Volume 11 - Issue 55
/ July 2022
209
https:// www.amazoniainvestiga.info ISSN 2322- 6307
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 current 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
210
www.amazoniainvestiga.info ISSN 2322- 6307
paying much attention to their performance.
Organizations are enhancing knots with grants of
equity so goals related to financial performance
can be achieved (Yasir, Majid, & Yousaf, 2014).
The typical nonequity or equity grants link the
organizational performance by enhancing values
and identifying targets and thresholds. The
organizations involved in business try to apply
different kinds of tactics so they can enhance
their sales, values, and profitability.
Organizations have also invested in different
environmental projects to enhance their
performance (Obeidat, Al Bakri, & Elbanna,
2020).
The stock price shows investors' perception
regarding its ability to grow adds earn profit in
the future. Many conditions can influence the
prices of stock. Because of these conditions, the
stock price can go up and down, and the
company's financial position can also be
influenced by time. An organization can be
considered a healthy organization with
outstanding financial performance. As a result,
the value of the company is impacted. Higher
company value attracts more investors, which, in
the long run, will result in better financial
performance (SUKESTI, GHOZALI, Fuad,
ALMASYHARI, & NURCAHYONO, 2021).
The firm's value is the concept of economics
which reflects the organization's value. It shows
the value of a business at a specific date. In
theory, firm value is the amount a person needs
to pay so the business entity can be purchased.
The organization's financial performance is its
ability to allocate and manage resources. It is
possible to determine the Market value with the
help of the present value of the future earnings
(Jihadi et al., 2021).
In the context of social sciences, assertiveness is
considered a social skill that contributes to the
regular adaptation of a person's social
interaction, maintaining the social relationships,
And the emotional well-being of the person
involved in social interaction. The basic message
in the interaction is a kind of self-expression
without humiliation, dominance, or any other
threat to the person involved in it
(ROMAȘCANU & STĂNESCU, 2020).
Therefore, this study examines the relationship
between Firm performance, assertive
assessment, cash conversion period, and
inventory conversion period on the market. This
study also explored the mediating effect of firm
performance.
Literature Review
Firm performance
Performance measurement is the process of
examining the organizational actions to Improve
effectiveness and efficiency. The success of an
organization is based upon explaining the
company’s performance over a certain period.
Scholars have paid a lot of effort to examining
the concept of performance in different
conditions. By successfully measuring the
organizational performance, one can easily
compare the organizational performance with
other organizations as well. Scholars have
reported that organizational performance is the
construct of multiple hierarchies and indicates
the organization's operational and financial
performance (Vejseli & Rossmann, 2017).
The organizations that are successful always play
a crucial role in the development of countries as
well. Some economists consider themselves the
same as the engine determining their political,
social, and economic development. For survival
in a competitive business environment, every
organization's main objective must be to
regularly improve its performance. Scholars have
pointed out that performance is the set of
nonfinancial and financial indicators that provide
the information required to achieve results and
objectives. Researchers also opined that
performance is a very big word because it has
several notions, including competitiveness,
effectiveness, productivity, return, and growth
(Phan, De Luca, & Iaia, 2020).
For investors, corporate values are a critical
concept. It is because this concept is an essential
indicator of the way the market perceives the
company. The organization's market value is
assessed through the stock market price. The
stock market price shows the organizational
potential for the future (Sulong, Saleem, &
Ahmed, 2018). It may also include the investor's
assessment of the capital owned by the
organization. Organizational value is shown in
the stock price of the organization. The
prosperity of the shareholder will rise if the price
of the share increase. The market price also
reflects the organization's value (Ngatemin,
Maksum, Erlina, & Sirojuzilam, 2018).
The organization's performance is a
multidimensional and complex phenomenon in
the literature on the business. Firm performance
is comprised of the organizational results as well
as the organizational output, which are measured
in terms of intended objectives, goals, and
Mian, T.S., Albogami, H.E. / Volume 11 - Issue 55: 209-219 / July, 2022
Volume 11 - Issue 55
/ July 2022
211
https:// www.amazoniainvestiga.info ISSN 2322- 6307
outputs. Three different areas are involved in
organizational performance: market
performance, shareholder return, and financial
performance (Koji, Adhikary, & Tram, 2020).
For the organization's managers, organizational
performance is the primary concern because it
allows them to examine the critical factors for
organizational success. In the concept of firm
performance, researchers have used the terms
effectiveness and efficiency interchangeably.
