Title: Examining the relationship between working capital management and firm performance: a state-of-the-art literature review and visualisation analysis

Authors: R. Manigandan; S. Dheepalakshmi

Addresses: VIT Business School, Vellore Institute of Technology (Deemed to be University), Vellore, Tamilnadu-632014, India ' School of Social Sciences and Languages SSL, Vellore Institute of Technology (Deemed to be University), Vellore, Tamilnadu-632014, India

Abstract: The current study concentrates on a systematic review of literature related to the impact of working capital management on firm performance. The main purpose of the study is the overall state-of-the-art literature review process. The review was done with overall 55 publications. The paper rigorously examines the influential studies in the literature related to the impact of working capital management on firm performance. The study found an inadequate literature review on working capital management on firm performance. The study needs to answer the two main research questions: 1) what are the determinants and practices of working capital management, 2) the impact of working capital management on higher firm performances. Our findings include firstly a majority of the researchers proved a working capital management positive effect on firm performance. Secondly, most of the research was published in the USA, and the UK countries while limited studies have focused on emerging The current study provides a research gap and future agenda for firm managers and researchers.

Keywords: benchmarking; working capital management; WCM; firm performance; FP; working capital management theory; state of the art literature review; visualisation analysis.

DOI: 10.1504/IJMCP.2025.142938

International Journal of Management Concepts and Philosophy, 2025 Vol.18 No.1, pp.81 - 104

Received: 23 Jul 2023
Accepted: 26 Jul 2023
Published online: 02 Dec 2024 *

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