The influence of information technology on business management and its impact on working capital.

Abstract

Main Objective: Evaluate how investments in Information Technology (IT) influence business management efficiency, with an emphasis on optimizing working capital.

Problem Diagnosis / Opportunity: The lack of efficiency in working capital management compromises liquidity, operational capacity, and the financial performance of companies. Despite technological advancements, there are still gaps in understanding how IT can reduce costs, improve processes and enhance operational decisions related to working capital.

Methodology / Approach: The study is based on a recent theoretical review, incorporating empirical evidence from international research on IT investments, digital transformation, operational efficiency and working capital.

Results / Application: The findings demonstrate that investment in IT contributes to more agile processes, reduced information asymmetries, and greater control over inventory, accounts payable, and accounts receivable. Digitization improves the cash conversion cycle, reduces fraudulent activities and optimizes the supply chain. However, the ideal impact depends on the characteristics of the sector and the management profile.

Contributions: This research highlights the strategic role of IT in financial and operational management. It demonstrates that well-designed technological initiatives improve working capital efficiency, support informed decision-making, and increase firms’ competitiveness. It also emphasizes the moderating effect of managerial education on the quality and effectiveness of IT investments.