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This study aims to assess the efficiency of managing working capital in 1,388 Indian manufacturing firms from 2008 to 2019 and investigate the effects of firm-specific and macro-level determinants on working capital management (WCM) efficiency.

The current study accommodates a slack-based measure (SBM) in data envelopment analysis (DEA) for computing WCM efficiency. Further, we implement a panel data fixed-effects model that controls for heterogeneity across firms in determining the relationships of selected variables with WCM efficiency.

The results highlight that manufacturing firms operate at around 50 percent efficiency, which is constant throughout the study period. Furthermore, among the selected variables, yield, earnings, age, size, ability to create internal resources, interest rate and gross domestic product (GDP) significantly affect WCM efficiency.

Instead of the traditional models used for assessing efficiency, the SBM-DEA model is unit-invariant and monotone for slacks, implying that it can handle zero and negative data, which overcomes the incapability of prior DEA models. Hence, this provides accurate efficiency scores for robust analysis. Additionally, this paper provides a holistic working capital model recognizing firm-specific and macro-level determinants for a more explicit estimation of the relationship between WCM efficiency and the selected determinants.

Previous research has demonstrated that affirming an individual’s self-worth in intrinsic, stable aspects (e.g. personal attributes) enhances their pro-relationship tendencies, as compared to affirming extrinsic aspects of the individual (e.g. performance). This is especially so among people in certain dissatisfying relationships (e.g. romantic relationships). Extending this finding to organizational contexts, the purpose of this study is to investigate the effects of affirmation type (intrinsic vs extrinsic affirmations) on responses to workplace offenses among employees with high versus low job satisfaction.

Studies 1 (N = 224) and 2 (N = 358) examined the effects of intrinsic versus extrinsic affirmations on responses to hypothetical and real workplace offenses. Furthermore, to compare the effects of intrinsic and extrinsic affirmations to the baseline level, Study 3 (N = 441) added a control condition and examined the effects of affirmation type (intrinsic vs extrinsic vs control) on responses to workplace offenses.

For employees with low (but not high) job satisfaction, (1) intrinsic (vs extrinsic) affirmations promoted more prosocial responses (forgiveness and reconciliation) to workplace offenses; (2) although not as effective as intrinsic affirmations, extrinsic affirmations (vs baseline) also triggered prosocial intentions toward workplace offenses.

First, the study enriches the literature on workplace offenses by focusing on an individual-level factor – self-worth – that can be intervened (e.g. affirming one’s self-worth) by organizations and managers so as to promote prosocial responses to workplace offenses. Second, the study expands the scope of the self-affirmation theory in organizational contexts by examining the effectiveness of intrinsic and extrinsic affirmations in coping with workplace offenses. Third, practically speaking, the study provides a brief intervention (the writing task of describing an intrinsic or extrinsic affirmation experience) that can boost pro-relationships in the workplace.