Working Capital Alchemy: Unveiling Triple Effects and Accounting Best Practices for Global Enterprise Success in Economic Shifts

Abstract

This study examines how working capital mastery drives working capital optimization across receivables and credit management, cash flow and payables management, and liquidity and contingency management, while assessing the moderating role of working capital resilience. Using survey data from 202 finance professionals across manufacturing, hospitality, and tourism, and commercial sectors in Kosovo (2023–2025), the study applies factor analysis, structural equation modeling, and moderation analysis. The findings show that stronger working capital mastery consistently improves all dimensions of working capital optimization. Working capital resilience selectively moderates these relationships, weakening the effects on receivables and liquidity management while slightly strengthening the effects on cash flow and payables management. Overall, the results highlight that aligning working capital mastery with resilience is critical for financial performance, operational efficiency, and adaptability during economic shifts.