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Companies must successfully finance their supply chains if they are to maintain their competitive advantage. Specifically, asset management in a supply chain is an essential component of improving one's financial stance. This study examines operational working capital management in the Russian automotive supply chain using the transaction cost theory (TCE) perspective. It considers working capital management (WCM) models with financial supply chain analysis using cash conversion cycles (CCC) and return on assets (ROA) as measurements. Companies operating with efficient WCM models are usually the leaders and the most powerful actors in the supply chain. Overall, according to our analysis long accounts payable payment period are prevalent, inventory levels high and CCCs short. Further, the most profitable firms are those that pay their suppliers promptly. The WCM models based on the data of this study may contribute to deliberate strategies and choices regarding the optimal governance structures of supply chains.

Purpose – The purpose of this paper is to develop strategies for financial working capital management and to present previous literature on financial working capital management and its measures. Design/methodology/approach – Qualitative comparative analysis is used to formulate the strategies, and the variables in the analysis have been selected from previous literature. Empirical data consists of 91 companies listed in the Helsinki Stock Exchange during 2008-2012. Findings – The results indicate 11 possible strategies for financial working capital management which all aim at increasing financial working capital. There are suitable strategies for all companies independent from their profitability, capital intensity or working capital requirements. Research limitations/implications – The presented strategies have been created theoretically and have not been tested in companies, which could be done in future research. Originality/value – This study has three contributions. First, previous literature on financial working capital management is reviewed. Second, a novel measure for financial working capital is developed. Third, strategies for financial working capital management are presented.

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Purpose – The cash conversion cycle (CCC) is widely used in the academic studies of working capital management and supply chain efficiency. The purpose of this paper is to introduce a modification of this measure that takes into account advance payments as a component of operational working capital. Design/methodology/approach – A new measure, the modified cash conversion cycle (mCCC) is introduced and tested with empirical data of companies in Helsinki Stock Exchange. Findings – The mCCC reveals the real efficiency of operational working capital in companies that receive advance payments to a remarkable extent. Research limitations/implications – The mCCC can be used in empirical analysis in academic studies. In this paper, the empirical data are used only for testing the mCCC. The paper concerns received advance payments, but the mCCC can also be extended also to other components of operational working capital ignored by the traditional CCC. Practical implications – The paper offers insights into the variations of CCC for class teachers, and business practitioners, particularly financiers, who deal with operational working capital, cash flow predictions and calculations. Originality/value – There are current items that may have a remarkable effect on operational working capital, but traditionally only inventories, accounts receivable and accounts payable are discussed. The authors argue that also other current items should be taken into account, if they affect the efficiency of operational working capital. The new mCCC is encouraged to be used instead of the CCC when observing working capital management.