Sustainable Working Capital Management in Green Supply Chains
DOI:
https://doi.org/10.70112/ajms-2026.15.1.4308Keywords:
Working Capital Efficiency, Green Supply Chains, Sustainable Finance, Panel Data RegressionsAbstract
Sustainable working capital management in green supply chains represents a strategic fusion of financial efficiency and environmental stewardship, aimed at enhancing both economic performance and ecological responsibility. This study investigates the dynamics of sustainable working capital management practices within green-oriented supply networks, particularly focusing on how efficient management of current assets and liabilities aligns with sustainable environmental objectives. By analyzing secondary data from selected environmentally responsible manufacturing firms listed on BSE Ltd., the research uses panel data regression to explore the impact of inventory turnover, receivables collection period, and payable deferral strategies on firm profitability and liquidity. The random-effects model test results indicate that SI, firm size, leverage, inflation, GDP growth, profitability, and technology adoption remain significant (positively or negatively) determinants of working capital efficiency. The findings reveal that firms integrating green practices into their working capital structures experience improved operational efficiency, cost savings, and better market valuations. Moreover, sustainable supply chain financing and reduced carbon footprints emerge as significant mediators in strengthening firm resilience and stakeholder trust. The implications are particularly relevant for India, where sustainable industrial growth is crucial.
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