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

• 영문명: Effects of Working Capital Management on Small and Medium-sized Enterprises' Profitability from the Continuity of Supply Chain Relationships
• 발행기관: People & Global Business Association
• 저자명: Keontaek Oh EuiBeom Jeong Hanna Yoo
• 간행물 정보: 『Global Business and Finance Review』Vol.28 No.5, 51~66쪽, 전체 16쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2023.10.31

영문 초록

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.

목차

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. Research Design

Ⅳ. Empirical Results and Discussion

Ⅴ. Conclusion

Acknowledgement

References

키워드

working capital management cash conversion cycle supply chain relationship panel data analysis automotive industry