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The impact of working capital management dynamics on performance of Tongan enterprises in New Zealand

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dc.contributor.advisor Mitchell, Helen
dc.contributor.advisor Slessor, Andrew Finau, Feletiliki Kefu Manisela 2012-04-01T22:43:50Z 2012-04-01T22:43:50Z 2012 en_NZ
dc.description.abstract Several Tongan businesses operate in different business sectors of Small and Medium Enterprises (SMEs) and contribute wealth to New Zealand economy in terms of value creation. For the success of any Tongan enterprise in New Zealand, the financial management of assets is so crucial. Thus, this research focuses only on the Working Capital Management (WCM) of Tongan SMEs in New Zealand and its direct impact on performance that is vital for business survival and sustainability. WCM deals with the administration of the businesses’ short-term current assets and liabilities that is an important issue for Tongan SMEs’ financial decision making. The business financial performance is measured using working capital ratios, profitability ratios via Du Pont financial analysis. The purpose of this study is to explore and analyse the impact of working capital management dynamics on financial performance of Tongan SMEs in New Zealand. It also aims to explore how Tongan SMEs manage their various working capital components such as cash, inventory, account receivables, account payables, operating cycle, and credit policy management. Consequently, this develops an appropriate conceptual framework model to illustrate the impact of WCM dynamics on performance and providing some key recommendations that will improve Tongan SMEs use of working capital management. The primary data was collected from 8 Tongan enterprises and 4 business consultants in Auckland using a qualitative Pacific research method known as “Talanoa Approach (TA)” in the form of semi-structure interviews and a focus-group. The secondary data was captured from a consecutive five years of financial statements of a selected enterprise as a case study. Furthermore the introduction of a Computer Analysis and Qualitative Data Analysis Software (CAQDAS) of NVivo9 articulates and enhances the thematic coding, analysing and conceptualising model in the light of Talanoa Theory (TT) from the collective data. This study concluded by extending the exploratory Pacific research methodology of Talanoa (T) as a default of qualitative research in financial management context. The Talanoa approach was used for data collection and analysis simultaneously. The Tongan SMEs operating in Auckland have been divided into two groups according to the business models they use. Some of them follow the ‘Western Conventional Model’ and some follow the ‘WC Flexible System’ model of managing their ‘working capital’ which impacts on financial performance. en_NZ
dc.language.iso en en_NZ
dc.subject Small and medium-sized enterprises en_NZ
dc.subject Working capital management en_NZ
dc.subject Western Conventional Model en_NZ
dc.subject WC Flexible System en_NZ
dc.subject Financial performance en_NZ
dc.subject Tongan enterprise en_NZ
dc.subject Talanoa approach en_NZ
dc.title The impact of working capital management dynamics on performance of Tongan enterprises in New Zealand en_NZ
dc.type Masters Thesis en_NZ Master of Business en_NZ Unitec Institute of Technology en_NZ
dc.subject.marsden 150314 Small Business Management en_NZ
unitec.pages 151 en_NZ
dc.contributor.affiliation Unitec Institute of Technology en_NZ

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