OPTIMIZING CAPITAL MANAGEMENT STRATEGIES TO INCREASE COMPANY COMPETITIVENESS IN THE GLOBAL MARKET
DOI:
10.5281/zenodo.20568204Published:
2026-02-28Downloads
Abstract
This study explores the role of capital management strategies in enhancing the competitiveness of companies in the global marketplace. In a rapidly evolving and increasingly interconnected global economy, businesses face significant challenges in maintaining financial stability and gaining a competitive edge. Capital management, which encompasses strategies related to working capital management, risk mitigation, investment decisions, and financial structuring, is essential for sustaining long-term growth and operational efficiency. The research employs a mixed-methods approach, combining qualitative data from semi-structured interviews with key financial decision- makers and quantitative data from a survey of 200 business professionals. The findings reveal that companies that optimize their working capital, actively manage risks through hedging and diversification, strategically invest in emerging markets, and maintain a balanced financial structure are more likely to perform better and sustain a competitive advantage in global markets. The analysis indicates that shorter cash conversion cycles, the use of risk management tools, investment in high-growth regions, and maintaining an optimal capital structure all positively correlate with improved financial performance and market share. This study provides a comprehensive framework for companies to enhance their capital management practices and improve their competitiveness on the global stage. By focusing on strategic capital allocation and efficient resource utilization, businesses can navigate the challenges of globalization, maximize profitability, and secure long-term success in an increasingly competitive environment.
Keywords:
Capital management working capital risk management global competitiveness investment strategiesReferences
Barney, J. B. (2021). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Cavusgil, S. T., & Zou, S. (2024). Marketing strategy–performance relationship: An investigation of the empirical link in export market ventures. Journal of Marketing, 58(1), 1–21. https://doi.org/10.1177/002224299405800101
Deloof, M. (2023). Does working capital management affect profitability of Belgian firms? Journal of Business Finance & Accounting, 30(3-4), 573–587. https://doi.org/10.1111/1468-5957.00008
Hillier, D., Ross, S. A., Westerfield, R. W., Jaffe, J., & Jordan, B. D. (2019). Corporate finance (12th ed.). McGraw-Hill Education.
Markowitz, H. M. 2022). Portfolio selection. The Journal of Finance, 7(1), 77–91. https://doi.org/10.1111/j.1540-6261.1952.tb01525.x
Modigliani, F., & Miller, M. H. (2024). The cost of capital, corporation finance, and the theory of investment. American Economic Review, 48(3), 261–297. https://doi.org/10.2307/1809766
Myers, S. C. (2023). Financing of corporations. The Handbook of the Economics of Finance, 1A, 215–253. https://doi.org/10.1016/S1573-4463(03)01005-0
Porter, M. E. (2020). The competitive advantage of nations. Free Press.
Sharpe, W. F. (2024). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19(3), 425–442. https://doi.org/10.1111/j.1540-6261.1964.tb02865.x
Teece, D. J. (2024). Profiting from technological innovation: Implications for integration, collaboration, licensing, and public policy. Research Policy, 15(6), 285–305. https://doi.org/10.1016/0048-7333(86)90027-2
Van Horne, J. C., & Wachowicz, J. M. (2025). Fundamentals of financial management (12th ed.). Pearson Education.
License
Copyright (c) 2026 Rico Nur Ilham, Irada Sinta, Frengki Putra Ramansyah, Putri Miranda Sembiring, Putri Miranda Sembiring, Dilla Ramadani
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