The potential of the organization is represented
through effectiveness. As mentioned by the
scholars, the needs for organizational
performance and effectiveness are the same.
Therefore, they are interchangeable (Taouab &
Issor, 2019).
Performance often signifies the set of measures
of the organization as stakeholders are interested
in it. Around three decades ago, performance was
purely measured in terms of measures of
accountancy. Nevertheless, its popularity
increased among stakeholders over time, which
birthed the need for other measures to gauge
organizational performance. Some researchers
provided models including customers'
perspectives to measure the performance
(Rehman, Asghar, & Ahmad, 2015).
Performance within the firm is also measured in
terms of the employee's job performance and
organizational standards. Performance is the
outcome of the employee's ability that is the
product of support and effort. Therefore, if any of
these factors is missing, it will negatively affect
the performance. Moreover, the interest and
talent of the person also affect the person's
ability. Design work, incentives, and motivation
also tend to affect the effort. The training of HRD
is also included in the organizational support
(Okechukwu, 2017).
Inventory conversion period (ICP)
ICP is the average time an organization keeps its
inventory (Shin & Soenen, 1998). Scholars have
calculated ICP as:
“Inventory conversion period = Average
inventory *365/Cost of goods sold”. The authors
also describe it as the time required to get
materials for manufacturing and selling a
product. Whereas the inventory conversion time
is the basic time period between which an
organization should invest when a material is
ready for sale (Kangogo & Irungu, 2020).
The amount of days inventory holding or
inventory period is the total time lag among
selling the finished product, manufacturing the
product, and purchasing the material required to
finish the good. The inventory holding period is
also described in the form of conversion of raw
material by the addition of work in progress and
a period of conversion of finished goods. The
organization's efficiency and effectiveness play a
vital role in influencing the inventory conversion
period (Sathyamoorthi, Mbekomize, Mapharing,
& Selinkie, 2018). As a result, the selling as well
as manufacturing process of the products is also
affected. The activity regarding conducting a
product sale depends upon customers'
satisfaction in terms of their needs and wants. If
a large amount of inventory is held by the
organization, it will increase its cost. Therefore,
organizations must introduce systems like the
Just in time system. Organizations must reduce
the inventories at the optimum level so the
opportunity cost can also be reduced regarding
the stock holding and excessive inventory.
Whereas, the cost of products getting out of stock
may be reduced because of stock in inventory
(Ganiyu, Henry, & Adekunle, 2019).
Firm performance and Market value of a firm
The organization's accounting system has several
measurements to examine organizational
performance. These gauges include the return on
equity, return on assets and net income. The
performance of the firm is the assessment of the
success of the organization which the
stakeholders and investors will view for the
funding. The price of stocks will also rise if the
organization's performance is high. As a result,
there will be a positive response of the investors
as well. As the stock market represents the firm's
value, the increase in the price of the stock
reflects a rise in the firm's value. So, the
organization's value is an important factor in
examining the firm's value by increasing stock
price (Hamdan, 2018). An increase in the
organization's revenue can be gathered through
the enhancement in the market share and by
accessing new markets. Scholars proposed that
organizational reputation in the form of positive
organizational performance plays a critical role
in increasing market share (Deswanto & Siregar,
2018).
Assertive assessment and Firm performance
A performance task is an organizational activity
that the organization performs. It is essential that
employees to have good behavior so they can
improve their performance. Therefore, personal
212
www.amazoniainvestiga.info ISSN 2322- 6307
growth is one of the person's growth which is
assessed by the performance at the workplace. As
a result, students are helped to be assertive and
participate actively in the organizational
activities. In order to excel in performance,
assertive behavior must be enhanced among the
employees (Moneva & Bolos, 2020).
The term assertiveness is an important factor of
extraversion. "Assertiveness" is closely related to
the communication of ideas in an effective way
in the form of assertive individuals that tend to
talk forcefully without having any hesitation.
Scholars have described assertiveness as the
capacity of the person to communicate personal
encounters by sharing directly and with clear
ideas. Scholars suggested that members of the
organization and team must effectively share
their ideas to persuade others. These
characteristics are essential to gain any position
so the organization's performance can be
improved. Through the direct information, it is
evident that team performance can be improved
through the provision of feedback performance
and solving the problems (Van Weele, van
Rijnsoever, & Nauta, 2017).
