Determinants of organizational performance

Abstract

A holistic, integrative and synergistic performance model is defined by inter‐firm variables represented as economic rates of return for both economic and organizational factors. These variables are used to examine performance variance and their economic contribution to firm profitability. An extensive literature review has been conducted to discover the commonality of underlying constructs and themes within the research stream on organizational performance. An analysis of the data suggests that there exists a set of common variables to explain organizational performance variance. Builds on the results of an earlier study that indicates organizational factors explain almost twice as much variance in profit rates as do economic factors. Proposes a systemic framework on which to partition the economic contribution of these interdependent determinant factors of organizational performance.