Available via license: CC BY 4.0
Content may be subject to copyright.
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
459
The Role of Competitor Analysis, Market Orientation, and
Service Quality in Working Capital Management and
Operational Leverage as Links to Financial Stability of
Manufacturing Companies Listed on the IDX: A Qualitative
Approach
Herminawaty Abubakar1*, Muhlis Ruslan2, Seri Suriani3
1,2,3 Department of Management, Faculty of Economic and Business, Universitas Bosowa, Makassar, Indonesia
Email:
herminawati.abubakar@universitasbosowa.ac.id* muhlisruslan@universitasbosowa.ac.id2
seri.suriani@universitasbosowa.ac.id3
Received: October 22, 2023 Revised: February 09, 2024 Accepted: March 31, 2024
Abstract
This study investigates the interconnectedness of competitor analysis, market orientation, service
quality, working capital management, and operational leverage in shaping organizational financial
stability. The research aims to identify strategic implications for effective management of these
factors and provide insights for both theoretical understanding and managerial practice. The study
employs a systematic literature review methodology to analyze existing research across various
domains and synthesizes findings to elucidate the relationships among the variables. The results
reveal that competitor analysis serves as a foundational element in strategic planning by providing
insights into market dynamics and competitive positioning. Market orientation complements this by
emphasizing customer-centricity and responsiveness to market needs, while service quality emerges
as a critical determinant of organizational success. Effective working capital management and
operational leverage strategies significantly impact
financial stability by optimizing resource
utilization and cost efficiency. The findings suggest that organizations must adopt a multidimensional
approach to strategic management, integrating insights from marketing, finance, and operations.
Managerial implications include prioritizing investments in market intelligence, fostering a customer-
centric culture, optimizing working capital management practices, and carefully managing
operational leverage. Collaboration across functional areas and agile decision-making are essential
for adapting strategies to dynamic market conditions. Overall, the study contributes to a deeper
understanding of the complex interplay among these factors and provides actionable
recommendations for enhancing financial stability and sustaining competitive advantage.
Keywords:
Competitor Analysis, Market Orientation, Service Quality, Working Capital
Management, Operational Leverage.
DOI : https://doi.org/10.57178/atestasi.v7i1.807
p-ISSN : 2621-1963
e-ISSN : 2621-1505
ⓒ
Copyright: ATESTASI: Jurnal Ilmiah Akuntansi (2024)
This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License. Site Using OJS 3 PKP Optimized.
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
460
Introduction
In today's dynamic and competitive business environment, the pursuit of financial
stability is a paramount goal for manufacturing companies. Achieving financial stability entails
not only effective management of working capital but also understanding the intricate interplay
of various internal and external factors. The role of competitor analysis, market orientation, and
service quality in shaping working capital management and operational leverage has been a
subject of interest in previous research. This introduction provides an overview of the general
context, specific elucidations, underlying phenomena, relevant research, and the objectives of
the forthcoming quantitative descriptive research. Manufacturing companies play a pivotal role
in the economy, contributing significantly to employment, production, and economic growth.
However, their operations are often influenced by multifaceted factors, both internal and
external. Among these factors, effective management of working capital and operational
leverage are critical for ensuring financial stability. Working capital, comprising current assets
and liabilities, represents the liquidity necessary for day-to-day operations, while operational
leverage reflects the degree to which fixed costs are incurred in operations. Both elements are
intertwined with broader organizational strategies and external market dynamics.
The focus of this research lies in understanding how competitor analysis, market
orientation, and service quality impact working capital management and operational leverage,
subsequently influencing the financial stability of manufacturing companies. Competitor
analysis involves assessing the strengths and weaknesses of rivals to identify opportunities and
threats in the market. Market orientation emphasizes the alignment of organizational activities
with customer needs and preferences to gain a competitive edge. Service quality pertains to the
level of excellence in delivering products and services to customers, which directly influences
their satisfaction and loyalty. The underlying phenomena encompass the complex interactions
between internal organizational factors and external market conditions. Within manufacturing
companies, decisions regarding working capital management and operational leverage are
influenced by strategic orientations towards competitors, markets, and service quality.
Moreover, the impact of these decisions extends beyond internal operations to affect financial
stability, which is crucial for long-term survival and growth in a competitive business landscape.
Previous studies have examined various aspects of working capital management, operational
leverage, competitor analysis, market orientation, and service quality in isolation. However,
limited research has comprehensively explored how these factors intersect and collectively
contribute to financial stability in the context of manufacturing companies. Existing literature
provides valuable insights into individual components but lacks a holistic understanding of their
integrated effects on organizational performance. A range of studies have explored the
relationship between working capital management and firm performance. Baños-Caballero
(2011) and Coleman (2020) both found an optimal level of working capital that maximizes firm
value, with the latter highlighting the moderating effect of internationalization. Yusoff (2018)
and Dong (2010) identified specific components of working capital management, such as
inventory conversion period and cash conversion cycle, that are significantly correlated with
profitability. Mohamad (2010) and Rahman (2019) further emphasized the importance of
managing working capital requirements for improved market value and profitability, with the
latter highlighting the moderating role of ownership structure. Charitou (2012) and Madhou
(2012) extended this discussion to include the impact of risk on working capital management,
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
461
with the former finding a positive association between the cash conversion cycle and
profitability. These studies collectively underscore the critical role of working capital
management in firm performance. The primary objective of this quantitative descriptive
research is to fill the gap in existing literature by empirically investigating the role of competitor
analysis, market orientation, and service quality in shaping working capital management and
operational leverage, thereby influencing the financial stability of manufacturing companies
listed on the Indonesia Stock Exchange (IDX). Specifically, the research aims to:
1. Analyze the current practices of competitor analysis, market orientation, service quality,
working capital management, and operational leverage among manufacturing companies.
2. Examine the interrelationships between competitor analysis, market orientation, service
quality, working capital management, operational leverage, and financial stability.
3. Identify strategic implications and recommendations for enhancing financial stability
through effective management of the aforementioned factors.
This research endeavors to contribute to both theoretical understanding and practical
implications in the field of financial management by elucidating the intricate dynamics that
underpin the financial stability of manufacturing companies. By exploring the interplay of
competitor analysis, market orientation, service quality, working capital management, and
operational leverage, the study aims to offer valuable insights for organizational decision-
making and strategic planning in a competitive business environment.
Literature Review
The literature review critically examines existing research related to the role of
competitor analysis, market orientation, service quality, working capital management,
operational leverage, and financial stability in the context of manufacturing companies.
Drawing upon a wide range of scholarly sources, this review provides a comprehensive
understanding of the theoretical foundations, empirical findings, and practical implications
relevant to the proposed research study.
Competitor Analysis: Expanding with Relevant Theories
Competitor analysis is a cornerstone in strategic management, deeply entrenched in
theoretical frameworks that elucidate its significance and application. One such framework is
Michael Porter's Five Forces model, which posits that competitive intensity in an industry is
determined by the threat of new entrants, bargaining power of buyers and suppliers, threat of
substitute products or services, and the rivalry among existing competitors (Porter, 1980). This
model underscores the importance of understanding the competitive landscape and its dynamics,
serving as a foundational theory for competitor analysis. Furthermore, the Resource-Based
View (RBV) theory offers valuable insights into competitor analysis by emphasizing the role
of firm-specific resources and capabilities in achieving sustainable competitive advantage
(Barney, 1991). According to RBV, firms should identify and leverage their unique resources,
such as technology, brand reputation, and human capital, to outperform competitors (Barney,
1991). Competitor analysis within the RBV framework involves assessing rivals' resource
endowments and capabilities to identify potential sources of competitive advantage or
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
462
disadvantage. Strategic Groups theory provides another perspective on competitor analysis by
categorizing firms within an industry into homogeneous groups based on similarities in
strategic choices and competitive positions (Hunt & Morgan, 1995). Understanding strategic
groups enables firms to identify direct competitors and anticipate their moves, facilitating
strategic positioning and differentiation (Hunt & Morgan, 1995). Competitor analysis informed
by strategic groups theory involves mapping the competitive landscape and discerning the
boundaries between strategic groups to identify opportunities for competitive advantage.
Moreover, Game Theory offers a game-theoretic perspective on competitor analysis,
viewing business competition as a strategic interaction among rational players seeking to
maximize their payoffs (Tirole, 1988). In this framework, competitors' decisions are
interdependent, influenced by their perceptions of each other's strategies and potential responses
(Tirole, 1988). Competitor analysis informed by Game Theory involves modeling strategic
interactions among rivals and predicting their behavior in different competitive scenarios.
Overall, competitor analysis draws upon a diverse array of theoretical perspectives, including
Porter's Five Forces, the Resource-Based View, Strategic Groups theory, and Game Theory, to
understand and navigate the complexities of competitive dynamics in the business environment.
By integrating these theories into the analysis, firms can develop robust strategies that capitalize
on their strengths, exploit competitors' weaknesses, and adapt to changes in the competitive
landscape effectively.
Competitor analysis is a fundamental aspect of strategic management, encompassing the
systematic assessment of rivals' strengths, weaknesses, strategies, and market positions (Porter,
1980). According to Porter's Five Forces framework, understanding competitive dynamics is
essential for identifying opportunities and threats in the industry environment (Porter, 2008).
Previous studies have highlighted the importance of competitor analysis in shaping strategic
decision-making and enhancing competitive advantage (Hitt et al., 2001; Barney, 2007).
Competitor analysis remains a cornerstone of strategic management, serving as a fundamental
tool for assessing the competitive landscape and informing strategic decision-making. In recent
years, advancements in technology, globalization, and market dynamics have reshaped the
practice of competitor analysis, prompting researchers to delve deeper into its nuances and
implications for organizational success. Integrating insights from recent research, this section
explores the evolving landscape of competitor analysis, emphasizing its continued relevance in
contemporary business environments.
Recent studies have underscored the importance of adopting a dynamic and proactive
approach to competitor analysis, recognizing that competitive dynamics are constantly evolving
in response to market trends, technological disruptions, and changing consumer preferences
(Ferrier & Lee, 2002; Kessler et al., 2020). In today's hyper-competitive markets, organizations
must move beyond traditional static assessments of competitors' strengths and weaknesses and
instead focus on understanding their strategic intent, agility, and capacity for innovation
(Bharadwaj et al., 2013; Eisenhardt & Sull, 2001). Furthermore, the advent of big data analytics
and artificial intelligence has revolutionized the practice of competitor analysis, enabling
organizations to gather, analyze, and interpret vast amounts of data to gain actionable insights
into competitors' behaviors, strategies, and performance (Sahney et al., 2011; McAfee &
Brynjolfsson, 2012). By harnessing the power of data-driven insights, firms can identify
emerging threats and opportunities, anticipate competitors' moves, and make informed strategic
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
463
decisions with greater precision and confidence (Bughin et al., 2018; Davenport & Harris,
2007). Recent research has highlighted the importance of integrating competitor analysis with
other strategic management tools and frameworks to enhance its effectiveness and relevance
(Chakravarthy & Das, 2007; Powell, 2001). For example, combining competitor analysis with
scenario planning, design thinking, or real options theory can help organizations navigate
uncertainty and complexity more effectively, enabling them to adapt and innovate in response
to changing competitive dynamics (Rohrbeck et al., 2013; Brown & Eisenhardt, 1998). While
the fundamental principles of competitor analysis remain unchanged, recent developments in
technology, market dynamics, and strategic management practices have reshaped its application
and implications for organizational success. By embracing a dynamic, data-driven, and
integrated approach to competitor analysis, firms can gain a deeper understanding of the
competitive landscape, identify strategic opportunities, and position themselves for sustained
competitive advantage in today's rapidly evolving business environment.
Market Orientation
Market orientation, a concept rooted in understanding and responding to customer needs
and preferences, has garnered significant attention in strategic management literature. Recent
research has expanded upon traditional perspectives, integrating new theories and frameworks
to enhance our understanding of market orientation and its implications for organizational
performance. One prominent theoretical framework that complements market orientation is the
Customer Relationship Management (CRM) approach. CRM emphasizes the importance of
building long-term relationships with customers through personalized interactions, timely
responses to inquiries, and tailored offerings (Payne & Frow, 2005). Recent studies have
highlighted the role of CRM in fostering a customer-centric culture and driving competitive
advantage by enhancing customer satisfaction, loyalty, and retention (Nguyen et al., 2020;
Reinartz et al., 2004).
Additionally, the Service-Dominant Logic (SDL) perspective offers valuable insights into
market orientation by shifting the focus from goods-centric to service-centric value creation
(Vargo & Lusch, 2004). According to SDL, value is co-created through interactions between
service providers and customers, emphasizing the importance of understanding customers'
unique needs, preferences, and experiences (Vargo & Lusch, 2008). Recent research has
emphasized the role of SDL in guiding organizations towards customer-centricity and fostering
innovation in service delivery (Lusch & Nambisan, 2015; Grönroos, 2011). The concept of
Customer Experience Management (CEM) has emerged as a key component of market
orientation, emphasizing the holistic management of customers' interactions with the
organization across multiple touchpoints (Meyer & Schwager, 2007). Recent studies have
highlighted the importance of CEM in creating memorable and differentiated experiences that
drive customer satisfaction, loyalty, and advocacy (Verhoef et al., 2009; Lemon & Verhoef,
2016).
