The Relationship between Operational and Market Efficiency Improvement Towards Financial Performance

Abstract

Purpose –The purpose of this study is to identify and explore the relationship between operational and market efficiency improvement towards financial performance in Malaysia as well as including multidimensional conceptual framework. Design/Methodology/Approach–The data for this quantitative study were gathered from 100 companies. Quality managers were used as key respondent as the reliability and the validity of the questionnaire were thoroughly examined. The results are based on regression analysis and equation modelling by using SPSS software. Then, the data will be analysed in the relationship of each construct using the structural equation modelling approach. Findings – The findings of the study provide strong grounds that operation and market efficiency improvement are highly connected with advances in involved in quality awareness, productivity, the better execution of operations performance, market share, customer satisfaction and sales revenues support were found to be the relations of a firm’s financial performance. Practical Implications – As analytical effort in order to point out area that companies should emphasize as to improvement the financial performance that give the potential benefit. Originality/Value – The report projects an enhanced conceptual framework that examines critical issues concerning the successful relationship of operational and market efficiency, thus, providing valuable outcomes for decision makers and academics. This theoretical study found that the framework could explain better each variable which has a relationship with the operational and market efficiency improvement towards firm’s financial performance.