Cash conversion period and Firm
performance
One crucial factor for a manufacturing firm is the
cash conversion cycle. The financial managers
get help from the cash conversion cycle to
specification the stock holding period.
Additionally, the cash conversion cycle is one of
the crucial tools to examine how the
organization's working capital is managed. For
the organization's survival, finance managers
must develop a balance between current
liabilities and current assets for the working
management. On the other hand, financial
managers can also help the organization manage
the cash conversion cycle to minimize the risk of
bankruptcy and future shortage. Resultantly,
return on assets (ROA) and return on equity
(ROE) will be affected and subsequently
performance of the organization will be impacted
(Doğan & Kevser, 2020).
Researchers have explored the relationship
between organizational profitability and the cash
conversion cycle. The cash cycle is an essential
factor used to examine the risk-return while
managing liquidity. The organization's results
showed that cash conversion is vital to return on
assets. Moreover, it has an important linkage
with the performance of the organization as well.
Researchers also explored how the cash cycle
affects organizational profitability (Farooq,
Maqbool, Waris, & Mahmood, 2016).
Yazdanfar & Öhman, (2014) investigated how
the organizational cash conversion cycle impact
its profitability. In their study, panel data was
applied by the scholars as they collected data
from 13,797 SMEs operating in four Swedish
industries. Scholars reported that the
organization's profitability could be enhanced
through increased cash flow (Yazdanfar &
Öhman, 2014).
Zakari and Saidu (2016) analysed the
relationship between organizational profitability
and the cash conversion cycle. Zakari and Saidu
(2016) analysed Nigerian Stock Exchange listed
IT firms’ data from the year 2010 to 2014. They
reported a significant relationship between
organizational profitability and the cash
conversion cycle (Zakari & Saidu, 2016).
Inventory conversion period and Firm
performance
Researchers investigated the impact of inventory
management on financial performance among
Nigerian organizations. These scholars used ex-
post factor research design along with multiple
regression and Pearson correlation regression
techniques to analyze data for 5 years from 2010
to 2014 (Ahmed, Modibbo, Modu, &
Muhammad, 2016). These scholars found that
the inventory conversion period significantly
impacts organizational performance.
On the other hand, in previous studies, scholars
also investigated the impact of inventory
management on the organizational performance
of manufacturing organizations (Kangogo &
Irungu, 2020). Kangogo & Irungu (2020) used a
quantitative research design, descriptive study,
and data from 13 companies. Ondimu, Rotich, &
Kipkirui (2018) reported a positive relationship
among these variables (Ondimu, Rotich, &
Kipkirui, 2018).
A hypothesis provides a refined supposition
based on methodical evidence, which is further
proven or disproven through the scientific
method and data analysis. The hypotheses are a
way to present a focus on the findings, data, and
conclusion of a study. Based on the literature
review this study hypothesize the following:
H1: Firm performance and the Market value of a
firm are significantly related.
H2: Assertive assessment and Firm performance
are significantly related to each other.
Volume 11 - Issue 55
/ July 2022
213
https:// www.amazoniainvestiga.info ISSN 2322- 6307
H3: Cash conversion period and Firm
performance are significantly related.
H4: Inventory conversion period and Firm
performance are significantly related.
H5: Assertive assessment and market value are
significantly related to each other.
H6: cash conversion period and Firm
performance are significantly related.
H7: Inventory conversion period and Firm
performance are significantly related.
Mediating Hypotheses
H8: Firm performance is a significant mediator
between Assertive assessment and the Market
value of a firm.
H9: Firm performance is a significant mediator
between Cash conversion and the Market value
of a firm.
H10: Firm performance is a significant mediator
between the Inventory conversion period and the
Market value of a firm.
Methodology
A cross-sectional design was adopted for this
study. Moreover, this study adopted a
quantitative approach. Therefore, questionnaires
were developed having two portions
demographics and questions regarding variables
of the study. 7 Likert scale was used, ranging
from 1= strongly disagree and 7= strongly agree
to develop the questionnaire. The data was
collected by using simple random sampling from
employees of the SME sector in KSA. The data
was collected using a self-administered survey.
Initially, 476 questionnaires were distributed
among the respondent. A total of 317 were
usable, having a response rate of 66.56%. The
received questionnaires were punched in SPSS
for initial analysis like multicollinearity
screening, detection of outliers, missing value
analysis, and descriptive analysis. For further
analysis, PLS 3.3.2 was used by the researcher.