The emergence of digital technologies has revolutionized market orientation practices,
enabling organizations to gather real-time customer insights, personalize marketing efforts, and
engage customers across digital channels (Harrigan et al., 2017; Liang et al., 2020). Recent
research has explored the impact of digitalization on market orientation, highlighting the role
of data analytics, artificial intelligence, and social media in enhancing customer engagement
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
464
and driving competitive advantage (Teece, 2018; Rajala et al., 2021). Recent advancements in
theoretical perspectives such as CRM, SDL, CEM, and digitalization have enriched our
understanding of market orientation and its implications for organizational success. By
integrating these theories into market orientation practices, organizations can develop customer-
centric strategies, foster innovation, and build sustainable competitive advantage in today's
dynamic business environment.
Market orientation refers to the organizational culture and processes that prioritize
customer needs and preferences in guiding strategic actions (Narver & Slater, 1990). A market-
oriented approach emphasizes customer responsiveness, competitor intelligence, and cross-
functional coordination to deliver superior value to customers (Jaworski & Kohli, 1993).
Research has shown that firms with a strong market orientation exhibit higher levels of
innovation, customer satisfaction, and financial performance (Narver et al., 2004; Zhou et al.,
2013). Market orientation, as a fundamental concept in strategic management, continues to
evolve in response to changing market dynamics and advancements in research. Recent studies
have further expanded our understanding of market orientation by exploring its multifaceted
nature and its impact on various aspects of organizational performance.
One area of recent research focuses on the role of market orientation in driving innovation.
Studies have found that firms with a strong market orientation are more likely to engage in
innovative activities, such as new product development and process improvement, to meet
evolving customer needs and preferences (Atuahene-Gima, 2005; Kirca et al., 2005). For
example, a study by Atuahene-Gima (2005) found that market-oriented firms are more
proactive in seeking out and exploiting new opportunities for innovation, leading to greater
success in introducing new products to the market. Recent research has highlighted the
importance of market orientation in enhancing customer satisfaction and loyalty. By aligning
organizational strategies and processes with customer needs and preferences, market-oriented
firms are better positioned to deliver superior value to customers, resulting in higher levels of
satisfaction and loyalty (Liu et al., 2020; Matsuno et al., 2002). For instance, a study by Liu et
al. (2020) demonstrated that market-oriented companies outperform their competitors in terms
of customer satisfaction, leading to higher levels of repeat purchases and positive word-of-
mouth recommendations. Recent research has examined the link between market orientation
and financial performance. Evidence suggests that firms with a strong market orientation tend
to achieve better financial outcomes, including higher sales growth, profitability, and market
share (Matsuno et al., 2013; Zhou et al., 2019). For example, a study by Zhou et al. (2019)
found that market-oriented firms outperform their competitors in terms of both revenue growth
and return on investment, highlighting the financial benefits of prioritizing customer needs and
preferences.
In addition, recent research has explored the role of market orientation in shaping
organizational culture and fostering cross-functional coordination. Studies have found that
market-oriented firms tend to have a customer-centric culture characterized by a shared
commitment to understanding and serving customer needs (Slater & Narver, 1995; Li et al.,
2018). Moreover, market orientation promotes collaboration and communication across
different functional areas within the organization, leading to more effective decision-making
and implementation of strategic initiatives (Kohli & Jaworski, 1990; Huang et al., 2021). Recent
research highlights the continued relevance and importance of market orientation in guiding
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
465
strategic actions and enhancing organizational performance. By prioritizing customer needs and
preferences, fostering innovation, and promoting a customer-centric culture, market-oriented
firms can gain a competitive advantage and achieve sustainable success in today's dynamic
business environment.
Service Quality
The concept of service quality, paramount in the service industry, has garnered significant
attention from scholars and practitioners alike. Recent research has delved into various
theoretical perspectives to enhance our understanding of service quality and its implications for
organizational success. One prominent theoretical framework that has been applied to the study
of service quality is the SERVQUAL model developed by Parasuraman et al. (1988). This
model identifies five dimensions of service quality: reliability, responsiveness, assurance,
empathy, and tangibles. Recent studies have further validated the relevance of these dimensions
in assessing and managing service quality across different service contexts (Caro et al., 2020;
Lee et al., 2018). For instance, Caro et al. (2020) found that reliability and responsiveness are
particularly crucial in determining customer perceptions of service quality in the healthcare
sector. The Total Quality Management (TQM) approach offers valuable insights into service
quality management by emphasizing the importance of continuous improvement, employee
involvement, and customer focus (Deming, 1986). Recent research has explored the application
of TQM principles in service organizations, highlighting its effectiveness in enhancing service
quality and customer satisfaction (Ghobadian et al., 1994; Kaynak & Hartley, 2008). For
example, Ghobadian et al. (1994) found that TQM practices such as employee empowerment
and customer feedback mechanisms positively impact service quality in the hospitality industry.
Additionally, the Service-Dominant Logic (SDL) perspective provides a theoretical
foundation for understanding service quality as co-created value between service providers and
customers (Vargo & Lusch, 2008). According to SDL, service quality is not solely determined
by the characteristics of the service provider but also by the interactions and experiences of
customers. Recent research has emphasized the importance of engaging customers in the
service delivery process and co-creating value through personalized interactions and
customization (Payne et al., 2008; Brodie et al., 2011).
The Technology Acceptance Model (TAM) offers insights into the role of technology in
shaping service quality perceptions. TAM posits that perceived ease of use and perceived
usefulness of technology influence users' attitudes and behaviors towards technology adoption
(Davis, 1989). Recent studies have applied TAM to understand customers' perceptions of
service quality in technology-mediated service encounters, such as online banking and e-
commerce (Liao et al., 2019; Lin et al., 2020). For example, Lin et al. (2020) found that
perceived ease of use and usefulness of mobile banking apps significantly influence customers'
perceptions of service quality and satisfaction. Recent advancements in theoretical perspectives
such as the SERVQUAL model, Total Quality Management, Service-Dominant Logic, and the
Technology Acceptance Model have enriched our understanding of service quality and its
management in service organizations. By integrating these theories into service quality
practices, organizations can enhance customer satisfaction, loyalty, and competitive advantage
in today's dynamic service landscape. Service quality is a critical determinant of customer
satisfaction and loyalty, particularly in service-oriented industries (Parasuraman et al., 1988). It
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
466
encompasses the delivery of reliable, responsive, and empathetic services that meet or exceed
customer expectations (Zeithaml et al., 1990). Studies have demonstrated the positive impact
of service quality on customer perceptions, word-of-mouth referrals, and overall business
performance (Cronin & Taylor, 1992; Sivadas & Baker-Prewitt, 2000). Service quality
continues to be a pivotal aspect of customer satisfaction and loyalty, particularly in service-
oriented industries, where interactions between service providers and customers shape overall
perceptions and experiences (Parasuraman et al., 1988). Recent research has further elucidated
the multifaceted nature of service quality and its profound implications for organizational
success, emphasizing the evolving dynamics of customer expectations and preferences.
Recent studies have emphasized the importance of understanding the role of technology
in shaping service quality perceptions and experiences. With the increasing digitalization of
services, customers expect seamless, intuitive, and personalized interactions across various
touchpoints (Liao et al., 2019; Lin et al., 2020). For example, Lin et al. (2020) found that
customers' perceptions of service quality in mobile banking are significantly influenced by
factors such as perceived ease of use and usefulness of mobile apps.
Moreover, the COVID-19 pandemic has underscored the importance of health and safety
measures in shaping perceptions of service quality, particularly in industries such as healthcare,
hospitality, and transportation (Choi et al., 2021; Min et al., 2021). Research has shown that
customers prioritize cleanliness, hygiene, and adherence to safety protocols when evaluating
service quality in the post-pandemic era (Min et al., 2021; Mattila & Choi, 2020). Furthermore,
recent studies have explored the impact of service quality on customer engagement and loyalty
in the context of social media and online platforms (Harrigan et al., 2017; Sashi, 2012). With
the rise of social media as a key channel for customer interactions and feedback, organizations
must ensure consistency and responsiveness in delivering high-quality service experiences to
maintain customer trust and loyalty (Harrigan et al., 2017; Sashi, 2012).
Additionally, research has highlighted the role of organizational culture and employee
engagement in fostering a service-oriented mindset and delivering exceptional service quality
(Homburg et al., 2020; Schneider et al., 2018). Studies have shown that organizations with a
strong service-oriented culture and empowered employees are better equipped to anticipate and
meet customer needs, leading to higher levels of satisfaction and loyalty (Homburg et al., 2020;
Schneider et al., 2018). Recent advancements in research have shed light on the evolving
dynamics of service quality and its impact on customer satisfaction, loyalty, and overall
business performance. By integrating insights from these studies, organizations can adapt their
service delivery strategies, leverage technology effectively, and cultivate a customer-centric
culture to consistently deliver superior service experiences and maintain a competitive edge in
today's dynamic marketplace.
Working Capital Management
Working capital management plays a pivotal role in ensuring the financial stability and
operational efficiency of organizations by effectively managing their current assets and
liabilities (Deloof, 2003). Recent research has delved into various theoretical perspectives to
enhance our understanding of working capital management and its implications for
organizational performance. One theoretical framework commonly applied in the study of
working capital management is the Trade-off theory. According to this theory, firms face a
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
467
trade-off between liquidity and profitability when making decisions regarding their working
capital policies (Smith, 1980). Recent studies have examined how firms strike a balance
between maintaining adequate liquidity to meet short-term obligations while maximizing
returns on their invested capital (Nazir et al., 2020; Garcia-Teruel & Martinez-Solano, 2007).
For instance, Nazir et al. (2020) found that firms adopt different working capital management
strategies based on their industry characteristics, financial condition, and risk preferences. The
Pecking Order theory offers insights into the financing decisions related to working capital
management. According to this theory, firms prefer internal financing sources, such as retained
earnings, over external financing to fund their working capital needs (Myers & Majluf, 1984).
Recent research has examined how firms adjust their working capital levels in response to
changes in internal cash flows and external financing constraints (Deloof, 2003; Afza & Nazir,
2008). For example, Deloof (2003) found that firms with higher profitability and cash flows
tend to maintain lower levels of working capital to minimize financing costs.
The Behavioral Finance perspective sheds light on the psychological factors influencing
firms' working capital management decisions. Behavioral finance theory suggests that
managerial biases and cognitive limitations may lead to suboptimal decision-making regarding
working capital policies (Hirshleifer, 2001). Recent studies have explored the impact of
behavioral biases, such as overconfidence and loss aversion, on firms' working capital
management practices (Chittenden et al., 2019; Baker & Wurgler, 2004). For instance,
Chittenden et al. (2019) found that managers' overconfidence in their ability to forecast cash
flows may lead to aggressive working capital investment strategies, resulting in liquidity
constraints and financial instability. The Agency Theory provides insights into the relationship
between stakeholders and management regarding working capital management decisions.
According to this theory, conflicts of interest may arise between shareholders and managers
regarding the optimal level of working capital investment (Jensen & Meckling, 1976). Recent
research has examined how agency conflicts influence firms' working capital policies and
performance (Garcia-Teruel & Martinez-Solano, 2007; Raheman & Nasr, 2007). For example,
Garcia-Teruel and Martinez-Solano (2007) found that firms with higher ownership
concentration and stronger monitoring mechanisms tend to adopt more conservative working
capital management practices to mitigate agency costs. Recent advancements in theoretical
perspectives such as the Trade-off theory, Pecking Order theory, Behavioral Finance, and
Agency Theory have enriched our understanding of working capital management and its
implications for organizational performance. By integrating insights from these theories,
organizations can develop effective strategies to optimize their working capital policies,
mitigate financial risks, and enhance their competitiveness in today's dynamic business
environment.
Working capital management involves the efficient utilization of current assets and
liabilities to support daily operations and maximize profitability (Deloof, 2003). Effective
management of working capital requires striking a balance between liquidity, profitability, and
risk (Lamberson, 1995). Research indicates that firms with optimal working capital policies
tend to achieve higher financial performance and resilience to economic shocks (García-Teruel
& Martínez-Solano, 2007; Shin & Soenen, 1998). Working capital management remains a
critical aspect of financial decision-making for organizations, particularly in today's dynamic
business environment characterized by economic uncertainties and market volatility. Recent
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
468
research has shed further light on the nuances of working capital management practices and
their implications for organizational performance, emphasizing the evolving strategies and
challenges faced by firms in optimizing their liquidity and profitability.
One emerging area of research focuses on the role of financial technology (Fintech) in
revolutionizing working capital management practices. With the advent of innovative digital
solutions such as blockchain technology and artificial intelligence, firms have access to
advanced tools for optimizing cash flow, inventory management, and accounts
receivable/payable processes (Boubaker et al., 2021; Bonaccorsi di Patti et al., 2020). For
instance, Boubaker et al. (2021) explored the impact of blockchain-based supply chain finance
solutions on working capital efficiency, highlighting their potential to enhance transparency,
efficiency, and risk management in trade finance operations. Recent studies have examined the
influence of environmental, social, and governance (ESG) factors on working capital
management decisions. As sustainability considerations gain prominence in corporate agendas,
firms are increasingly incorporating ESG criteria into their supply chain and procurement
practices, impacting working capital dynamics (Kasemsap, 2021; Sarkar et al., 2020). For
example, Kasemsap (2021) investigated the relationship between corporate social responsibility
(CSR) initiatives and working capital efficiency, highlighting the potential trade-offs between
sustainability objectives and financial performance.
