Item Type | Journal paper |
Abstract | In this paper, we examine the functional form of the relationship between working capital assets and corporate performance beyond the traditional single-company perspective. In particular, we explore how a focal company's adequate level of working capital is influenced by the presence of limited financial resources along the supply chain. Moreover, we investigate the performance impact of supply chain finance (SCF)-oriented working capital management (WCM) approaches. Based on the SCF-oriented school of thought, we subject propositions regarding the relationship between working capital and corporate performance from prior WCM research to explorative empirical testing. In doing so, we raise awareness of factors that have yet to be tested. We derive methodological implications for conducting interorganizational studies in the field of SCF and outline a future research agenda. The explorative results indicate (i) the existence of a profit-maximizing level of working capital, (ii) superior performance of companies adopting an SCF-oriented WCM approach, (iii) higher profit-maximizing levels of working capital for focal companies facing financially constrained supply chain partners, (iv) a positive performance impact of efficient inventory management, and (v) differentiated payment strategies toward up- and downstream supply chain partners. |
Authors | Wetzel, Philipp & Hofmann, Erik |
Journal or Publication Title | International Journal of Production Economics |
Language | English |
Subjects | business studies economics finance |
HSG Classification | contribution to scientific community |
HSG Profile Area | SoM - Business Innovation |
Refereed | Yes |
Date | 5 July 2019 |
Publisher | Elsevier |
Volume | 216 |
Page Range | 364-383 |
Number of Pages | 20 |
ISSN | 0925-5273 |
Publisher DOI | https://doi.org/10.1016/j.ijpe.2019.07.001 |
Depositing User | M.A. HSG Philipp Wetzel |
Date Deposited | 11 Jul 2019 13:00 |
Last Modified | 20 Jul 2022 17:38 |
URI: | https://www.alexandria.unisg.ch/publications/257328 |
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CitationWetzel, Philipp & Hofmann, Erik (2019) Supply chain finance, financial constraints and corporate performance: An explorative network analysis and future research agenda. International Journal of Production Economics, 216 364-383. ISSN 0925-5273 Statisticshttps://www.alexandria.unisg.ch/id/eprint/257328
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