Managing working capital for profitability; Experience in the Saudi SME sector
| Autor | Saeed Mian Tariq, Hanadi Eid Albogami |
| Cargo | Department of IS, College of Computer Science and Engineering Taibah University, Madinah Almunwarah, Saudi Arabia/Doctoral Student, Earl G. Graves School of Business & Management, Morgan State University, Baltimore, Maryland, USA |
| Páginas | 209-219 |
Volume 11 - Issue 55
/ July 2022
209
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DOI: https://doi.org/10.34069/AI/2022.55.07.22
How to Cite:
Mian, T.S., & Albogami, H.E. (2022). Managing working capital for profitability; Experience in the Saudi SME sector. Amazonia
Investiga, 11(55), 209-219. https://doi.org/10.34069/AI/2022.55.07.22
Managing working capital for profitability; Experience in the Saudi
SME sector
Received: August 19, 2022 Accepted: September 20, 2022
Written by:
99Tariq Saeed Mian
https://orcid.org/0000-0003-2666-9223
100Hanadi Eid Albogami
https://orcid.org/0000-0003-4079-9649
Abstract
This study is an attempt to examine the
relationship between Assertive investment,
inventory conversion period, cash conversion
period, firm performance, and market value.
Moreover, this study also examined the
mediating role of firm performance. The data for
this research was collected from the employees
working in the SME sector of KSA. A self-
administrative survey was conducted to collect
the data. After three reminders, 68.4% of
questionnaires were returned, and 66.7% were
found to be duly completed and used in this
research. The data was gleaned from these
questionnaires and was later analyzed using
SPSS 25 and Smart PLS 3. The study’s results
revealed that except for the inventory conversion
period, all other chosen parameters affect the
market value of the Saudi SME sector. At the
same time, the rest of the direct effects are
confirmed. On the other hand, the mediating role
of firm performance is confirmed between CCP,
ICP, and MV. The findings of this study are
helpful for the policymakers of the SME sector
in KSA.
Keywords: Assertive investment, inventory
conversion period, cash conversion period,
market value, SME.
SPSS 25 Smart 3PLS CCP ICP . MV .
Introduction
In the curr ent competitive environment,
sustainability is dependent upon the success of
the functionality of financial management. It has
become very challenging for the finance division
managers to deal with financial market issues. It
99
Department of IS, College of Computer Science and Engineering Taibah University, Madinah Almunwarah, Saudi Arabia.
100
Doctoral Student, Earl G. Graves School of Business & Management, Morgan State University, Baltimore, Maryland, USA.
is because organizational success depends upon
effectivity and efficiency of the financial
markets. The success also depends on the
operational and financial affairs of the
organization. Therefore, organizations are
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