IDEAS home Printed from https://ideas.repec.org/a/igg/jisscm/v18y2025i1p1-30.html
   My bibliography  Save this article

Optimizing Working Capital in E-Commerce Supply Chains: A Data-Driven Financial Approach

Author

Listed:
  • Wenzhen Mai

    (Guangzhou Huali College, China)

  • Mohamud Saeed Ambashe

    (Emirates Aviation University, UAE)

  • Chukwuka Christian Ohueri

    (Universiti Sains Malaysia, Malaysia)

Abstract

This research aims to develop a comprehensive, data-driven financial model for optimizing working capital to enhance operational efficiency and competitiveness in the supply chains of e-commerce companies. Questionnaire data from 280 stakeholders operating within the e-commerce supply chains across the globe were analyzed using structural equation modeling (SEM) analysis to explore the complex interrelations between the variables that optimize working capital in e-commerce supply chains. The findings from SEM analysis reveal that technology integration, such as sensors and AI-driven inventory management systems; market responsiveness through adaptive pricing strategies; and supplier relationship management via ethical and transparent transactions, have a direct positive influence on working capital efficiency in e-commerce supply chains. Furthermore, collaborative planning, via the use of emerging technologies and efficient practices, emerged as the key mediator, amplifying the positive influence of technology integration and supplier relationship management.

Suggested Citation

  • Wenzhen Mai & Mohamud Saeed Ambashe & Chukwuka Christian Ohueri, 2025. "Optimizing Working Capital in E-Commerce Supply Chains: A Data-Driven Financial Approach," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 18(1), pages 1-30, January.
    • Handle: RePEc:igg:jisscm:v:18:y:2025:i:1:p:1-30
    as

    Download full text from publisher

    File URL: https://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJISSCM.369154
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rahman, Molla Ramizur & Misra, Arun Kumar & Kumar, Satish, 2024. "A financial supply chain on corporate working capital and interbank lines of credit," International Review of Financial Analysis, Elsevier, vol. 91(C).
    2. Maria Cristina Arcuri & Raoul Pisani, 2021. "Is Trade Credit a Sustainable Resource for Medium-Sized Italian Green Companies?," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    3. Mar Vazquez-Noguerol & Jose Comesaña-Benavides & Raul Poler & J. Carlos Prado-Prado, 2022. "An optimisation approach for the e-grocery order picking and delivery problem," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(3), pages 961-990, September.
    4. Banerjee, Pradip & Deb, Soumya G., 2023. "Capital investment, working capital management, and firm performance: Role of managerial ability in US logistics industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 176(C).
    5. Pirttilä, M. & Virolainen, V.M. & Lind, L. & Kärri, T., 2020. "Working capital management in the Russian automotive industry supply chain," International Journal of Production Economics, Elsevier, vol. 221(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Amin Hasan & Ali Sajid & Aman Abbas Ghouri & Talal Ahmed Khan, 2023. "Re-Examining Working Capital Management and Firm Performance Nexus: Does Investment Policy Matter?," Journal of Economic Impact, Science Impact Publishers, vol. 5(3), pages 269-278.
    2. Magni, Carlo Alberto & Marchioni, Andrea, 2020. "Average rates of return, working capital, and NPV-consistency in project appraisal: A sensitivity analysis approach," International Journal of Production Economics, Elsevier, vol. 229(C).
    3. Rahman, Molla Ramizur & Naeem, Muhammad Abubakr & Yarovaya, Larisa & Mohapatra, Sabyasachi, 2024. "Unravelling systemic risk commonality across cryptocurrency groups," Finance Research Letters, Elsevier, vol. 65(C).
    4. Afrifa, Godfred Adjapong & Tingbani, Ishmael & Adesina, Oluseyi Oluseun, 2022. "Stochastic frontier modelling of working capital efficiency across Europe," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    5. Liu, Xinmeng & Zheng, Zhihong, 2024. "The impact of supply chain finance on supplier stability: The mediation role of corporate risk-taking," Finance Research Letters, Elsevier, vol. 65(C).
    6. Jingjing Dong & Qiancheng Zhang, 2024. "Sustainable Development of the Real Economy: Supply Chain Finance and Enterprise Financialization," Sustainability, MDPI, vol. 16(9), pages 1-18, April.
    7. Zhang, Hua & Wang, Pengcheng & Zhang, Huaqing & Du, Shilin & Zhao, Liang, 2024. "Corporate litigation risk and supply chain resilience," Finance Research Letters, Elsevier, vol. 66(C).
    8. Xuefei Yang & Manuel Ostermeier & Alexander Hübner, 2024. "Winning the race to customers with micro-fulfillment centers: an approach for network planning in quick commerce," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(2), pages 295-334, June.
    9. Raza Ali & Tursoy Turgut & Shaikh Erum & Shaikh Ahsan-ul-Haque, 2024. "Investigating the Symmetric Effects of Working Capital on Profitability in Turkish Banking: An ARDL Empirical Analysis," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(1), pages 74-97, March.
    10. Patil, Chintan & Prabhu, Vittaldas, 2024. "Supply chain cash-flow bullwhip effect: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 267(C).
    11. Hossein Tarighi & Grzegorz Zimon & Mohammad Javad Sheikh & Mohammad Sayrani, 2024. "The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty," Risks, MDPI, vol. 12(4), pages 1-33, April.
    12. Wang, Jingru & Liu, Tinghua & Aziz, Noshaba & Sui, Hongguang, 2024. "Exploring the role of trade credit in facilitating low-carbon development: Insights from Chinese enterprises," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    13. Grzegorz Zimon & Dominik Zimon, 2020. "Quality Management Systems and Working Capital SMEs in GPO—A Case of Poland," Administrative Sciences, MDPI, vol. 10(4), pages 1-13, October.
    14. David Winkelmann & Frederik Tolkmitt & Matthias Ulrich & Michael Romer, 2022. "Integrated storage assignment for an e-grocery fulfilment centre: Accounting for day-of-week demand patterns," Papers 2209.03998, arXiv.org, revised May 2023.
    15. Qi, Ruijuan & Ma, Guowei & Liu, Chang & Zhang, Qiwen & Wang, Qianyi, 2024. "Enterprise digital transformation and supply chain resilience," Finance Research Letters, Elsevier, vol. 66(C).
    16. Cengizhan Karaca, 2023. "Dynamics of Trade Credit, Bank Credit Extension, Sustainable Economic Growth, and Imports: Evidence from the European Non-Financial Sector," Sustainability, MDPI, vol. 15(17), pages 1-24, August.
    17. Ahsan Akbar & Minhas Akbar & Marina Nazir & Petra Poulova & Samrat Ray, 2021. "Does Working Capital Management Influence Operating and Market Risk of Firms?," Risks, MDPI, vol. 9(11), pages 1-20, November.
    18. Ahmed, Shamima & Akhtaruzzaman, Md & Le, Van & Nath, Tamal & Rahman, Molla Ramizur, 2024. "Interconnectedness in the FOREX market during the high inflation regime: A network analysis," Research in International Business and Finance, Elsevier, vol. 71(C).
    19. Vidyadhar V. Gedam & Rakesh D. Raut & Nishant Agrawal & Qingyun Zhu, 2023. "Critical human and behavioral factors on the adoption of sustainable supply chain management practices in the context of automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 120-133, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:jisscm:v:18:y:2025:i:1:p:1-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.