Sustainability as a key factor in business growth:
evidence from the textile sector of Tungurahua
Keywords:
Sustainable growth , intellectual capital , cash flow adequacy , textile sectorAbstract
This study analyzes the determinants of sustainable financial growth in companies within the textile sector (CIIU C1410.02) of Tungurahua, a key sector for the local economy. Balanced and sustainable growth is essential to maintain financial stability and ensure the long-term competitiveness of these companies. Therefore, the study employs a quantitative approach with an explanatory design based on secondary data obtained from the financial reports of companies registered with the Superintendency of Companies, Securities and Insurance (SUPERCIAS) during the period 2020-2023. Several key indicators were calculated, including Higgins' Sustainable Growth Model, the VAIC Index for Intellectual Capital, and Altman's Z-Score to assess financial health. The results revealed that cash adequacy and the financial condition of firms had a significant impact on the sustainable growth rate, whereas intellectual capital showed no statistically significant relationship in the estimated model. Therefore, it is concluded that efficient financial management, combined with the optimization of intellectual capital, can enhance sustainable growth without the need for excessive external financing.
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