This study aims to explore the connotation of “Guanxi” within contemporary Chinese marketing channels and to construct and verify a global management model. The objective is to examine how instrumental and emotional dimensions of Guanxi influence enterprise operations and management processes. A hybrid research methodology combining qualitative and quantitative approaches was employed. In-depth interviews with 30 dealer executives provided qualitative insights, while a large-scale survey with 305 valid responses facilitated quantitative analysis. SPSS22.0 and LISREL8.8 were utilized for data analysis, including reliability, validity, hypothesis testing, and structural equation modeling (SEM). The findings reveal that Guanxi is multi-dimensional, comprising both instrumental and emotional components. Instrumental Guanxi includes factors such as status, prestige, credibility, and decision-making power, while emotional Guanxi encompasses trust, emotional connection, and mutual respect. Both dimensions significantly affect professionalism, shared values, contact frequency, and popularity within marketing channels. Hypothesis testing confirmed the significant relationships between these variables, except for the non-significant impact of popularity on instrumental Guanxi. The mediating effects of flexibility and supervision on the relationship between Guanxi and corporate performance were also significant, highlighting the mechanisms through which Guanxi influences organizational outcomes. Moderating effects of perceived internal incentive fairness and digital collaboration capabilities further amplify these relationships. Finaly, the study underscores the dual importance of strategic utility and emotional resonance in Guanxi, providing a robust model for understanding its impact on business management. These insights are valuable for both researchers and practitioners aiming to leverage Guanxi in enhancing organizational performance and relational strategies.
The study aims to explain the relationship between the effectiveness of a business and its management through the analysis of working capital. The findings prove the complementary relationship. The analysis of working capital will always have a significant impact on the effectiveness of business management. The main objective of any corporation is to be effective in business, which can be achieved by analyzing the working capital. The result shows that analysis of working capital based on factors like operational efficiency, the company’s earnings and profitability, cash management, corporate receivable management, and corporate inventory management creates room for improvement and effectiveness in business management. Firms might enhance finances for business expansion by lowering their working capital requirements. It has also been revealed that there is a considerable difference in industries across time. It was observed that there is a high association between working capital efficiency and firm profitability. A highly efficient corporation is less vulnerable to liquidity risk and is also self-sufficient in terms of external finance. Numerous studies have been done to regulate the true rapport between working capital investments and their impact on financial presentation. It demonstrates that effective investment in working capital management may boost profitability and business value. The relationship between accounting and finance was explained by measuring working capital management in demand to illustrate the status of profitability. It was suggested that accountants take a more professional approach to updating their accounting and finance skills in their organization through effective working capital management.
This study aims to develop and validate a strategic model tailored to the unique challenges and contexts faced by micro, small, and medium-sized enterprises (MSMEs) in Ecuador, enhancing their operational efficiency and access to financing. Employing a quantitative approach, the research utilized a non-experimental, cross-sectional design to gather data from a sample of 358 companies. The study revealed that MSMEs are significantly hindered by limited access to financing, lack of managerial skills, and technological gaps. Despite these challenges, MSMEs demonstrated considerable adaptability and resilience, underscoring their critical role in the local economy. The strategic model proposed leverages Porter’s Diamond Model to identify and address the specific competitive and operational challenges encountered by these enterprises. Key findings include the necessity for enhanced financial literacy, simplified regulatory frameworks, and the integration of digital technologies to improve competitiveness. The proposed model focuses on strategic training, fostering innovation, and creating a more supportive financing environment. The implications of this study are profound, suggesting that policymakers and practitioners should streamline regulatory processes, enhance financial and technological support frameworks, and provide tailored training programs. These strategies are intended to bolster the sustainability and growth of MSMEs, contributing to broader economic development. This research contributes to the academic literature by providing empirical evidence on the challenges faced by MSMEs in developing economies and proposing a contextually adapted strategic model to mitigate these challenges, thereby enhancing their economic impact and sustainability.
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