Working Capital Mediated, KPI and Dollarization: An Investigation of Mediating Effects

This research investigates effect of financial strength, cash turnover, KPI and dollarization of electronic and electrical companies in Tripoli, Lebanon. A devaluation of the American dollar against the Lebanese lira pushed the companies to focus on the cash process rather than bank account interaction. The originality of this study is defined through exploring scenario cash, KPI, dollarization and financial practices in Tripoli, Lebanon. Additional studies should be investigated on business processes for electronic and electrical companies. This article aims to find best practices due of the economic crisis that face Lebanon during the financial distress in 2019. Applying descriptive method and quantitative approach. Sample size of 80 respondents is divided into 8 companies, with 10 respondents per company. SPSS version 26 and SPSS Andrew F. Hayes model 6 and AMOS are applied for analyzing collected data. The results indicate that determinant was 0.001 and KMO is equal to 0.864. The communality items have acceptable results. All the results of the Cronbach’s alpha output provide an acceptable result and describe an acceptable of the level of internal consistency for the model size measured. All the Pearson values suggest strong relationship between the variables reflect a large effect and a covary linear output. KPI has an impact on financial strength, financial strength has an impact on Dollarization, Dollarization has an impact on cash turnover and KPI has an impact on Cash turnover fully and sequentially mediated by financial strength and dollarization.