Figure 1. Research Framework
Results
The data gathered from the respondents was
entered in SPSS for preliminary analysis. Initial
tests like multicollinearity, detection of outliers,
normality tests, and descriptive statistics were
conducted. Later, the present study conducted the
demographic analysis as well using SPSS.
According to the findings, more than 72% of the
respondents were female. Most of the
respondents were married, which constitutes
around 86%. More than 37% of the respondents
had more than 40 years of age, whereas 32%
were aged between 20-30 years. In the end, most
respondents, around 50.2% were Master’s degree
holders.
214
www.amazoniainvestiga.info ISSN 2322- 6307
Table 1.
Demographics
Demographic variables
Category
Percentage
Gender
Female
72%
Male
28%
Marital Status
Married
86%
Single
14%
Age
Below 20
0%
20-30
32.50%
31-40
30.23%
Above 40
37.01%
Highest Education
Diploma
2.2%
Masters
50.2%
Bachelors
47.6%
Based on the recommendations of Henseler,
Ringle, and Sinkovics (2009), two steps
approach was followed in the present study to run
the PLS-SEM. The first step is assessing the
measurement model, which leads to examining
the structural model. Following is the figure of
the measurement model used in the present
study.
Figure 2. Measurement Model
Note: CC= cash conversion, ICP= Inventory
conversion Period, MV= market value, FP= firm
performance, AGI= aggressive investment
The primary purpose of evaluating the
measurement model is to assess the reliability
and validity of the data. The first phase is to
assess the reliability of the inter-item, which is
done through the evaluation of factor loadings. In
this aspect, Sarstedt, et al. (2016) mentioned the
threshold value to be a minimum of 0.50. Table
2 below shows the reliability of the items of all
variables used in the present study fulfilled the
criteria.
Volume 11 - Issue 55
/ July 2022
215
https:// www.amazoniainvestiga.info ISSN 2322- 6307
Table 2.
Factor Loading
AGI
CCP
FP
ICP
OP
AGI1
0.788
AGI2
0.858
AGI3
0.816
AGI4
0.595
AGI5
0.796
CCP1
0.772
CCP10
0.820
CCP11
0.839
CCP12
0.768
CCP2
0.816
CCP3
0.816
CCP4
0.799
CCP5
0.767
CCP6
0.806
CCP7
0.750
CCP8
0.838
CCP9
0.832
FP1
0.921
FP2
0.893
FP3
0.927
FP4
0.887
ICP1
0.915
ICP2
0.898
ICP3
0.902
ICP4
0.910
ICP5
0.897
ICP7
0.864
MV1
0.928
MV2
0.910
MV3
0.924
MV4
0.906
Note: CC= cash conversion, ICP= Inventory conversion Period, MV= market value, FP= firm performance,
AGI= aggressive investment
The next step, after a successful evaluation of the
reliability of the items, examination of
convergent validity is conducted in the present
study. For this purpose, the present study
evaluated AVE by ensuring that all AVE values
are above the threshold level of 0.50 (Chin,
1998). This research also assessed the Cronbach
Alpha and composite reliability values, for which
the minimum acceptable value must be more than
0.70 (Gefen, Straub, & Boudreau, 2000). Results
mentioned in table 3 reflect that the minimum
threshold level is fulfilled in the present study.
Table 3.
Data Reliability
Cronbach's Alpha
rho_A
Composite Reliability (CR)
Average Variance Extracted (AVE)
AGI
0.836
0.868
0.882
0.602
CCP
0.950
0.951
0.956
0.644
FP
0.928
0.929
0.949
0.823
ICP
0.952
0.952
0.961
0.806
OP
0.937
0.938
0.955
0.841
Note: CC= cash conversion, ICP= Inventory conversion Period, MV= market value, FP= firm performance, AGI=
aggressive investment
216
www.amazoniainvestiga.info ISSN 2322- 6307
Discriminant validity of the data is confirmed
when the loading of the items is higher on its
construct than of other constructs. Therefore, in
the present study, discriminant validity is
assessed through the differential of the square of
values of AVE of every construct through all
other constructs, which has to be more than a
correlation among two factors (Fornell &
Larcker, 1981). Table 4 shows correlation values
among each construct with itself is more than all
remaining constructs showing discriminant
validity of all constructs is fulfilled.
Table 4.
