The interrelationship of working capital: the role of financial bootstrapping and government support
The interrelationship of working capital: the role of financial bootstrapping and government support
Author(s): Maria Rio RITA, Supramono Supramono, Theresia Woro Damayanti, Pambayun Kinasih Yekti NastitiSubject(s): National Economy, Business Economy / Management, Financial Markets, Public Finances, Socio-Economic Research
Published by: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Keywords: Financial Performance; Working Capital; Entrepreneurial Orientation; Financial Bootstrapping; Government Support;
Summary/Abstract: 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.
Journal: Financial Internet Quarterly
- Issue Year: 20/2024
- Issue No: 1
- Page Range: 51-63
- Page Count: 13
- Language: English
