The joint impact of working capital and platform-economy on firm profitability: The case of e-business model in transition country

Abstract

This study examines the impact of traditional working capital management (WCM) and modern technological factors, specifically digital communications with customers as part of a customer relationship management strategy (CRM), on the performance of retail consumer-focused industrial and service firms in Russia. Panel data regression analysis is used to determine the individual impact of each strategy on profitability and model the combined effect of the two strategies. The results are presented through a 3D visualization, which highlights the significant positive impact of WCM and CRM on firm profitability. The study concludes that an effective combination of the two strategies can lead to a significant increase in profitability for companies operating in the retail consumer industry in Russia.

Keywords

• Working capital management
• CRM
• Digital customer communications
• Social media
• Firm profitability
• Moderation effects