Discriminant Validity (Fornell & Larcker)
AGI
CCP
FP
ICP
OP
AGI
0.776
CCP
0.611
0.802
FP
0.539
0.687
0.907
ICP
0.605
0.513
0.515
0.898
OP
0.566
0.587
0.559
0.471
0.917
Note: CC= cash conversion, ICP= Inventory conversion Period, MV= market value, FP= firm performance,
AGI= aggressive investment
In this study the discriminant validity is assessed
using Heterotrait-Monotrait ratio. Multritrait-
Multimethod is the method which is the base of
HTMT (Henseler, Ringle, & Sarstedt, 2015). In
this context, Kline (2011) pointed out the
minimum threshold value for the discriminant
validity if the value is less than 0.85 (following
the strict criteria) and 0.90 (following the lenient
criteria). Table 5 below shows that the strict
criteria of HTMT were fulfilled in the present
study.
Table 5.
Discriminant validity (HTMT)
AGI
CCP
FP
ICP
OP
AGI
CCP
0.648
FP
0.580
0.729
ICP
0.646
0.538
0.546
OP
0.608
0.621
0.598
0.496
Note: CC= cash conversion, ICP= Inventory conversion Period, MV= market value, FP= firm performance,
AGI= aggressive investment
After assessing the measurement model, the
present study evaluated the structural model to
confirm the relationship among proposed
relationships. In this step, the guidelines of
Henseler et al. (2009) were followed to examine
the significance of the coefficient. Five thousand
subsamples were used in the present study to
perform bootstrapping for the structural model
Sarstedt, Hair, Ringle, Thiele, and Gudergan
(2016). The stats in table 6 below show the
findings of the direct hypothesis.
Table 6.
Results: Direct Hypothesis
Betas
Standard deviation
t-test
p-value
Decision
AGI -> FP
0.107
0.063
1.696
0.045
Support
AGI -> MV
0.252
0.073
3.460
0.000
Support
CCP -> FP
0.531
0.064
8.250
0.000
Support
CCP -> MV
0.245
0.072
3.410
0.000
Support
FP -> MV
0.212
0.067
3.177
0.001
Support
ICP -> FP
0.178
0.057
3.118
0.001
Support
ICP -> MV
0.084
0.059
1.415
0.079
Not Support
Note: CC= cash conversion, ICP= Inventory conversion Period, MV= market value, FP= firm performance, AGI=
aggressive investment
Volume 11 - Issue 55
/ July 2022
217
https:// www.amazoniainvestiga.info ISSN 2322- 6307
The results in table 6 show that most of the
proposed hypothesis is supported statistically.
According to these results, AGI has a significant
positive effect on FP. AGI has a significant
positive relationship with MV (β =0.252). The
same results are with the relationship between
CCP and FP showing a positive (significant)
relationship. Moreover, SSP and MV have
positive (significant) effects and a positive
relationship (β =0.245). Also, FP and MV have a
significant positive association with β =0.212. In
the end, the relationship between ICP and FP has
positive integration (β=0.178). On the other
hand, the statistical results do not support the
hypothesis that ICP and MV have a positive
relationship.
Table 7.
Results: Mediating Hypotheses
Betas
Standard
deviation
t-test
p-value
Decision
CCP -> FP -> MV
0.112
0.039
2.882
0.002
Support
ICP -> FP -> MV
0.038
0.015
2.481
0.007
Support
AGI -> FP -> MV
0.023
0.017
1.333
0.092
Not Supported
Note: CC= cash conversion, ICP= Inventory conversion Period, MV= market value, FP= firm
performance, AGI= aggressive investment
Furthermore, the above table depicts the
mediating results of the study. The findings
support the mediating role of FP between CCP
and MV. Moreover, the mediating role of FP and
MV is also confirmed. But this role is not
statistically supported in the relationship between
AGI and MV.
Figure 3. Structural Model
Note: CC= cash conversion, ICP= Inventory
conversion Period, MV= market value, FP= firm
performance, AGI= aggressive investment.
In this study, R2, calculated using PLs algorithm,
was used to assess the predictive power. During
statistical analysis R2 for FP was 0.514 and for
MV was 0.444. According to Purwanto and
Sudargini (2021), the value of R square is
acceptable if it is more than 0.10. This criterion
is fulfilled in the present study.
Table 8.
