Does working capital management influence firm competitiveness?
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F24%3A50021779" target="_blank" >RIV/62690094:18450/24:50021779 - isvavai.cz</a>
Result on the web
<a href="https://systems.enpress-publisher.com/index.php/jipd/article/view/5482" target="_blank" >https://systems.enpress-publisher.com/index.php/jipd/article/view/5482</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.24294/jipd.v8i8.5482" target="_blank" >10.24294/jipd.v8i8.5482</a>
Alternative languages
Result language
angličtina
Original language name
Does working capital management influence firm competitiveness?
Original language description
Working Capital Management (hereafter WCM) is the strategic tool that helps a company navigate through challenging economic growth, and influence its competitive performance. Thus, this study examines the impact of WCM on the competitiveness of firms operating in the non-financial sectors in Pakistan. We use the Generalized Method of Moments (GMM) technique to ensure the robustness of our results. The study findings reveal that both a large net trade cycle and surplus working capital have a substantial negative impact on firms’ competitiveness within their respective industries. These results suggest that companies should streamline their investments in working capital accounts and concentrate more resources on long-term projects that maximize value to improve their competitiveness compared to other companies. Therefore, firms that are effectively managing their short-term financial affairs are experiencing much better performance in all aspects of firm performance. The research findings highlight the urgent need for governmental initiatives designed to improve WCM practices in these industries. It is imperative for the management of companies with excess net working capital to maximize their working capital efficiency, aligning it with industry standards to enhance competitiveness. Moreover, policymakers should prioritize easing access to financial alternatives that allow enterprises to maintain an efficient working capital structure without relying on excessive measures. Furthermore, policymakers should be cautious when determining minimum cash balance requirements in a cash-strapped economy where external financing is relatively more expensive than in other regional economies. © 2024 by author(s).
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Infrastructure, Policy and Development
ISSN
2572-7923
e-ISSN
2572-7931
Volume of the periodical
8
Issue of the periodical within the volume
8
Country of publishing house
US - UNITED STATES
Number of pages
19
Pages from-to
"Article number: 5482"
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85205124348