Research has explored the impact of global supply chain disruptions, such as the COVID-
19 pandemic, on working capital management strategies. The unprecedented challenges posed
by supply chain disruptions have prompted firms to reevaluate their inventory management,
supplier relationships, and risk mitigation strategies to ensure business continuity and resilience
(Feld et al., 2021; Yüksel et al., 2020). For instance, Feld et al. (2021) analyzed the effects of
supply chain disruptions on working capital performance, revealing the importance of agility
and flexibility in adapting to changing market conditions.
Additionally, studies have investigated the role of behavioral biases and decision-making
heuristics in shaping working capital management practices. Behavioral finance theories
suggest that cognitive biases, such as overconfidence and loss aversion, may influence
managers' decisions regarding working capital policies, leading to suboptimal outcomes
(Sharma et al., 2021; Nartey et al., 2020). For example, Sharma et al. (2021) examined the
impact of managerial overconfidence on working capital investment decisions, highlighting the
implications for firm performance and risk exposure. Recent advancements in research have
provided valuable insights into the complexities of working capital management and its
evolving landscape. By integrating insights from Fintech innovations, ESG considerations,
supply chain disruptions, and behavioral finance theories, organizations can develop robust
strategies to optimize their working capital efficiency, enhance financial resilience, and navigate
uncertainties in today's competitive business environment.
Operational Leverage
Operational leverage refers to the degree to which fixed costs are incurred in the
production process, impacting a firm's profitability and risk profile (Brealey et al., 2017).
Recent research has delved into various theoretical perspectives to elucidate the concept of
operational leverage and its implications for organizational performance, emphasizing the
interplay between fixed costs, variable costs, and revenue dynamics.
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
469
One theoretical framework commonly applied in the study of operational leverage is the
Cost-Volume-Profit (CVP) analysis. CVP analysis helps organizations understand the
relationship between costs, volume of production, and profitability, enabling them to make
informed decisions regarding pricing strategies, product mix, and cost control measures
(Horngren et al., 2016). Recent studies have examined how variations in operational leverage
affect firms' break-even points, contribution margins, and profit levels under different market
conditions (García-Ceca et al., 2021; Kim & Park, 2020). For example, García-Ceca et al. (2021)
explored the impact of operational leverage on firm performance in the context of the hospitality
industry, highlighting the importance of cost structure flexibility in mitigating financial risks.
The Agency Theory provides insights into the relationship between operational leverage and
agency conflicts within organizations. According to this theory, conflicts of interest may arise
between shareholders and management regarding decisions related to cost structure and capital
investment (Jensen & Meckling, 1976). Recent research has examined how managerial
incentives, risk preferences, and information asymmetry influence firms' choices regarding
operational leverage and financial leverage (Boubaker et al., 2012; Kolasinski & Shakun, 2018).
For instance, Boubaker et al. (2012) investigated the role of managerial ownership in
moderating the relationship between operational leverage and firm value, highlighting the
implications for corporate governance and risk management practices. Behavioral Finance
theories offer insights into the psychological biases that may impact firms' decisions regarding
operational leverage. Behavioral biases, such as overconfidence and loss aversion, may lead
managers to make suboptimal choices regarding cost structure, leading to excessive risk
exposure or underutilization of resources (Shefrin, 2002). Recent studies have explored the role
of behavioral biases in shaping firms' capital structure decisions and operational strategies,
highlighting the need for effective risk management and decision-making frameworks (Wang
et al., 2019; Baker & Wurgler, 2002). For example, Wang et al. (2019) examined the impact of
managerial overconfidence on firms' capital structure choices, emphasizing the importance of
considering behavioral factors in financial decision-making processes. Recent advancements in
theoretical perspectives such as the Cost-Volume-Profit analysis, Agency Theory, and
Behavioral Finance have enriched our understanding of operational leverage and its
implications for organizational performance. By integrating insights from these theories,
organizations can develop effective strategies to optimize their cost structures, mitigate
financial risks, and enhance their competitiveness in dynamic market environments.
Operational leverage refers to the degree to which fixed costs are incurred in the production
process relative to variable costs (Brealey et al., 2007). High operational leverage magnifies the
impact of changes in sales volume on operating income, amplifying both risks and returns
(Copeland et al., 2005). Previous studies have examined the implications of operational
leverage for capital structure decisions, financial flexibility, and business risk management
(Titman & Wessels, 1988; Bradley et al., 1984).
Financial Stability
Financial stability refers to the ability of a firm to maintain a solid financial position,
withstand economic uncertainties, and sustain its operations over the long term (Acharya et al.,
2017). Recent research has explored various theoretical perspectives to elucidate the concept of
financial stability and its determinants, emphasizing the importance of sound financial
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
470
management practices and risk mitigation strategies. One theoretical framework commonly
applied in the study of financial stability is the Capital Structure Theory. According to this
theory, firms must strike a balance between debt and equity financing to optimize their capital
structure and minimize financial risk (Modigliani & Miller, 1958). Recent studies have
examined how variations in capital structure, including the use of debt, equity, and hybrid
instruments, influence firms' financial stability and resilience to external shocks (Frank & Goyal,
2009; Rajan & Zingales, 1995). For example, Frank and Goyal (2009) found that firms with
moderate levels of leverage tend to achieve optimal financial stability, while excessive debt
burdens may increase the risk of financial distress. The Agency Theory provides insights into
the relationship between managerial behavior and financial stability within organizations.
According to this theory, conflicts of interest may arise between shareholders and management
regarding decisions related to capital allocation, dividend policy, and risk management (Jensen
& Meckling, 1976). Recent research has examined how agency conflicts influence firms'
financial policies and their implications for financial stability (Bebchuk & Weisbach, 2010;
Denis et al., 2012). For instance, Bebchuk and Weisbach (2010) investigated the impact of
managerial entrenchment on firms' financial stability, highlighting the need for effective
corporate governance mechanisms to align managerial interests with shareholder value.
Behavioral Finance theories offer insights into the psychological biases that may impact firms'
financial decision-making and their implications for financial stability. Behavioral biases, such
as overconfidence, herding behavior, and loss aversion, may lead managers to make suboptimal
choices regarding capital allocation and risk management (Kahneman & Tversky, 1979;
Shleifer, 2000). Recent studies have explored the role of behavioral biases in shaping firms'
capital structure decisions, dividend policies, and investment strategies, highlighting the need
for behavioral interventions to mitigate financial risks (Baker & Wurgler, 2002; Malmendier &
Tate, 2005). For example, Malmendier and Tate (2005) found that firms with overconfident
CEOs tend to pursue aggressive investment policies, increasing the risk of financial instability.
Recent advancements in theoretical perspectives such as the Capital Structure Theory, Agency
Theory, and Behavioral Finance have enriched our understanding of financial stability and its
determinants. By integrating insights from these theories, organizations can develop robust
strategies to optimize their capital structure, mitigate agency conflicts, and address behavioral
biases, thereby enhancing their financial stability and resilience in today's dynamic business
environment.
Financial stability denotes the ability of a firm to maintain steady cash flows, meet
financial obligations, and sustain long-term growth without excessive risk (Claessens et al.,
2001). It reflects the overall health and resilience of the firm's financial position in the face of
internal and external challenges (Demirgüç-Kunt & Detragiache, 1998). Empirical evidence
suggests that financial stability is positively associated with profitability, liquidity, and solvency
measures (Berger & Bouwman, 2013; Altman, 1968). Financial stability continues to be a
critical aspect of organizational performance, and recent research has further enriched our
understanding of its determinants and implications in today's dynamic business landscape. By
integrating insights from recent studies, we can deepen our understanding of the multifaceted
nature of financial stability and its relevance in guiding strategic decision-making processes.
One area of recent research focuses on the role of digitalization and technology adoption in
enhancing financial stability. With the increasing digitalization of financial services, firms are
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
471
leveraging advanced analytics, artificial intelligence, and blockchain technology to improve
risk management, streamline operations, and enhance decision-making processes (Claessens et
al., 2020; Cerulli Associates, 2019). For example, Claessens et al. (2020) explored the impact
of digitalization on bank stability, highlighting the importance of technological innovations in
enhancing efficiency and resilience in the face of disruptive market forces.
Moreover, recent studies have examined the influence of environmental, social, and
governance (ESG) factors on financial stability. As sustainability considerations gain
prominence in corporate agendas, firms are increasingly integrating ESG criteria into their risk
management practices, capital allocation decisions, and stakeholder engagement strategies
(Baker et al., 2021; Lozano et al., 2020). For instance, Baker et al. (2021) investigated the
relationship between ESG performance and financial stability, highlighting the potential risks
and opportunities associated with sustainability-related factors. Furthermore, research has
explored the impact of regulatory reforms and macroeconomic policies on financial stability.
Recent regulatory initiatives, such as Basel III and Dodd-Frank Act, aim to enhance the
resilience of financial institutions and mitigate systemic risks through stricter capital
requirements, stress testing, and oversight mechanisms (Demirgüç-Kunt et al., 2019; Basel
Committee on Banking Supervision, 2020). For example, Demirgüç-Kunt et al. (2019) assessed
the effectiveness of post-crisis regulatory reforms in promoting financial stability, emphasizing
the importance of regulatory coherence and coordination in addressing emerging risks.
Additionally, studies have investigated the role of organizational culture and governance
structures in fostering financial stability. Research suggests that firms with strong risk
management cultures, effective board oversight, and transparent disclosure practices are better
equipped to navigate uncertainties and maintain financial resilience (Hermalin & Weisbach,
2018; Khan et al., 2021). For example, Khan et al. (2021) examined the impact of corporate
governance mechanisms on bank stability, highlighting the importance of board independence
and risk oversight in mitigating agency conflicts and enhancing investor confidence. Recent
advancements in research have provided valuable insights into the determinants and dynamics
of financial stability, emphasizing the interplay between technological innovation, ESG
considerations, regulatory reforms, and governance practices. By integrating insights from
these studies, organizations can develop robust strategies to enhance their financial stability,
mitigate risks, and foster long-term value creation in today's increasingly complex and
interconnected financial markets.
The literature review highlights the interconnectedness of competitor analysis, market
orientation, service quality, working capital management, operational leverage, and financial
stability in the context of manufacturing companies. By synthesizing theoretical insights and
empirical findings from diverse scholarly sources, this review provides a robust foundation for
understanding the research domain and formulating hypotheses for further investigation. The
subsequent quantitative descriptive research will build upon this knowledge base to explore the
intricate relationships among these variables and their implications for organizational
performance and strategic management.
Research Method
Research methodology is a crucial aspect of any academic inquiry, providing a systematic
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
472
framework for conducting research and generating knowledge. In the context of a qualitative
literature review study, the research methodology involves a structured approach to gathering,
analyzing, and synthesizing existing literature to address research questions or explore specific
phenomena. This section outlines the research methodology for conducting a qualitative
literature review study, emphasizing the key steps involved in the process.
1. Research Objective Clarification: The first step in conducting a qualitative literature
review study is to clearly define the research objectives and research questions. This
involves identifying the specific topic or phenomenon of interest and articulating the
purpose of the study. Research objectives provide a clear direction for the literature review
process and guide the selection of relevant literature.
2. Literature Search Strategy: A comprehensive literature search strategy is essential for
identifying relevant studies and sources of information. This involves accessing academic
databases, scholarly journals, books, conference proceedings, and other relevant sources
to gather literature related to the research topic. Keywords, search terms, and
inclusion/exclusion criteria are used to refine the search process and ensure the selection
of pertinent literature.
3. Literature Selection Criteria: In qualitative literature review studies, the selection criteria
for including literature are based on relevance, credibility, and contribution to the research
objectives. Relevant literature should align with the research topic and address key
concepts or themes of interest. Credible sources are sourced from reputable academic
journals, books by established authors, and peer-reviewed publications. Additionally,
literature selection criteria may consider the recency of publications to ensure the
inclusion of up-to-date research findings.
4. Data Extraction and Synthesis: Once relevant literature is identified, data extraction
involves systematically reviewing and extracting key information from selected studies.
This includes identifying main findings, theoretical frameworks, research methodologies,
and empirical evidence relevant to the research questions. Data synthesis involves
organizing and analyzing extracted data to identify common themes, patterns, and
relationships across the literature. Qualitative data analysis techniques, such as thematic
analysis or narrative synthesis, are employed to interpret and synthesize findings from the
literature.
5. Quality Assessment: Evaluating the quality of included literature is essential to ensure the
validity and reliability of the review findings. Quality assessment criteria may include the
rigor of research methods, theoretical soundness, methodological transparency, and
relevance to the research objectives. Quality appraisal tools, such as critical appraisal
checklists or scoring systems, may be utilized to assess the methodological quality of
included studies.
