Contents
pdf Download PDF pdf Download XML
65 Views
11 Downloads
Share this article
Original Article | Volume 2 Issue 4 (ACR, 2025) | Pages 576 - 587
Working Capital Management and Consumer-Linked Profitability: An Integrated Empirical and Theoretical Perspective
1
Associate Professor, N. L. Dalmia Institute of Management Studies and Research, Mumbai Metropolitan Region, Maharashtra, India
Under a Creative Commons license
Open Access
Abstract

This study reframes Working Capital Management (WCM) as a driver of both internal financial efficiency and consumer-facing outcomes. While prior WCM research largely focuses on profitability, the consumer-side effects remain underexplored. Addressing this gap, the study proposes and tests a dual-path framework linking WCM to profitability through consumer-linked channels. Using Indian listed firms from 2001 to 2024, the panel data regressions show that inventory and receivables efficiency, and Cash Conversion Cycle (CCC) optimization, significantly enhance profitability. Payables management supports strategic supplier credit use. Structural Equation Modeling (SEM) reveals that consumer-linked pathways are statistically significant. Inventory efficiency enhances profitability via product availability and satisfaction. CCC optimization improves profitability through stable cashflows and reinvestment in service. Trade credit policies bolster pricing flexibility and competitive positioning. Sectoral WCM strategies influence consumer reliability through operational risk management

Keywords
Recommended Articles
Original Article
Investigating the Cause–Effect Relationship Between Marketing Strategies and Purchase Intentions for Healthy Food Products
Original Article
Cross-Border Trade and Digital Payment: A New Paradigm in Global Business Management
Original Article
A Review of Digital Marketing Practices & Tools
Original Article
Safeguarding the Digital Consumer: A Comparative Legal and Psychological Analysis of Dark Patterns in E-Commerce
...
© Copyright Advances in Consumer Research