The interrelationship of working capital: The role of financial bootstraping and government support

Autor: Rita Maria Rio, Supramono, Dayamanti Theresia Woro, Nastiti Pambayun Kinasih Yekti
Jazyk: angličtina
Rok vydání: 2024
Předmět:
Zdroj: Financial Internet Quarterly, Vol 20, Iss 1, Pp 51-63 (2024)
Druh dokumentu: article
ISSN: 2719-3454
DOI: 10.2478/fiqf-2024-0005
Popis: This study aims to investigate the effects of financial bootstrapping and government support on working capital, as well as the moderating role of entrepreneurial orientation towards the impact of working capital on financial performance. The study was conducted on 260 MSME owners in the food and beverage sector in Semarang, Surakarta, and Salatiga, in Central Java Province, Indonesia. By using a Partial Least Squares-Structural Equation Modeling (PLS-SEM) analysis, the determinant effects and consequences of working capital were determined. The findings of this study indicate that financial bootstrapping and government support are proven to have a significant positive effect on working capital. Working capital has a significant positive effect on financial performance, but entrepreneurial orientation is not confirmed to moderate the effect of working capital on financial performance.
Databáze: Directory of Open Access Journals