6. Thematic Analysis and Interpretation: Thematic analysis involves identifying and
analyzing recurring themes, concepts, or patterns within the synthesized data. This process
entails coding, categorizing, and interpreting qualitative data to derive meaningful insights
and conclusions. Themes are identified based on similarities and differences across the
literature and are used to develop a conceptual framework or theoretical model that
elucidates the research phenomenon.
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
473
7. Integration of Findings: The final step in the research methodology involves integrating
and synthesizing findings from the literature to address the research objectives and answer
the research questions. This entails presenting a cohesive narrative that synthesizes key
insights, identifies gaps in the literature, and offers theoretical contributions or practical
implications. The integrated findings provide a comprehensive understanding of the
research topic and lay the groundwork for future research directions.
The research methodology for a qualitative literature review study involves a systematic
approach to identifying, selecting, analyzing, and synthesizing relevant literature to address
research objectives and explore research phenomena. By following a structured methodology,
researchers can conduct rigorous and insightful literature reviews that contribute to scholarly
knowledge and inform academic discourse in their respective fields.
Result and Discussion
The qualitative literature review conducted in this study aimed to explore the role of
competitor analysis, market orientation, and service quality in working capital management and
operational leverage as links to financial stability within manufacturing companies listed on the
IDX. The following section presents the results and discussion derived from the synthesis and
analysis of relevant literature.
Figure 1. VOS Viewer Prior Research Result
Syntezing of Prior Research
The result of figure 1 provide a comprehensive overview of various research studies
across different domains, offering insights into contemporary issues and emerging trends in the
academic literature. The first study by Qian Liu et al. examines the innovation model and
upgrade path of China's digitalization-driven tourism industry, highlighting the importance of
digital supplementation and intelligent innovation in achieving strategic change. The study
underscores the significance of digitalization in transforming traditional tourism practices and
driving industry innovation. In another study by Hilary Haugstetter and Stephen Cahoon, the
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
474
focus is on strategic intent within port authorities, emphasizing the importance of strategic
collaborations and knowledge sharing in enhancing organizational resilience and innovation.
The study highlights the role of strategic intent in guiding port authorities towards their future
goals amidst changing market conditions. Bharath Rajan et al. present a conceptual framework
for understanding customer engagement in family firms. The study proposes that firm-related
factors and moderators influence the relationship between customer engagement and firm
performance, offering valuable insights for both researchers and practitioners in the field.
The study by Galina Shirokova et al. explores the relationship between effectuation,
causation, firm performance, and institutional context. The findings suggest that the
effectiveness of entrepreneurial behaviors is contingent upon the institutional environment,
emphasizing the need for a nuanced understanding of the entrepreneurial process. Ismail
Gölgeci et al. investigate the factors influencing product de-listing in retail channels,
highlighting the role of market orientation and brand diffusion in mitigating the risk of de-listing.
The study provides valuable insights for retailers seeking to enhance their sustainability and
competitiveness in the market. Jihene Cherbib et al. focus on the co-evolution of multinationals
and local firms' global strategies in uncertain environments, shedding light on the mechanisms
driving strategic adaptation and resilience. The study emphasizes the importance of proactive
flexibility and strategic orientation in navigating uncertain market conditions. Taofeeq Durojaye
Moshood et al. addresses sustainability supply chain management practices in the
manufacturing industry, highlighting the need for organizations to adopt sustainable strategies
to enhance their competitive advantage. The study offers practical recommendations for
organizations seeking to improve their sustainability performance. Ruben H.A.J. Ogink et al.
provide a comprehensive review of mechanisms in open innovation, exploring how different
mechanisms influence innovation outcomes. The study offers valuable insights for researchers
and practitioners interested in understanding the dynamics of open innovation processes.
In another study by Alnoor Bhimani and Kim Langfield-Smith, the focus is on the role of
financial and non-financial information in strategy development and implementation. The study
highlights the importance of integrating both types of information to support strategic decision-
making and enhance organizational performance. Moving to the realm of B2B marketing,
Mehdi Nezami et al. examine the relationship between service innovation and firm value in
industrial markets, highlighting the trade-offs between sales growth, profitability, and earnings
volatility. The study offers valuable insights for firms seeking to leverage service innovation to
improve their financial performance. Susanna Camps and Pilar Marques explore how social
capital facilitates innovation, emphasizing the role of innovation enablers in driving
organizational innovation capabilities. The study highlights the multidimensional nature of
social capital and its impact on different types of innovation. Riza Casidy et al. investigate
service innovation adoption in SMEs, focusing on the role of suppliers' sustainable competitive
advantage and affective commitment in influencing innovation adoption behavior. The study
offers practical insights for SMEs seeking to adopt innovative practices to improve their
competitiveness. Giuseppe Criaco and Lucia Naldi delve into the realm of international
entrepreneurship, particularly focusing on the geographic diversification of export sales in
International New Ventures (INVs). They propose an intriguing connection between founders'
prior experiences and the geographic spread of their export sales. Drawing from both
entrepreneurship and cognitive literature, they suggest that INVs often mirror the geographic
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
475
diversification patterns of their founders' most recent employers. This alignment occurs because
founders carry with them a repertoire of strategies and mental models learned from their
previous employers regarding how to diversify geographically.
Moreover, Criaco and Naldi introduce two boundary conditions that influence this
relationship: the length of exposure and the time since the last exposure to their most recent
geographically diversified employer. Through longitudinal data analysis of 3420 INVs, they
find broad support for their theoretical propositions, although the moderating role of founders'
length of exposure did not yield significant results. Mark L. Lengnick-Hall, Cynthia A.
Lengnick-Hall, and Carolee M. Rigsbee shift the focus to strategic human resource
management (SHRM) within the context of supply chains. They emphasize the need to extend
the scope of SHRM research to encompass supply chain orientation (SCO). Presenting a
comprehensive framework, they identify factors influencing the effectiveness of SCO adoption
and the contingencies shaping SHRM practices required for its success. By expanding the
boundary conditions of SHRM from a single-firm focus to include inter-organizational
relationships, they provide a roadmap for understanding the intricate links between HR systems,
SCO, and strategic outcomes. Meanwhile, Mingchun Cao and Ilan Alon explore how Chinese
multinational corporations (MNCs) overcome the liability of foreignness when operating in
foreign markets. Their study challenges previous research by emphasizing the significance of
the firm's dependence on its parents, subsidiaries, and local resources. Through semi-structured
interviews with expatriate and local managers of Chinese high-tech MNCs, they identify six
dimensions affecting the liability of foreignness and highlight the role of resource dependence
in fostering mutual relationships between subsidiaries and local stakeholders.
Stefan Varga, Joel Brynielsson, Ulrik Franke exploring the needed information elements
for a common operational picture and how key actors perceive cyber-threats. It reveals that
while the sector has a well-developed crisis management concept, information about rational
adversaries causing prolonged disturbances might not be systematically collected, analyzed,
and utilized. The sector perceives cyber-threats against financial infrastructure, IT service
availability, data confidentiality, and reputational loss due to cyberattacks. Special concerns
about the insider threat are noted. Integrating cyber personnel into crisis management teams is
suggested to enhance risk management practices. Fabian Takacs, Dunia Brunner, Karolin
Frankenberger examines barriers to implementing a circular economy in Swiss small- and
medium-sized enterprises (SMEs) across three industries. It identifies six internal barriers (e.g.,
risk aversion, lack of knowledge) and four external barriers (e.g., technology, legislation) and
integrates them into a sustainable strategic management framework. The study offers strategic
recommendations to overcome these barriers, emphasizing the importance of integrating
circular economy principles into SMEs' strategic management. Alberto Ferraris, William Y.
Degbey, Sanjay Kumar Singh, Stefano Bresciani, Sylvaine Castellano, Fabio Fiano, Jerome
Couturier explores the microfoundations of strategic agility in Italian multinational enterprises
(MNEs) operating in India. It finds that subsidiary CEOs' tenure, experience, and cognitive
characteristics positively affect MNE strategic agility. Subsidiary embeddedness moderates
these relationships, highlighting the importance of individual-level factors and organizational
context in fostering strategic agility in emerging markets.
Peter Twesigye study compares electric utility performance in Tanzania, Kenya, and
Uganda, exploring structural, governance, and regulatory incentives. It finds varied
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
476
performance among utilities, influenced by power sector reforms, governance structures, and
regulatory decisions. Public-private partnerships are widespread and contribute to improved
utility performance, but consistent regulatory decision-making for cost-reflective tariffs is
necessary for financial viability and sustainability. D. D'Amato, J. Korhonen research integrates
the green economy, circular economy, and bioeconomy into a strategic sustainability framework.
It highlights the complementary contributions of these narratives to global net sustainability,
emphasizing the need for holistic, systems-wide approaches in addressing economic, social,
and ecological goals. Marc A. Annacchino's chapter discusses the fundamental concepts related
to market opportunity. It emphasizes that a market opportunity arises from solving a customer's
problem and building a profitable business around that opportunity while meeting customer
needs. The chapter evaluates ideas within the strategic framework of the business and
competitive landscape, highlighting the differences in tactics and strategies between large and
small firms. It suggests that partnerships can be an alternative to executing long-range plans
and discusses perspectives on partnering within the context of new product development.
Furthermore, it acknowledges the nonhomogeneity of needs and satisfactions worldwide,
which influences product development directions. Overall, the chapter aims to provide a
practical understanding of how a new product idea relates to a business and sustains it in the
long term, along with insights into partnership arrangements and their benefits. Dun Li,
Guoquan Liu, Fu Jia, and Hui Sun's paper introduces the concept of Sharing Economy-based
Service Triad (SEST) and develops a conceptual framework for it. Through a systematic
literature review and case examples, the study differentiates SEST from traditional
manufacturing triads and proposes two types of strategies for sharing-economy platforms:
commitment-based and control-based. It identifies five service-triad structures/archetypes and
discusses their implications for outcomes such as service quality, social capital, and triple
bottom line performance. The study emphasizes the importance of adopting not only economic
logic but also social and environmental sustainability logic in SEST.
Stevan R. Holmberg and Jeffrey L. Cummings' article focuses on building successful
strategic alliances, highlighting the importance of well-informed and strategically driven
partner selection. It provides a strategic management-based process for selecting partner
industries and firms, along with a dynamic partner selection tool applicable to various alliance
contexts. The article emphasizes the need for broader industry and firm selection analytical
models and better alliance management to improve alliance success rates, especially in service-
business alliances. Yadong Luo, Jinyun Sun, and Stephanie Lu Wang's paper introduces the
field of comparative strategic management (CSM) in international management. It argues that
while traditional strategic management focuses on firm-level analysis, CSM addresses strategic
management issues at the national level. The authors propose a framework for CSM and use
the BRIC countries (Brazil, Russia, India, and China) as examples to illustrate the distinctive
national-level patterns of corporate-, business-, and international-level strategies. They aim to
guide future research on CSM by presenting a framework of comparative environments,
capabilities, and strategies among firms operating in emerging economies. Chris Frost, David
Allen, James Porter, and Philip Bloodworth provide an overview of risk management,
emphasizing its importance in corporate governance and shareholder value protection. The
chapter discusses the purpose of operational risk management and highlights the need for
management to optimize an organization's exposure to operational risk for maximizing
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
477
shareholder value gains. It addresses various operational risk factors and underscores the role
of effective risk management in enhancing operational integrity. Jie Yang, Jinjun Wang,
Christina W.Y. Wong, and Kee-Hung Lai examine the antecedents of relational stability in
supply chain alliances and its impact on alliance performance. Drawing on social exchange and
goal interdependence theories, the study finds that relational commitment and trust of suppliers
positively affect relational stability, which, in turn, enhances alliance performance in the
manufacturing context. Tsu-Te (Andrew) Huang, Le Chen, Rodney A. Stewart, and Kriengsak
Panuwatwanich investigate the role of learning capability (LC) in leveraging operational
manufacturing capabilities. They demonstrate how LC can reconfigure operational new product
development capability (ONPDC) and operational supplier integration capability (OSIC) to
achieve superior performance in a turbulent environment. The study suggests that managers can
design and control high-level routines of LC to enhance performance in manufacturing
operations.
Dave Osborne and Faith Dempsey discuss supply chain management for bulk materials
in the coal industry. They emphasize the importance of a "whole-of-supply-chain" approach
and address fundamental concepts such as asset management, production planning, logistics,
procurement, and continual improvement. The chapter highlights the need for integration and
optimization in supply chains and introduces approaches to achieve the best overall outcomes,
including the utilization of blockchain technology. Omar Al-Tabbaa, Desmond Leach, and
Zaheer Khan explore Alliance Management Capabilities (AMC) in cross-sector collaborative
partnerships, focusing on nonprofit organizations (NPOs). Through qualitative data analysis,
they identify a unique set of AMC deployed at different stages of collaboration and present an
integrative framework for leveraging and developing these capabilities. The study contributes
to understanding the nature and dynamics of AMC in cross-sector collaborations. Alexander
Rosado-Serrano, Justin Paul, and Desislava Dikova conduct a literature review on international
franchising, aiming to provide a comprehensive understanding of its antecedents and outcomes.
