CPO Price Fluctuations And Accounting Practices On The Resilience Of SMEs: The Moderating Role Of Working Capital

Abstrak

This study examines the effects of crude palm oil (CPO) price fluctuation and accounting practices on the financial resilience of micro, small, and medium enterprises (MSMEs) in the palm oil value chain, and tests whether working capital management moderates these relationships. Data were collected from 35 MSMEs using a five-point Likert questionnaire and analysed with partial least squares structural equation modelling (PLS-SEM), using a two-stage approach for the moderating effects and 5,000 bootstrap resamples. After one indicator of CPO price fluctuation was removed, the measurement model met the criteria for indicator reliability, composite reliability, convergent validity, and discriminant validity. Accounting practices have a positive and significant effect on financial resilience (β = 0.563; t = 2.836; p = 0.008), whereas CPO price fluctuation (β = -0.005) and working capital management (β = 0.161) are not significant. Working capital management does not moderate either relationship. The model explains 43.6% of the variance in financial resilience. The findings suggest that systematic bookkeeping and the use of accounting information are the most relevant internal capabilities for strengthening MSME resilience, although the small sample calls for cautious interpretation.