Mbaye, M H (2023) Effective working capital management practice and SMEs' financial performance: the case of SMEs operating in the service and construction sectors in Senegal. DBA thesis, University of Wales Trinity Saint David, UK.
Abstract
The aim of this study is to investigate the correlation between working capital and the profitability of Senegalese SMEs for a sample of 7 SMEs operating in the service and construction sector in Senegal over the period 2016-2019. The study adopts an explanatory research design to analyse and focus on the correlation between variables, mainly cause and effect relationship. In furtherance, to obtain convergence, the mixed methods (qualitative and quantitative) are useful to counterbalance the strength of each other. The empirical evidence has shown that working capital and accounts receivable are negatively correlated. The findings also show an insignificant and negative relationship between profitability and debt ratio. Furthermore, the study indicates that profitability is not considerably impacted by cash conversion cycle. However, it is clear that there is a poor management of CCC. The cornerstone of this research is on SMEs operating in the service and construction industry. The study brings theoretical and practical contributions by expanding and complementing the literature on the field as well as underlining new evidence on the correlation between working capital management and profitability of SMEs operating in the service and construction sector in Senegal. Besides, it includes more intelligibility to the process of managing working capital and factors that impact the financial performance. This study contributes to the body of knowledge by identifying how the management of working capital impact the financial performance of Senegalese SMEs in the service and construction industry. Therefore, the researcher intends to fill the gap in academic literature by proposing methodological enhancements into the management of working capital. From the practitioners' perspectives, the findings underline the significance of working capital management for firms' profitability.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Uncontrolled Keywords: | SMEs; Senegal; construction sector |
| Index terms: | financial performance, management practice, evidence, practitioner, Senegal, construction sector, body of knowledge, profitability, construction industry, conversion, intelligibility, mixed method, research design |
| Subjects: | industry analysis, management, research design and methodology, data collection methods, Geography, business analysis, manufacturing engineering, economic analysis, knowledge management, human factors and perception, practitioner, evaluation and assessment methods |
| Topics: | Roles and Professions, Research Practice, Information Management, Business Strategy, Geographical Context, Engineering Principles |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here