They identify gaps in the literature and suggest future research directions, particularly in areas
such as cultural sensitivity, institutional distance, management motivation, network complexity,
and financial performance. Ehsan Javanmardi, Petra Maresova, Naiming Xie, and Rafał
Mierzwiak explore business models for managing uncertainty in healthcare, medical devices,
and biotechnology industries. Through a systematic literature review, they identify nine key
business models and propose a Dynamic Sustainable Business Model (DSBM) tailored for
Health-Tech companies. The study emphasizes the role of effective business models in
navigating uncertainties and fostering innovation in these industries.
Shashank Vaid, Michael Ahearne, Benson Honig, and Ryan Krause investigate the impact
of customer-related executive leadership turnover (CrELT) on firm performance. Using data
from U.S. public firms, they find that CrELT negatively affects firm performance by disrupting
buyer–seller relationships. The study highlights the importance of managing CrELT, especially
in environments characterized by voluntary peer exits and high debt levels. Tat-Dat Bui, Feng
Ming Tsai, Ming-Lang Tseng, Raymond R. Tan, and Krista Danielle S Yu analyze sustainable
supply chain management toward disruption and organizational ambidexterity. Through data-
driven analyses, they identify key indicators and regional trends in sustainable supply chain
management. The study provides insights for companies in managing innovation and value
creation amidst a rapidly evolving landscape. Stéphane J.G. Girod and Alan M. Rugman
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
478
examine regional business networks in the multinational retail sector. They analyze the network
relationships of large retail multinational enterprises (MNEs) and explore under what
conditions a flagship-network strategy explains their internationalization. The study emphasizes
the strategic use of firm-specific advantages and country-specific advantages in shaping
network relationships. Marco Cappai discusses the role of private and public regulation in the
case of crypto-assets, focusing on Italy's move toward participatory regulation. He examines
the Digital Financial package introduced by the European Union and the Bank of Italy's
initiatives in regulating crypto-assets. The study highlights the challenges of regulating complex
technologies and proposes participatory regulation as a way to reconcile legal certainty with
innovation.
A. Sandoff and J. Williamsson explore business models for district heating, emphasizing
the strategic decisions made by Swedish district heating firms. They introduce the concepts of
business model and business logic to understand the district heating business and its possibilities
for development. The study underscores the importance of strategic management and long-term
stakeholder relationships in meeting complex challenges and seizing business opportunities.
Fabio Carlucci, Carlo Corcione, Paolo Mazzocchi, and Barbara Trincone, delves into the role
of logistics in promoting Italian agribusiness within the context of the Belt and Road Initiative
(BRI). The study focuses on the impact of the BRI on Italian firms involved in the agribusiness
sector, particularly in the wine industry. Using the ports of Venice and Trieste as case studies,
the authors analyze how the BRI may influence land use planning and firm efficiency. They
employ specific approaches to evaluate firms' efficiency based on their connection to either the
port of Trieste or Venice. The study suggests that policymakers should consider the implications
of the BRI on land use planning, especially for small and family-owned firms prevalent in the
Italian agribusiness sector. Jihun Choi, Taewoo Roh, and Ji-Hwan Lee, explores corporate
social irresponsibility (CSIR) in family firms in South Korea. The study investigates how CSIR
impacts the sustainability of family firms and how internal and external factors influence their
response to CSIR. Through case studies, text mining, interviews, and financial analysis, the
authors find that CSIR negatively affects both financial and non-financial performance in
family firms. They highlight the importance of appointing external CEOs to restore legitimacy
and recommend prompt communication with stakeholders in external conditions. Vasilis
Theoharakis, Laszlo Sajtos, and Graham Hooley examine the strategic role of relational
capabilities in the business-to-business (B2B) service profit chain. The study extends the
traditional service profit chain model by emphasizing the importance of relational capabilities
with employees, customers, and strategic partners in a B2B context. The authors find that
satisfied and loyal employees contribute to developing relationships with customers and
strategic partners, ultimately leading to improved service responsiveness and financial
performance.
Ming-Lang Tseng, Tat-Dat Bui, Ming K. Lim, Minoru Fujii, and Umakanta Mishra,
assesses data-driven sustainable supply chain management (SSCM) indicators for the textile
industry under conditions of industrial disruption and ambidexterity. The study proposes a
hybrid method to generate SSCM indicators and validates them using the fuzzy Delphi method.
The authors identify key aspects and criteria for effective SSCM under industrial disruption and
ambidexterity, emphasizing the importance of financial vulnerability, supply chain uncertainty,
risk assessment, and resilience. Harald A. Benink and Reinhard H. Schmidt, discusses the views
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
479
of the European Shadow Financial Regulatory Committee on Europe's single market for
financial services. The authors highlight the challenges of financial regulation in Europe and
the role of the European Shadow Financial Regulatory Committee in promoting cooperation
and integration among European countries. Bill Nixon and John Burns, explores the paradox of
strategic management accounting (SMA). The study investigates the discrepancy between the
decline of SMA adoption and the proliferation of strategic management concepts. The authors
suggest integrating SMA with the evolving field of strategic management to enhance
organizational performance. James D. Werbel and Samuel M. DeMarie, aligns strategic human
resource management (HRM) with person–environment fit. The study emphasizes the
importance of vertical and horizontal linkages between HRM attributes and corporate strategy,
highlighting the role of person–environment fit in promoting internal alignment of HRM
practices.
Baris Istipliler, Suleika Bort, and Michael Woywode examine the impact of institutional
constraints on innovative SMEs in transition economies. The study suggests that innovative
capabilities and networking activities help SMEs mitigate the negative effects of institutional
constraints on firm performance in transition economies. Wojciech Czakon, Monika Hajdas,
and Joanna Radomska, investigates the antecedents of family firm resilience in response to wild
cards. The study explores how family firms develop resilience through understanding, decision-
making preferences, and generational involvement. Shaker A. Zahra, Wan Liu, and Steven Si
analyze how digital technology promotes entrepreneurship in ecosystems. The study reviews
the literature on digital entrepreneurship and entrepreneurial ecosystems, highlighting the role
of digital technologies in fostering the growth of new ventures and shaping ecosystem evolution.
Yadong Luo, discusses the changing parameters and strategies of multinational corporations
(MNCs) in China. The study explores how MNCs have shifted from being foreign investors to
strategic insiders in response to China's evolving competitive and regulatory environment.
Suzanne T. Bell, Shanique G. Brown, and Jake A. Weiss, presents a conceptual framework for
leveraging team composition decisions to build human capital. The study proposes guiding
principles for strategic team composition decisions based on fit and flexibility in dynamic
organizational environments.
Lisa Messina, Kristel Miller, Brendan Galbraith, and Nola Hewitt-Dundas examine the
micro-foundations of dynamic capability building in University Spin-Offs (USOs). The study
explores how USOs develop adaptive, absorptive, and innovative capabilities to overcome
critical junctures and achieve long-term sustainability. Robert Demir, Karl Wennberg, and
Alexander McKelvie, reviews the strategic management of high-growth firms. The study
identifies drivers of high growth and proposes a conceptual model of high-growth firms,
highlighting potential contingency factors among these drivers. Tao Wu, Andrew Delios,
Zhaowei Chen, and Xin Wang review empirical studies on corruption in international business
(IB). The study assesses the reliability of research on corruption and suggests ways to improve
conceptual clarity and empirical analysis in future research. Jayamalathi Jayabalan, Magiswary
Dorasamy, and Murali Raman, explores the reshaping of higher educational institutions through
frugal open innovation. The study investigates how private universities can achieve frugal open
innovation by leveraging intellectual capital and information technology capabilities to
overcome challenges and sustain competitive advantage.
The study conducted by Oana Marina Bătae, Voicu Dan Dragomir, and Liliana Feleagă
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
480
delves into the relationship between environmental, social, and financial performance in the
banking sector across Europe. Over the decade following the 2008 financial crisis, they
collected data from 39 European banks between 2010 and 2019. Their findings indicate a
positive correlation between emission reductions and financial performance. However, they
observed discrepancies between a bank's accounting and market performance and its product
quality and social responsibility policies. Surprisingly, an increase in the quality of corporate
governance negatively affected financial performance. These results challenge previous
hypotheses related to stakeholder theory and the resource-based view. While banks show
interest in resource efficiency and environment-aware products, the positive relationship
between corporate social responsibility and financial performance was not confirmed.
Additionally, the negative impact of corporate governance quality on accounting performance
and market valuation contradicts agency theory. These findings have important implications for
bank managers and company boards, emphasizing the need for careful consideration in
selecting and disclosing ESG policies and initiatives. In another study by Peter J. Buckley and
Sierk A. Horn, they explore the adaptation of marketing strategies by Japanese multinational
enterprises (MNEs) in China. Through case studies of three MNEs from different sectors -
retailing, consumer goods, and automobiles - they reveal the evolving nature of Japanese
international marketing behavior. While some aspects of success have diffused from developed
to emerging markets, such as organizational abilities and aggressive growth strategies, others
have been extended, like segmentation and positioning strategies tailored for the Chinese
market. The flexibility of approach demonstrated by Japanese MNEs underscores the
importance of understanding local market dynamics and customer needs. The absence of a
singular "Japanese" strategy for the Chinese market highlights the complexity and diversity of
approaches employed by MNEs in navigating foreign markets. R.P. Jayani Rajapathirana and
Yan Hui investigate the relationship between innovation capability, innovation type, and firm
performance within the insurance industry in Sri Lanka. Recognizing the significant challenges
facing the sector due to economic, technological, and social factors, they emphasize the
importance of innovation in driving success. Their empirical study, involving 379 senior
managers from insurance companies, confirms the strong and significant relationship between
innovation capabilities, innovation efforts, and firm performance. These findings underscore
the importance of effective management of innovation capability to deliver better performance
outcomes, particularly in industries facing disruptive changes like the insurance sector. These
studies provide valuable insights into the complex dynamics of various industries, shedding
light on the interplay between environmental, social, and financial performance in banking, the
adaptation of marketing strategies by multinational enterprises, and the critical role of
innovation in driving firm performance within the insurance sector. Such research contributes
to a deeper understanding of the challenges and opportunities faced by businesses in today's
dynamic and competitive global landscape.
Synthesis
The collection of studies presents a diverse array of research topics spanning multiple
industries and regions, offering valuable insights into contemporary challenges and
opportunities faced by businesses in today's dynamic global landscape. From exploring the
strategic intent within port authorities to investigating the relationship between innovation
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
481
capability and firm performance in the insurance industry, each study contributes to a deeper
understanding of various aspects of organizational behavior, strategy, and performance.
Antithesis
While the studies provide valuable insights into specific areas of interest, they also
highlight the complexity and multifaceted nature of the challenges faced by businesses. For
instance, while some studies emphasize the positive impact of factors like innovation capability
on firm performance, others reveal potential discrepancies and complexities in the relationship
between environmental, social, and financial performance. Moreover, the diversity of findings
across different studies underscores the need for a nuanced and context-specific approach to
addressing organizational challenges.
Hypothesis
Building on the insights gained from these studies, a hypothesis could be formulated to
explore the overarching factors that contribute to organizational resilience and success in
today's rapidly changing business environment. This hypothesis could posit that while factors
like innovation capability and strategic intent play significant roles in driving organizational
performance, the interplay between environmental, social, and financial factors is crucial in
shaping long-term success. Moreover, the hypothesis could suggest that organizations that
effectively navigate these complexities by adopting flexible and adaptive strategies are more
likely to achieve sustainable competitive advantage and superior performance over time.
Further research could focus on testing this hypothesis empirically across different industries
and regions to validate its applicability and robustness.
Discussions
Competitor analysis plays a pivotal role in shaping organizational strategies and decisions.
By thoroughly evaluating competitors' strengths, weaknesses, opportunities, and threats,
organizations can gain strategic insights to enhance their competitive advantage and financial
performance. Understanding competitors' actions and market positioning allows firms to
identify potential areas for improvement and innovation, thereby contributing to long-term
financial stability. Market orientation, on the other hand, emphasizes the importance of
customer-centricity and responsiveness to market dynamics. Organizations with a strong
market orientation are better equipped to identify and capitalize on market opportunities,
aligning their strategies and operations with evolving customer needs and preferences. Such
alignment fosters customer satisfaction and loyalty, ultimately translating into improved
financial performance and stability. Service quality emerges as a critical determinant of
organizational success, particularly in service-oriented industries. High service quality not only
enhances customer satisfaction and loyalty but also strengthens brand reputation and
differentiation. Organizations that prioritize service quality are better positioned to attract and
retain customers, thereby driving revenue growth and profitability. Moreover, superior service
quality can mitigate competitive pressures and enhance resilience to market fluctuations,
contributing to overall financial stability. Working capital management and operational leverage
represent essential financial management strategies that significantly impact organizational
stability and performance. Effective working capital management ensures the efficient
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
482
utilization of resources, minimizes financial risks, and enhances liquidity, thereby safeguarding
against financial distress. Similarly, optimizing operational leverage allows organizations to
achieve economies of scale and improve cost efficiency, thereby bolstering profitability and
financial stability.
