<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>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.</p>
</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.

The interrelationship of working capital: The role of financial bootstraping and government support

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This study aims to investigate the effects of financial bootstrapping and government support on working capital, as well as the moderating role of...

The interrelationship of working capital: The role of financial bootstraping and government support

Publié en ligne: 19 mars 2024

Pages: 51 - 63

Reçu: 03 oct. 2023

Accepté: 23 janv. 2024

DOI: https://doi.org/10.2478/fiqf-2024-0005

Mots clés
Financial Performance, Working Capital, Entrepreneurial Orientation, Financial Bootstrapping, Government Support

© 2024 Maria Rio Rita et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The interrelationship of working capital: The role of financial bootstraping and government support

Publié en ligne: 19 mars 2024

Pages: 51 - 63

Reçu: 03 oct. 2023

Accepté: 23 janv. 2024

DOI: https://doi.org/10.2478/fiqf-2024-0005

Mots clésFinancial Performance, Working Capital, Entrepreneurial Orientation, Financial Bootstrapping, Government Support

© 2024 Maria Rio Rita et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
Financial Performance, Working Capital, Entrepreneurial Orientation, Financial Bootstrapping, Government Support