis on applied research with relevant implications for both knowledge and practice. Also, the journal aims to facilitate the exchange of ideas and opinions on research projects and issues. As such, on top of a standard section publishing scientific articles, there will be two additional sections: "The Industry ViewPoint": in this section, industrial practitioners from around the world will be invited (max 2 contributions per issue) to present their point of view on a relevant subject area. This is intended to give the journal not just an academic focus, but a practical focus as well. In this way, we intend to reflect a trend that has characterised the past few decades, where interests and initiatives in research, academia and industry have been more and more converging to the point of collaborative relationships being a common practice. "Research Updates - Executive Summaries". In this section, researchers around the world will be given the opportunity to present their research projects in the area of global sourcing and outsourcing by means of an executive summary of their project. This will increase awareness of the on-going research projects in the area and it will attract interest from industry.