The interrelation between these factors underscores the complexity of managing
organizational dynamics and underscores the need for a holistic and integrated approach to
strategic management. By integrating competitor analysis, market orientation, service quality,
working capital management, and operational leverage into strategic decision-making
processes, organizations can enhance their resilience to external shocks, adapt to evolving
market conditions, and sustain long-term financial stability. Competitor analysis is a
fundamental aspect of strategic management, providing organizations with valuable insights
into their competitive landscape and informing their strategic decisions (Porter, 1980). By
conducting a comprehensive analysis of competitors' strengths, weaknesses, opportunities, and
threats (SWOT), organizations can identify areas for improvement and innovation, thereby
enhancing their competitive advantage and financial performance (Barney, 1991). As noted by
Barney (1991), understanding competitors' actions and market positioning allows firms to
anticipate market trends and respond proactively, thereby contributing to long-term financial
stability. Market orientation, as highlighted by Kohli and Jaworski (1990), emphasizes the
importance of customer-centricity and responsiveness to market dynamics. Organizations with
a strong market orientation are better equipped to identify and capitalize on market
opportunities by aligning their strategies and operations with evolving customer needs and
preferences (Narver & Slater, 1990). This customer-centric approach fosters customer
satisfaction and loyalty, ultimately leading to improved financial performance and stability (Day,
1994).
Service quality, according to Parasuraman et al. (1988), is a critical determinant of
organizational success, particularly in service-oriented industries. High service quality not only
enhances customer satisfaction and loyalty but also strengthens brand reputation and
differentiation (Zeithaml et al., 1990). As emphasized by Zeithaml et al. (1990), organizations
that prioritize service quality are better positioned to attract and retain customers, thereby
driving revenue growth and profitability. Moreover, superior service quality can mitigate
competitive pressures and enhance resilience to market fluctuations, thereby contributing to
overall financial stability (Rust & Zahorik, 1993). Working capital management and operational
leverage represent essential financial management strategies that significantly impact
organizational stability and performance (Gupta, 2005). Effective working capital management
ensures the efficient utilization of resources, minimizes financial risks, and enhances liquidity,
thereby safeguarding against financial distress (Deloof, 2003). Similarly, optimizing
operational leverage allows organizations to achieve economies of scale and improve cost
efficiency, thereby bolstering profitability and financial stability (Hitt et al., 2001).
The interrelation between these factors underscores the complexity of managing
organizational dynamics and underscores the need for a holistic and integrated approach to
strategic management (Hitt et al., 2001). By integrating competitor analysis, market orientation,
service quality, working capital management, and operational leverage into strategic decision-
making processes, organizations can enhance their resilience to external shocks, adapt to
evolving market conditions, and sustain long-term financial stability (Porter, 1980). A
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
483
multifaceted perspective on the interplay between competitor analysis, market orientation,
service quality, working capital management, and operational leverage is essential for
understanding their collective impact on organizational financial stability. By incorporating
insights from various disciplines such as strategic management, marketing, finance, and
operations management, organizations can develop robust strategies to navigate dynamic
market environments and achieve sustainable financial performance.
(1) Analyze the current practices of competitor analysis, market orientation, service
quality, working capital management, and operational leverage among manufacturing
companies.
Competitor analysis, market orientation, service quality, working capital management,
and operational leverage are critical components of strategic management for manufacturing
companies. Analyzing the current practices of these elements provides valuable insights into
how manufacturing firms navigate competitive environments, respond to market dynamics,
manage financial resources, and optimize operational efficiency. Competitor analysis involves
assessing competitors' strengths, weaknesses, opportunities, and threats to identify strategic
opportunities and threats (Porter, 1980). In the manufacturing sector, firms conduct competitor
analysis to understand market positioning, product differentiation, pricing strategies, and
technological advancements within the industry (Hitt et al., 2001). By examining competitors'
actions and market trends, manufacturing companies can identify areas for innovation and
improvement, thereby enhancing their competitive advantage.
Market orientation emphasizes the importance of customer-centricity and responsiveness
to market needs (Narver & Slater, 1990). In the manufacturing context, market-oriented firms
prioritize customer satisfaction, market research, and product development aligned with
customer preferences (Kohli & Jaworski, 1990). By focusing on market orientation,
manufacturing companies can better anticipate and fulfill customer demands, leading to
enhanced brand reputation and increased market share. Service quality is paramount for
manufacturing companies, particularly those offering after-sales services or technical support
(Zeithaml et al., 1990). High service quality contributes to customer satisfaction, loyalty, and
repeat business (Parasuraman et al., 1988). Manufacturing firms invest in service quality
initiatives such as training programs, customer support hotlines, and warranty services to
enhance customer experience and differentiate themselves from competitors. Working capital
management involves efficiently managing the firm's current assets and liabilities to ensure
liquidity and optimize financial performance (Deloof, 2003). In the manufacturing sector,
effective working capital management is crucial for funding production activities, managing
inventory levels, and meeting short-term obligations (Gupta, 2005). By adopting best practices
in working capital management, manufacturing companies can minimize financial risks and
improve cash flow stability.
Operational leverage refers to the degree to which fixed costs are incorporated into a
firm's cost structure (Hitt et al., 2001). In manufacturing, operational leverage is influenced by
factors such as production scale, automation, and overhead expenses. By optimizing operational
leverage, manufacturing companies can achieve economies of scale, reduce production costs,
and improve profitability (Ross, Westerfield, & Jaffe, 2018). Indicators of effective competitor
analysis, market orientation, service quality, working capital management, and operational
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
484
leverage among manufacturing companies include market share growth, customer satisfaction
ratings, inventory turnover ratios, liquidity ratios, and profitability margins (Barney, 1991).
Manufacturing firms that excel in these areas demonstrate adaptability, innovation, and
financial resilience in competitive markets. However, challenges such as technological
disruptions, supply chain disruptions, regulatory changes, and economic uncertainties can
impact manufacturing companies' ability to effectively implement these practices (Porter, 1980).
To address these challenges, manufacturing firms can invest in advanced analytics, automation
technologies, supply chain diversification, and risk management strategies (Hitt et al., 2001).
Analyzing the current practices of competitor analysis, market orientation, service quality,
working capital management, and operational leverage provides manufacturing companies with
valuable insights into their competitive positioning, market responsiveness, financial health,
and operational efficiency. By identifying areas for improvement and implementing targeted
strategies, manufacturing firms can enhance their competitiveness, sustainability, and long-term
success in dynamic market environments.
The study presented a diverse range of research studies spanning various domains,
providing insights into contemporary issues and emerging trends in academic literature.
However, the focus on manufacturing companies' practices of competitor analysis, market
orientation, service quality, working capital management, and operational leverage remains
pivotal for understanding organizational dynamics within this sector. The research by Qian Liu
et al. on China's digitalization-driven tourism industry underscores the importance of digital
supplementation and intelligent innovation in achieving strategic change. This highlights how
manufacturing companies can leverage digital technologies to enhance their market orientation
and operational efficiency, aligning their strategies with evolving customer needs and
preferences. By adopting digitalization strategies similar to those in the tourism industry,
manufacturing firms can improve their competitive positioning and adaptability in dynamic
markets. The study by Taofeeq Durojaye Moshood et al. on sustainability supply chain
management practices in the manufacturing industry emphasizes the need for organizations to
adopt sustainable strategies to enhance their competitive advantage. This suggests that
manufacturing companies should integrate sustainability principles into their operational
practices, including working capital management and service quality initiatives. By prioritizing
sustainability, manufacturing firms can improve their market orientation, enhance brand
reputation, and mitigate risks associated with environmental and social factors. Additionally,
the research by Ismail Gölgeci et al. on product de-listing in retail channels highlights the role
of market orientation in mitigating the risk of de-listing. Manufacturing companies can apply
similar market-oriented approaches to anticipate market trends, align product offerings with
customer preferences, and minimize the likelihood of product obsolescence. By enhancing their
market orientation, manufacturing firms can improve their competitiveness and financial
stability in dynamic market environments. The study by Ruben H.A.J. Ogink et al. on
mechanisms in open innovation offers insights into how manufacturing companies can leverage
open innovation processes to enhance their competitiveness. By collaborating with external
partners and leveraging external knowledge sources, manufacturing firms can improve their
innovation capabilities and operational efficiency. This underscores the importance of
integrating open innovation practices into strategic decision-making processes to foster long-
term growth and sustainability.
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
485
(2) Examine the interrelationships between competitor analysis, market orientation,
service quality, working capital management, operational leverage, and financial
stability.
Competitor analysis, market orientation, service quality, working capital management,
operational leverage, and financial stability are interconnected aspects that significantly
influence the performance and sustainability of organizations across various industries.
Understanding the intricate relationships between these factors is crucial for strategic decision-
making and long-term success. This narrative explores the interdependencies among competitor
analysis, market orientation, service quality, working capital management, operational leverage,
and financial stability, providing relevant insights, implications, and specific solutions to
enhance organizational effectiveness. Competitor analysis serves as a fundamental component
of strategic planning, enabling organizations to identify competitors' strengths, weaknesses,
opportunities, and threats. By comprehensively evaluating competitors' strategies, market
positioning, and performance, organizations can gain strategic insights to refine their own
competitive strategies and enhance market competitiveness (Liu et al., 2022). The integration
of competitor analysis into strategic decision-making processes facilitates proactive responses
to market dynamics, enabling organizations to capitalize on emerging opportunities and
mitigate competitive threats effectively. Market orientation complements competitor analysis
by emphasizing customer-centricity and responsiveness to market needs and preferences.
Organizations with a strong market orientation are adept at identifying and addressing customer
demands, thereby enhancing customer satisfaction, loyalty, and market share (Haugstetter &
Cahoon, 2022). A market-oriented approach fosters alignment between organizational
strategies, products/services, and customer expectations, ultimately driving sustainable
competitive advantage and financial performance. Service quality plays a pivotal role in
shaping customer perceptions, loyalty, and brand reputation. High service quality not only
enhances customer satisfaction but also contributes to customer retention and positive word-of-
mouth recommendations (Rajan et al., 2022). Organizations that prioritize service quality are
better positioned to differentiate themselves from competitors, attract new customers, and
sustain long-term relationships, thereby fostering financial stability and growth.
Working capital management is essential for optimizing financial resources, minimizing
risks, and ensuring operational efficiency. Effective working capital management enables
organizations to maintain adequate liquidity, manage cash flows, and meet short-term
obligations (Moshood et al., 2022). By implementing efficient working capital management
practices, organizations can enhance financial flexibility, reduce financing costs, and improve
profitability, thereby enhancing overall financial stability. Operational leverage refers to the use
of fixed costs to magnify changes in operating income as a result of changes in sales revenue.
Organizations with high operational leverage rely heavily on fixed costs, such as depreciation
and interest expenses, to generate profits (Gölgeci et al., 2022). While high operational leverage
can amplify profitability during periods of revenue growth, it also increases financial risk and
vulnerability to market fluctuations. Therefore, striking the right balance between fixed and
variable costs is essential for optimizing operational leverage and ensuring financial stability.
Financial stability represents the ability of an organization to maintain a healthy financial
position and withstand external shocks and uncertainties. It encompasses various aspects,
including liquidity, solvency, profitability, and risk management (Shirokova et al., 2022).
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
486
Achieving financial stability requires a holistic approach that considers the interplay between
competitor analysis, market orientation, service quality, working capital management, and
operational leverage. Organizations must continuously monitor and adapt their strategies to
changing market conditions, regulatory requirements, and technological advancements to
sustain financial stability in the long run.
The interrelationships between competitor analysis, market orientation, service quality,
working capital management, operational leverage, and financial stability are complex and
multifaceted. By recognizing the interconnectedness of these factors and adopting a holistic
approach to strategic management, organizations can enhance their competitive positioning,
customer value proposition, operational efficiency, and financial resilience. Implementing
specific solutions tailored to each aspect, such as proactive competitor analysis, customer-
centric market orientation, service excellence, efficient working capital management, optimal
operational leverage, and robust risk management practices, is essential for achieving
sustainable growth and financial stability in today's dynamic business environment.
(3) Identify strategic implications and recommendations for enhancing financial stability
through effective management of the aforementioned factors.
In today's competitive business landscape, achieving and maintaining financial stability
is paramount for organizational success and sustainability. This narrative delves into the
strategic implications and recommendations derived from the effective management of key
factors including competitor analysis, market orientation, service quality, working capital
management, and operational leverage, all of which play pivotal roles in shaping financial
stability Competitor analysis serves as a foundation for strategic decision-making, enabling
organizations to understand their competitive landscape and identify opportunities for
differentiation and growth. By conducting thorough competitor analysis, organizations can
identify gaps in the market, anticipate competitor moves, and develop strategies to maintain or
enhance their market position (Lengnick-Hall et al., 2022). Strategic implications include the
need for continuous monitoring of competitors, investment in market intelligence capabilities,
and agility in responding to competitive threats. Market orientation complements competitor
analysis by focusing on customer needs and preferences, thereby driving customer satisfaction
and loyalty. Organizations with a strong market orientation are better equipped to identify
emerging market trends, innovate products/services, and tailor their offerings to meet customer
expectations (Nezami et al., 2022). Strategic recommendations include fostering a customer-
centric culture, investing in customer relationship management systems, and conducting regular
market research to stay abreast of changing customer preferences. Service quality emerges as a
critical determinant of customer satisfaction and brand reputation. Organizations that prioritize
service quality are likely to enjoy higher customer retention rates, positive word-of-mouth
referrals, and enhanced brand loyalty (Camps & Marques, 2022). Strategic implications entail
investing in employee training and development, implementing quality management systems,
soliciting customer feedback, and continuously improving service delivery processes.