R square
Original Sample (O)
FP
0.514
MV
0.444
Note: MV= market value, FP= firm performance
218
www.amazoniainvestiga.info ISSN 2322- 6307
Discussion
The assessment of the firm's market value is a
lynchpin of success for any firm, and the SME
sector is no exception. Therefore, this study was
conducted to assess the relationship between
aggressive investment, inventory conversion
period, cash conversion period, firm
performance, and market value. This study found
that aggressive investment has a positive
relationship with market value and the
organization's performance. These results are in
line with (Pearsall & Ellis, 2006). Moreover, the
study's findings revealed that CCP positively
affects MV and FP. These results align with the
findings of (Doğan & Kevser, 2020).
Furthermore, ICP and FP are positively
associated as well. These results are in line with
the findings of (Kangogo & Irungu, 2020).
However, these results show that ICP and MV
are not significantly linked. Additionally, the
mediating role of FP is confirmed among AGI,
CSI, and MV.
Conclusions
It has been observed that though the SME sector
in Saudi Arabia is taking a leading role in the
kingdom's economic development, there is a lack
of research in this area. This research attempts to
bridge this gap and provide research closely
focused on the SME sector of the kingdom.
Moreover, as the mediating role of FP is rarely
tested in the existing literature, this study could
also be considered an attempt to fill this gap. Last
but not least, it is expected that this paper will
provide some economic reasoning for future
policies and will help the policymakers of the
SME sector in KSA.
This study also has a few limitations; for
example, the moderator role of the Trust of the
customer should be considered in future research.
Moreover, this model should also be tested using
data from the banking sector.
Bibliographic references
Ahmed, A. D., Modibbo, S., Modu, K., &
Muhammad, B. (2016). Effect of inventory
management on financial performance:
Evidence from Nigerian conglomerate
companies. International Journal of Social,
Behavioral, Educational, Economic, Business
and Industrial Engineering, 10(9), 33-89.
Chin, W. W. (1998). The partial least squares
approach to structural equation modeling.
Modern methods for business research, 295(2),
295-336.
Deswanto, R. B., & Siregar, S. V. (2018). The
associations between environmental disclosures
with financial performance, environmental
performance, and firm value. Social
Responsibility Journal, 14(1).
Doğan, M., & Kevser, M. (2020). The Determinants
of Cash Conversion Cycle and Firm
Performance: An Empirical Research for Borsa
Istanbul Turkey. Management and Economics
Review, 5(2), 197-206.
Farooq, U., Maqbool, M. Q., Waris, M., &
Mahmood, R. (2016). Liquidity risk,
performance and working capital relationship of
cash conversion cycle: an empirical study of the
firms in Pakistan. International Journal of
Information Research and Review, 3(3), 1946-
1951.
Fornell, C., & Larcker, D. F. (1981). Evaluating
structural equation models with unobservable
variables and measurement error. Journal of
marketing research, 18(1), 39-50.
Ganiyu, A. B., Henry, A. W., & Adekunle, A. M.
(2019). An assessment of just in time system on
the financial performance of manufacturing
firms in Nigeria. Journal of Accounting and
Taxation, 11(7), 111-119.
Gefen, D., Straub, D., & Boudreau, M.-C. (2000).
Structural equation modeling and regression:
Guidelines for research practice.
Communications of the association for
information systems, 4(1), 7.
Hamdan, A. (2018). Intellectual capital and firm
performance: Differentiating between
accounting-based and market-based
performance. International Journal of Islamic
and Middle Eastern Finance and Management,
11(1).
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015).
A new criterion for assessing discriminant
validity in variance-based structural equation
modeling. Journal of the academy of marketing
science, 43(1), 115-135.
Henseler, J., Ringle, C. M., & Sinkovics, R. R.
(2009). The use of partial least squares path
modeling in international marketing. In New
challenges to international marketing: Emerald
Group Publishing Limited.
Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z.,
Bachtiar, Y., & Sholichah, F. (2021). The effect
of liquidity, leverage, and profitability on firm
value: Empirical evidence from Indonesia. The
Journal of Asian Finance, Economics and
Business, 8(3), 423-431.
Kangogo, C. C., & Irungu, A. M. (2020). Inventory
Conversion Period and Financial Performance
of Selected Firms Listed at Nairobi Securities
Exchange. Journal of Finance and Accounting,
4(5), 55-76.
Kline, R. B. (2011). Principles and practice of
structural equation modeling (3. Baskı). New
York, NY: Guilford.