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An Analysis of Working Capital Management Strategy in Small Enterprises Operating Within Group Purchasing Organizations

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Eurasian Economic Perspectives

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 15/1))

Abstract

Working capital management is the most important area of business management. The main purpose of net working capital management is to keep the financial safety of an enterprise. The purpose of this article is to analyze working capital management in small enterprises operating in Polish group purchasing organizations (GPOs). The research was carried out on a group of 96 commercial enterprises operating in the construction industry. The research period covered the years 2013–2017. The units operate in Polish group purchasing organizations. Statistical research was performed using the statistical average, median, minimum, and maximum values for the most important financial indicators informing about the working capital management strategy. The analysis was to show which strategies for managing working capital are used by small enterprises operating within GPOs. The results indicate that small enterprises operating within purchasing groups are abandoning aggressive strategies. They focus on the safe management of the company; their management strategies tend toward an indirect strategy, which should be defined as moderate-conservative one.

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Authors and Affiliations

  1. Faculty of Management, Department of Finance, Banking and Accounting, Rzeszów University of Technology, Rzeszów, Poland

    Grzegorz Zimon

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  1. Grzegorz Zimon
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Correspondence to Grzegorz Zimon .

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Editors and Affiliations

  1. Faculty of Political Sciences, Istanbul Medeniyet University, Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank, San Francisco, CA, USA

    Hakan Danis

  3. Faculty of Tourism, Istanbul Medeniyet University, Istanbul, Turkey

    Ender Demir

  4. School of Economics, Finance and Accounting, Coventry University, Coventry, UK

    Uchenna Tony-Okeke

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Zimon, G. (2020). An Analysis of Working Capital Management Strategy in Small Enterprises Operating Within Group Purchasing Organizations. In: Bilgin, M., Danis, H., Demir, E., Tony-Okeke, U. (eds) Eurasian Economic Perspectives. Eurasian Studies in Business and Economics, vol 15/1. Springer, Cham. https://doi.org/10.1007/978-3-030-48531-3_7

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