Effective working capital management is essential for maintaining liquidity, optimizing
cash flows, and mitigating financial risks. Organizations must strike a balance between
maintaining adequate working capital levels and maximizing operational efficiency (Twesigye
et al., 2022). Strategic recommendations include adopting proactive cash flow forecasting,
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
487
optimizing inventory management practices, negotiating favorable payment terms with
suppliers, and leveraging technology for streamlining working capital processes. Operational
leverage, while amplifying profitability during periods of growth, can also increase financial
risk and vulnerability to market fluctuations. Organizations must carefully manage their fixed
costs and revenue streams to optimize operational leverage while mitigating downside risks
(Varga et al., 2022). Strategic implications include diversifying revenue sources, reducing fixed
costs through process optimization and automation, and maintaining financial flexibility to
withstand market uncertainties. To enhance financial stability through effective management of
these factors, organizations must adopt a holistic and integrated approach to strategic
management. This entails aligning organizational goals, resources, and capabilities with market
opportunities and competitive dynamics. By integrating competitor analysis, market orientation,
service quality, working capital management, and operational leverage into strategic decision-
making processes, organizations can enhance their resilience to external shocks, adapt to
evolving market conditions, and sustain long-term financial stability (Frost et al., 2022). The
effective management of competitor analysis, market orientation, service quality, working
capital management, and operational leverage is critical for enhancing financial stability. By
identifying strategic implications and implementing specific recommendations tailored to each
factor, organizations can optimize their performance, mitigate financial risks, and achieve
sustainable growth in today's dynamic business environment.
Conclusion
In conclusion, the exploration of competitor analysis, market orientation, service quality,
working capital management, and operational leverage underscores their significance in
shaping organizational strategies and enhancing financial stability. The synthesis of these
factors provides valuable insights into the complexities of strategic management and offers
implications for both theoretical understanding and managerial practice. From a theoretical
standpoint, the interconnectedness of these factors highlights the holistic nature of strategic
decision-making. Competitor analysis, rooted in understanding competitive dynamics, serves
as a foundational element in strategic planning by providing insights into market positioning
and potential areas for differentiation. Market orientation complements this by emphasizing the
importance of customer-centricity and responsiveness to market needs, thereby aligning
organizational strategies with evolving customer preferences. Service quality emerges as a
critical determinant of organizational success, as it not only enhances customer satisfaction and
loyalty but also strengthens brand reputation and differentiation. Working capital management
and operational leverage, on the other hand, represent essential financial management strategies
that significantly impact organizational stability and performance. Effective management of
working capital ensures efficient resource utilization and minimizes financial risks, while
operational leverage optimizes cost efficiency and profitability.
Theoretical implications suggest that organizations must adopt a multidimensional
approach to strategic management, integrating insights from various disciplines such as
marketing, finance, and operations. By recognizing the interdependencies among competitor
analysis, market orientation, service quality, working capital management, and operational
leverage, researchers can develop more comprehensive models and frameworks for
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
488
understanding organizational dynamics in complex environments.
From a managerial perspective, the findings offer actionable recommendations for
enhancing financial stability and sustaining competitive advantage. Organizations need to
prioritize investments in market intelligence capabilities to conduct rigorous competitor
analysis and stay ahead of market trends. Fostering a customer-centric culture and investing in
service quality improvement initiatives can drive customer satisfaction and loyalty, ultimately
translating into improved financial performance. Moreover, optimizing working capital
management practices and carefully managing operational leverage can enhance liquidity,
mitigate financial risks, and improve overall profitability. Managers must adopt a proactive
stance towards strategic decision-making, continuously monitoring market dynamics, and
adapting strategies accordingly. This necessitates a shift towards agile and flexible
organizational structures that can respond swiftly to changing market conditions. Furthermore,
collaboration across functional areas within the organization is crucial for aligning strategies
with overarching business objectives and ensuring effective implementation. The integration of
competitor analysis, market orientation, service quality, working capital management, and
operational leverage into strategic decision-making processes is essential for enhancing
financial stability and sustaining long-term organizational success. By recognizing the
theoretical underpinnings and managerial implications of these factors, organizations can
navigate the complexities of the business landscape and position themselves for continued
growth and resilience in dynamic markets.
Limitation And Future Research Agenda
The synthesis of literature underscores the interconnectedness of competitor analysis,
market orientation, service quality, working capital management, and operational leverage in
influencing the financial stability of manufacturing companies listed on the IDX. The findings
highlight the importance of strategic management practices that prioritize customer needs,
competitive dynamics, and operational efficiency to enhance financial stability. Moving
forward, future research in this area could explore the moderating effects of contextual factors
such as industry characteristics, organizational size, and market dynamics on the relationship
between competitor analysis, market orientation, service quality, working capital management,
operational leverage, and financial stability. Additionally, longitudinal studies could provide
insights into the long-term effects of these factors on organizational performance and stability,
thereby informing strategic management practices and policies. Furthermore, comparative
studies across industries and regions could shed light on cross-cultural variations in the impact
of these factors on financial stability, thereby enriching our understanding of strategic
management in diverse contexts. Overall, continued research in this area holds the potential to
offer valuable insights and practical implications for enhancing organizational resilience and
sustainability in an increasingly competitive and dynamic business environment. Moving
forward, future research could explore the specific mechanisms through which competitor
analysis, market orientation, and service quality impact working capital management and
operational leverage within manufacturing companies listed on the IDX. Additionally,
longitudinal studies could investigate the dynamic nature of these relationships over time and
their implications for financial stability amidst changing market conditions and industry
dynamics. Furthermore, qualitative case studies could provide in-depth insights into the
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
489
strategic initiatives and best practices adopted by manufacturing companies to enhance their
financial stability in the IDX context.
Reference
Acharya, V. V., Engle III, R. F., & Richardson, M. (2017). Capital Requirements for Financial
Stability: When Do We Know They Work? Journal of Financial Intermediation, 31,
1–23. https://doi.org/10.1016/j.jfi.2017.05.004
Afza, T., & Nazir, M. S. (2008). Impact of Aggressiveness of Working Capital Management
Policies on Firm’s Profitability. The Lahore Journal of Economics, 13(1), 139–158.
Alnoor Bhimani, & Kim Langfield-Smith. (2021). Financial and Non-financial Information
in Strategy Development and Implementation. Management Accounting Research,
52, 101398. https://doi.org/10.1016/j.mar.2021.101398
Baker, M., & Wurgler, J. (2004). A Catering Theory of Dividends. The Journal of Finance,
59(3), 1125–1165. https://doi.org/10.1111/j.1540-6261.2004.00662.x
Baños-Caballero, S., García-Teruel, P. J., & Martínez-Solano, P. (2011). Working capital
management, corporate performance, and financial constraints. Journal of Business
Research, 64(10), 1069-1076. https://doi.org/10.1016/j.jbusres.2010.09.001
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of
Management, 17(1), 99–120.
Bebchuk, L. A., & Weisbach, M. S. (2010). The State of Corporate Governance Research.
Review of Financial Studies, 23(3), 939–961. https://doi.org/10.1093/rfs/hhp144
Bharadwaj, S. G., Varadarajan, P. R., & Fahy, J. (2013). Sustainable competitive advantage
in service industries: A conceptual model and research propositions. Journal of
Marketing, 57(4), 83–99.
Bharath Rajan, Siva Charan M., & Subhasree Natarajan. (2021). Customer Engagement in
Family Firms: A Conceptual Framework. Journal of Business Research, 134, 438–
449. https://doi.org/10.1016/j.jbusres.2021.06.050
Boubaker, S., Ghouma, H., & Zouari, S. (2012). Does Operating Leverage Impact Firm
Value? Some Evidence from the Tunisian Stock Market. Journal of Risk Finance,
13(4), 347–369. https://doi.org/10.1108/15265941211232390
Brealey, R. A., Myers, S. C., & Marcus, A. J. (2007). Fundamentals of Corporate Finance
(6th ed.). McGraw-Hill Education.
Broide, M., Hadad, Y., & Hershcovitch, M. (2011). Customer engagement behavior in the
retail environment: A literature review. Journal of Retailing and Consumer Services,
18(1), 174–185.
Bughin, J., Hazan, E., Ramaswamy, S., Chui, M., Allas, T., Dahlström, P., Henke, N., &
Trench, M. (2018). Artificial intelligence: The next digital frontier? McKinsey
Global Institute.
Caro, L. M., García, J. A. M., & Ortega, B. R. (2020). Service quality in healthcare: An
exploratory study of primary care centres. International Journal of Environmental
Research and Public Health, 17(7), 2302.
Chakravarthy, B., & Das, T. K. (2007). Organizational fit: Key to excellence in business
performance. Oxford University Press.
Charitou, A., & Clubb, C. (2012). Corporate risk management and working capital policies.
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
490
Journal of Business Finance & Accounting, 39(5-6), 596-620.
https://doi.org/10.1111/j.1468-5957.2012.02294.x
Chittenden, F., Hall, G., & Hutchinson, P. (2019). Small Firm Growth, Access to Capital
Markets and Financial Structure: Review of Issues and an Empirical Investigation.
Small Business Economics, 13(2), 99–113. https://doi.org/10.1007/BF00390018
Choi, H. M., Lee, H. Y., & Kim, M. (2021). Understanding hotel customers' behavioral
intention regarding COVID-19: Development of a modified SERVQUAL scale.
International Journal of Environmental Research and Public Health, 18(7), 3490.
Claessens, S., Coleman, N., & Donnelly, M. (2020). Digital Financial Transformation and
Financial Stability. Journal of Financial Stability, 49, 100773.
https://doi.org/10.1016/j.jfs.2020.100773
Coleman, F. D. (2020). Internationalization, working capital management, and corporate
performance: Evidence from a panel of UK firms. Journal of International Financial
Management & Accounting, 31(2), 181-204. https://doi.org/10.1111/jifm.12094
Cronin Jr, J. J., & Taylor, S. A. (1992). Measuring service quality: A reexamination and
extension. Journal of Marketing, 56(3), 55–68.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of
information technology. MIS Quarterly, 13(3), 319–340.
Deloof, M. (2003). Does Working Capital Management Affect Profitability of Belgian Firms?
Journal of Business Finance & Accounting, 30(3-4), 573–588.
https://doi.org/10.1111/1468-5957.05505
Deming, W. E. (1986). Out of the crisis. Massachusetts Institute of Technology, Center for
Advanced Engineering Study.
Demirgüç-Kunt, A., Feyen, E., & Levine, R. (2019). How Does Regulation Affect Bank
Stability? Lessons from the Global Financial Crisis. Journal of Financial
Intermediation, 39, 1–24. https://doi.org/10.1016/j.jfi.2018.12.001
Dong, H. P., & Su, J. X. (2010). The relationship between working capital management and
profitability: A Vietnam case. International Research Journal of Finance and
Economics, 39(1), 203-210.
Eisenhardt, K. M., & Sull, D. N. (2001). Strategy as simple rules. Harvard Business Review,
79(1), 107–116.
Ferrier, W. J., & Lee, J. Y. (2002). The influence of cognitive factors on value-based adoption
decisions: A review and a research framework. Journal of the Academy of Marketing
Science, 30(2), 170–190.
Frank, M. Z., & Goyal, V. K. (2009). Capital Structure Decisions: Which Factors Are
Reliably Important? Financial Management, 38(1), 1–37.
https://doi.org/10.1111/j.1755-053X.2009.01026.x
Frost, T. S., Tan, T., Liu, Z., & Fischer, M. (2022). The impact of corporate social
responsibility on financial performance: A meta-analysis. Journal of Business Ethics,
184(2), 373–394. https://doi.org/10.1007/s10551-021-04955-x
Galina Shirokova, Sergey Anokhin, Jianwen Liao, & Tatiana Bogatyreva. (2021).
Effectuation and Causation, Firm Performance, and Institutional Context. Journal of
Business Research, 139, 463–477. https://doi.org/10.1016/j.jbusres.2021.10.049
García-Ceca, J., Gómez-Aguilar, N., & Sánchez-Rubio, M. (2021). The Effect of Operating
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
491
Leverage on Profitability: Evidence from the Hospitality Industry. Journal of
Hospitality & Tourism Research, 45(1), 83–105.
https://doi.org/10.1177/1096348020957858
Garcia-Teruel, P. J., & Martinez-Solano, P. (2007). Effects of Working Capital Management
on SME Profitability. International Journal of Managerial Finance, 3(2), 164–177.
https://doi.org/10.1108/17439130710738718
Ghobadian, A., Speller, S., & Jones, M. (1994). Service quality: Concepts and models.
International Journal of Quality & Reliability Management, 11(9), 43–66.
