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Working capital management in the Russian automotive industry supply chain

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  • Pirttilä, M.
  • Virolainen, V.M.
  • Lind, L.
  • Kärri, T.

Abstract

Companies must successfully finance their supply chains if they are to maintain their competitive advantage. Specifically, asset management in a supply chain is an essential component of improving one's financial stance. This study examines operational working capital management in the Russian automotive supply chain using the transaction cost theory (TCE) perspective. It considers working capital management (WCM) models with financial supply chain analysis using cash conversion cycles (CCC) and return on assets (ROA) as measurements. Companies operating with efficient WCM models are usually the leaders and the most powerful actors in the supply chain. Overall, according to our analysis long accounts payable payment period are prevalent, inventory levels high and CCCs short. Further, the most profitable firms are those that pay their suppliers promptly. The WCM models based on the data of this study may contribute to deliberate strategies and choices regarding the optimal governance structures of supply chains.

Suggested Citation

  • Pirttilä, M. & Virolainen, V.M. & Lind, L. & Kärri, T., 2020. "Working capital management in the Russian automotive industry supply chain," International Journal of Production Economics, Elsevier, vol. 221(C).
    • Handle: RePEc:eee:proeco:v:221:y:2020:i:c:s0925527319302841
    DOI: 10.1016/j.ijpe.2019.08.009
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    References listed on IDEAS

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    Cited by:

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    2. Raza Ali & Tursoy Turgut & Shaikh Erum & Shaikh Ahsan-ul-Haque, 2024. "Investigating the Symmetric Effects of Working Capital on Profitability in Turkish Banking: An ARDL Empirical Analysis," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(1), pages 74-97, March.
    3. Patil, Chintan & Prabhu, Vittaldas, 2024. "Supply chain cash-flow bullwhip effect: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 267(C).
    4. Grzegorz Zimon & Dominik Zimon, 2020. "Quality Management Systems and Working Capital SMEs in GPO—A Case of Poland," Administrative Sciences, MDPI, vol. 10(4), pages 1-13, October.
    5. Magni, Carlo Alberto & Marchioni, Andrea, 2020. "Average rates of return, working capital, and NPV-consistency in project appraisal: A sensitivity analysis approach," International Journal of Production Economics, Elsevier, vol. 229(C).
    6. Afrifa, Godfred Adjapong & Tingbani, Ishmael & Adesina, Oluseyi Oluseun, 2022. "Stochastic frontier modelling of working capital efficiency across Europe," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

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