Benchmarking working capital management in the inter-organisational context Online publication date: Fri, 30-May-2014
by Miia Pirttilä; Sari Viskari; Lotta Lind; Timo Kärri
International Journal of Business Innovation and Research (IJBIR), Vol. 8, No. 2, 2014
Abstract: This paper benchmarks working capital management in the inter-organisational context by applying the financial value chain analysis method. The method extends the value chain analysis to industry level. Working capital management is studied in ICT, pulp and paper and automotive industries with the cash conversion cycle (CCC). The CCC of these industries is approximately 40, 60 and 70 days, respectively. The difference is mainly a consequence of the different cycle time of inventories. The 2008 financial crisis affected the working capital management of the industries similarly. Both the cycle time of accounts receivable and accounts payable increased between 2008 and 2009. Inside each industry, the CCC of the branches of the industry varies. The difference of the CCC between the branches that have the shortest and the longest CCC is six-fold in the ICT industry, two-fold in the pulp and paper industry and three-fold in the automotive industry.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Innovation and Research (IJBIR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook