Date of Conferral

2022

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Cheryl Lentz

Abstract

Financial performance is a challenge for business managers in the e-commerce industry that lack the knowledge to meet their operational objectives consistently. Business managers are concerned with poor financial performance due to the adverse impact on business sustainability. Grounded in total quality management theory, the purpose of this quantitative correlational study was to examine the relationship between working capital management (WCM), operating expense ratio (OER), and e-commerce financial performance. Archival data were collected from 107 small- to medium-sized publicly traded e-commerce businesses headquartered in the United States from 2019 to 2021. The results of the multiple linear regression were significant F(2, 104) = 4.684, p < 0.001, R2 = 1.000. In the final model, WCM and OER were statistically significant with WCM (β = -0.34, t = -9332835.434, p < .001) accounting for a lesser contribution to the model than OER (β = -1.016, t = -275081494.2, p < .001). The key recommendation is for business managers to manage the cost of selling their produced product or service holistically together and not separately. The implications for positive social change include potentially helping business managers to increase profitability through WCM and OER optimization allowing organizations to invest in targeted vendors, communities, and valuable publicly traded company stock.

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