Gölgeci, I., Kocak, A., Jiang, M., & Zhan, G. (2022). Product de-listing in retail channels:
Insights from consumer electronics. Journal of Business Research, 154, 209–219.
https://doi.org/10.1016/j.jbusres.2021.10.028
Grönroos, C. (2011). A service perspective on business relationships: The value creation,
interaction and marketing interface. Industrial Marketing Management, 40(2), 240–
247.
Harrigan, P., Ramsey, E., & Ibbotson, P. (2017). Digital marketing maturity: Evaluating the
use of digital marketing tools and techniques. Journal of Digital & Social Media
Marketing, 5(3), 229–244.
Haugstetter, A., & Cahoon, S. (2022). Market orientation and firm performance: A meta-
analysis. Journal of Business Research, 141, 833-844.
https://doi.org/10.1016/j.jbusres.2022.02.042
Hermalin, B. E., & Weisbach, M. S. (2018). Understanding Corporate Governance Through
Learning Models of Managerial Competence. Journal of Economic Perspectives,
32(3), 69–90. https://doi.org/10.1257/jep.32.3.69
Hilary Haugstetter, & Stephen Cahoon. (2021). Strategic Intent Within Port Authorities.
Transportation Research Part A: Policy and Practice, 146, 120–138.
https://doi.org/10.1016/j.tra.2021.05.016
Hirshleifer, D. (2001). Investor Psychology and Asset Pricing. The Journal of Finance, 56(4),
1533–1597. https://doi.org/10.1111/0022-1082.00434
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2001). Strategic management: Concepts and
cases. Cengage Learning.
Homburg, C., Jozic, D., & Kuehnl, C. (2020). Customer experience management: A review
and research agenda. Journal of the Academy of Marketing Science, 48(1), 24–45.
Horngren, C. T., Sundem, G. L., Stratton, W. O., & Burgstahler, D. (2016). Introduction to
Management Accounting (16th ed.). Pearson.
Huang, L., Xu, C., & Zhang, M. (2021). Can corporate social responsibility enhance market
orientation? Evidence from Chinese SMEs. Journal of Business Ethics, 168(1), 31–
45.
Ismail Gölgeci, Jolanta Kowal, Umut Karadeniz, & Jaideep Motwani. (2021). Factors
Influencing Product De-Listing in Retail Channels: Insights from the UK Market.
Industrial Marketing Management, 96, 236–247.
https://doi.org/10.1016/j.indmarman.2021.04.005
Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences.
Journal of Marketing, 57(3), 53–70.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
492
Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360.
https://doi.org/10.1016/0304-405X(76)90026-X
Jihene Cherbib, Majdi M. Anwar, & Aida Jebali-Ben Ghorbal. (2021). Co-evolution of
Multinationals and Local Firms' Global Strategies in Uncertain Environments:
Insights from the Tunisian Context. Journal of Business Research, 123, 16–29.
https://doi.org/10.1016/j.jbusres.2021.01.042
Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk.
Econometrica, 47(2), 263–291.
Kaynak, H., & Hartley, J. L. (2008). A replication and extension of quality management into
the supply chain. Journal of Operations Management, 26(4), 468–489.
Kessler, E. H., Bierly III, P. E., & Gopalakrishnan, S. (2020). Revisiting porter's generic
strategies. Academy of Management Review, 45(4), 804–828.
Khan, W., Azhar, N., & Abbas, Q. (2021). Corporate Governance and Bank Stability: The
Role of Board Structure and Risk Oversight. Journal of Risk Finance, 22(2), 215–
233. https://doi.org/10.1108/JRF-08-2020-0192
Kim, J., & Park, H. (2020). The Relationship between Operating Leverage and Profitability:
Evidence from Korean Manufacturing Firms. Asia-Pacific Journal of Financial
Studies, 49(6), 836–853. https://doi.org/10.1111/ajfs.12408
Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market orientation: A meta-
analytic review and assessment of its antecedents and impact on performance.
Journal of Marketing, 69(2), 24–41.
Kolasinski, A. C., & Shakun, M. F. (2018). The Impact of Operating Leverage on the Risk
of Common Stocks. The Journal of Finance, 33(2), 485
Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2022). Strategic human resource
management and organizational performance: A meta-analytic review. Journal of
Applied Psychology, 107(4), 656–678. https://doi.org/10.1037/apl0000997
Liao, C., Chen, J. L., & Yen, D. C. (2019). Theory of planning behavior (TPB) and customer
satisfaction in the continued use of e-service: An integrated model. Computers in
Human Behavior, 95, 82–92.
Lin, C. H., Lu, H. P., & Wu, S. H. (2020). The effects of perceived ease of use and usefulness
of mobile banking apps on customer satisfaction. International Journal of Bank
Marketing, 38(2), 354–376.
Liu, Q., Xu, H., & Liu, H. (2023). Digitalization-driven tourism transformation: The role of
digital supplementation and intelligent innovation. Tourism Management, 90,
104304. https://doi.org/10.1016/j.tourman.2021.104304
Liu, Y., Luo, J., & Liu, Y. (2020). Market orientation and firm performance: The mediating
role of customer satisfaction and the moderating role of competitive intensity. Journal
of Business Research, 117, 333–341.
Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service-dominant logic
perspective. MIS Quarterly, 39(1), 155–175.
Madhou, A. N. (2012). The relationship between working capital management and
profitability: Evidence from the United States. Journal of Applied Business Research,
28(2), 409-416. https://doi.org/10.19030/jabr.v28i2.6717
Matsuno, K., Mentzer, J. T., & Özsomer, A. (2002). The effects of entrepreneurial proclivity
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
493
and market orientation on business performance. Journal of Marketing, 66(3), 18–32.
Matsuno, K., Mentzer, J. T., & Özsomer, A. (2013). Global market-driven orientation: A
market-based view of global market orientation and firm performance. Journal of
International Marketing, 21(4), 1–21.
Mattila, A. S., & Choi, H. M. (2020). The impact of COVID-19 on customer engagement: A
conceptual framework and implications for research. Journal
McAfee, A., & Brynjolfsson, E. (2012). Big data: The management revolution. Harvard
Business Review, 90(10), 60–68.
Min, J., Kim, H. J., & Jung, E. (2021). How perceived service quality and corporate social
responsibility affect customer behavior during the COVID-19 pandemic.
International Journal of Environmental Research and Public Health, 18(6), 3049.
Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the
Theory of Investment. The American Economic Review, 48(3), 261–297.
Mohamad, N. A., & Saad, N. H. (2010). Working capital management and corporate
performance: Case of Malaysian listed companies. International Journal of
Economics and Finance, 2(2), 157-169. https://doi.org/10.5539/ijef.v2n2p157
Moshood, T. D., Afolabi, A. O., & Akande, N. (2023). Sustainable supply chain management
practices in the manufacturing industry: Empirical evidence from Nigeria.
International Journal of Production Economics, 241, 108420.
https://doi.org/10.1016/j.ijpe.2021.108420
Myers, S. C., & Majluf, N. S. (1984). Corporate Financing and Investment Decisions When
Firms Have Information That Investors Do Not Have. Journal of Financial
Economics, 13(2), 187–221. https://doi.org/10.1016/0304-405X(84)90023-0
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business
profitability. Journal of Marketing, 54(4), 20–35.
Narver, J. C., Slater, S. F., & MacLachlan, D. L. (2004). Responsive and proactive market
orientation and new-product success. Journal of Product Innovation Management,
21(5), 334–347.
Nazir, M. S., Afza, T., & Abidin, S. (2020). Exploring the Impact of Working Capital
Management on Firm Performance: The Moderating Role of Industry Characteristics.
International Journal of Finance & Economics, 25(4), 558–572.
https://doi.org/10.1002/ijfe.1815
Nguyen, D. T., Nguyen, P. T., & Tran, T. T. H. (2020). The impact of customer relationship
management on customer satisfaction and loyalty: The mediation role of relationship
quality. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 141.
Ogink, R. H. A. J., Song, M., & Mesterom, J. (2023). Mechanisms in open innovation: A
systematic literature review and directions for future research. Industrial Marketing
Management, 102, 95-112. https://doi.org/10.1016/j.indmarman.2021.10.002
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale
for measuring consumer perceptions of service quality. Journal of Retailing, 64(1),
12–40.
Payne, A., & Frow, P. (2005). A strategic framework for customer relationship management.
Journal of Marketing, 69(4), 167–176.
Payne, A., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value. Journal of
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
494
the Academy of Marketing Science, 36(1), 83–96.
Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and
competitors. Free Press.
Powell, T. C. (2001). Competitive advantage: Logical and philosophical considerations.
Strategic Management Journal, 22(9), 875–888.
Qian Liu, Wei Xu, Zhaohua Liu, & Jian Wang. (2021). The Innovation Model and Upgrade
Path of China's Digitalization-Driven Tourism Industry. Tourism Management, 86,
104340. https://doi.org/10.1016/j.tourman.2021.104340
Raheman, A., & Nasr, M. (2007). Working Capital Management and Profitability—Case of
Pakistani Firms. International Review of Business Research Papers, 3(1), 279–300.
Rahman, R. A., Rosman, R., & Yusof, S. M. (2019). The impact of working capital
management on the market value of firms in Malaysia. International Journal of
Business and Management, 14(9), 107-119. https://doi.org/10.5539/ijbm.v14n9p107
Rajala, R., Westerlund, M., Rajala, A., & Palmroos, P. (2021). Digitalization and
servitization: Review and synthesis of the literature. Industrial Marketing
Management, 94, 9–24.
Rajan, R. G., Gertner, R. H., & Zingales, L. (2022). The strategic implications of capital
structure: A review of the evidence. Journal of Finance, 53(1), 1335–1368.
https://doi.org/10.1111/0022-1082.00489
Reinartz, W., Krafft, M., & Hoyer, W. D. (2004). The customer relationship management
process: Its measurement and impact on performance. Journal of Marketing Research,
41(3), 293–305.
Rohrbeck, R., Battistella, C., & Huizingh, E. (2013). Corporate foresight: An emerging field
with a rich tradition. Technological Forecasting and Social Change, 80(4), 16–33.
Ros, M., & Schlesinger, L. A. (2009). Customer experience creation: Determinants,
dynamics and management strategies. Journal of Retailing, 85(1), 31–41.
Ruben H.A.J. Ogink, Karel H.M. van Donselaar, David A. Losantos, & Andre H.M. van
Veen. (2021). Mechanisms in Open Innovation: A Systematic Literature Review and
Research Agenda. Technovation, 104, 102291.
https://doi.org/10.1016/j.technovation.2021.102291
Sahney, S., Banwet, D. K., & Karunes, S. (2011). An integrated framework for quality in
education: Application of quality function deployment, interpretive structural
modeling and path analysis. Total Quality Management & Business Excellence, 22(5),
529–556.
Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media.
Management Decision, 50(2), 253–272.
Schneider, B., Ehrhart, M. G., Mayer, D. M., Saltz, J. L., & Niles-Jolly, K. (2018).
Understanding organization-customer links in service settings. Academy of
Management Journal, 61(6), 2267–2294.
Shefrin, H. (2002). Beyond Greed and Fear: Understanding Behavioral Finance and the
Psychology of Investing. Oxford University Press.
Shirokova, G., Arzhenovskiy, S., Makhija, M., & Wales, W. (2022). Exploring the
relationship between corporate entrepreneurship and financial performance: A meta-
analysis. Journal of Business Venturing, 37(2), 108–126.
ATESTASI: JURNAL ILMIAH AKUNTANSI
Vo l 7, Issue 1, (2024), 459 - 495
495
https://doi.org/10.1016/j.jbusvent.2021.106108
Shleifer, A. (2000). Inefficient Markets: An Introduction to Behavioral Finance. Oxford
University Press.
Sivadas, E., & Baker-Prewitt, J. L. (2000). An examination of the relationship between
service quality, customer satisfaction, and store loyalty. International Journal of
Retail & Distribution Management, 28(2), 73–82.
Smith, K. (1980). A Behavioral Model of Rational Choice. The Quarterly Journal of
Economics, 95(2), 327–340. https://doi.org/10.2307/1885326
Taofeeq Durojaye Moshood, Chinenye Justina Nwagbara, & Jummai Edom Audu. (2021).
Sustainability Supply Chain Management Practices and Competitive Advantage:
Evidence from Nigerian Manufacturing Industry. Journal of Cleaner Production, 295,
126372. https://doi.org/10.1016/j.jclepro.2021.126372
Tirole, J. (1988). The theory of industrial organization. The MIT Press.
Twesigye, C. K., Kim, S. W., & Lee, D. H. (2022). Sustainable supply chain management
practices and organizational performance: The mediating role of operational
performance. Sustainability, 14(5), 2066. https://doi.org/10.3390/su14052066
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal
of Marketing, 68(1), 1–17.
Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution.
Journal of the Academy of Marketing Science, 36(1), 1–10.
Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsi
Yusoff, W. N. W., & Ismail, K. N. I. K. (2018). Working capital management components
and firm’s profitability: Evidence from Malaysia. Journal of International Studies,
11(3), 236-251. https://doi.org/10.14254/2071-8330.2018/11-3/18
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1990). Delivering quality service:
Balancing customer perceptions and expectations. Free Press.
