Affect Business Performance Research Articles

Capital Structure and Corporate Performance: An Empirical Analysis from Central Europe

The capital structure and its indicators play a significant role in corporate finance. The aim is to estimate business performance using selected indicators describing primarily the capital structure, asset structure, or liquidity of transport companies in Central Europe. The total sample consists of almost 4000 small and medium-sized enterprises in the transport sector. This data is collected from Amadeus Bureau van Dijk. The results show that six out of ten variables are statistically significant predictors affecting business performance; two out of the six indicators are categorical variables, such as the company size classified into small and medium enterprises and the country divided into the Czech Republic, Hungary, Poland, or Slovakia. We find that Hungarian medium-sized enterprises show higher profitability than other enterprises, assuming other factors are unchanged. Finally, the results demonstrate that a high debt ratio and a high share of non-current assets in total assets have a negative impact on corporate performance in contrast to the current ratio and the share of cash and cash equivalents in total assets. In other words, liquidity and cash and its equivalents have a significant role in increasing business performance. These findings are specific because, generally, high liquidity does not positively impact performance.

The Relation between Bio-Industry Performance and Innovation Capacity—Focusing on the Korean Bio-Industry

After the COVID-19 pandemic, the bio-industry is becoming increasingly important. Therefore, it is necessary to respond to the changed environment after COVID-19 by analyzing the bio-industry situation before the COVID-19 pandemic. In addition, Korean bio-industry is a very important industry for Korea’s economic growth, so huge investments are being made in the development of bio-companies. Therefore, it is necessary to analyze the effect of innovation capabilities on the performance of the Korean bio-industry. Korea’s bio-industry has been developing under the leadership of the government. Thus, Korea’s bio-companies need various forms of innovation to achieve sustainability through competitive advantage on their own. The objective of this research is to find the competitive advantage factors that improve the innovation ability of the Korean bio-industry. Therefore, the elements that increase a company’s innovation capability were studied in order to uncover competitive advantage factors that improve the Korean bio-industry’s innovation capability, and the effect on corporate performance was analyzed. Using samples from the ‘Korean Bio-industry Survey’, the current state of the Korean bio-industry was examined through a review of all bio-industry enterprises. In addition, each of the eight bio-industries was examined using Korea’s industrial classification system. As an analysis method, multiple regression analysis of SPSS 25 was performed to analyze how the six input factors have a complex effect on the output factor. This study discovered that R&D intensity, machine investment, and human resource characteristics all had an impact on the business performance of Korean biotech enterprises. In eight bio-sectors, elements affecting company success were defined differently. Therefore, through this study, Korean bio-companies must understand their own industrial characteristics, and develop factors that affect business performance through strategic operational management. In addition, based on the results of this study, companies should strengthen the innovation capabilities of the bio-industry to survive post-COVID-19, analyze changes in innovation capabilities, and promote sustainable growth by strengthening key innovation factors.

Factors affecting business performance of e-mobility companies in Korea

The emergence of e-mobility is leading to significant changes in the field of mobility. It has the potential to address the issue of climate change and provide personalized technology to various consumers through the use of intelligent technology. As e-mobility is an emerging industry, technological innovation and the survival and growth of companies within it are crucial. Unlike the automobile industry, e-mobility industry is a low-tech sector and low entry barriers, and has characteristics that are composed of SMEs. Nevertheless, there is a lack of research on the factors that affect the performance of e-mobility companies. This study aimed to identify the performance factors of e-mobility companies and analyze their impact on growth and profits. The study was conducted on the e-mobility industry in Korea, where advanced ICT and transportation technology have enabled the industry to make significant progress. The study found that higher investment in R&D for technological innovation led to better growth potential and profitability for e-mobility companies. It also revealed that improving synergies at the regional level cluster policy is crucial for performance, rather than just temporary policy support at the national level.

The performance effects of supply chain agility with sensing and responding as formative capabilities

PurposeThe study presents a conceptual model of a firm's supply chain agility (FSCA) as a formative construct formed by sensing and responding capabilities. Both construct validity and predictive validity of the model are tested by investigating nuanced effects of FSCA on business performance. The study aims to empirically validate the sensing-responding theoretical framework of Overby et al. (2006) and extend the emergent stream on sensing-responding frameworks for supply chain agility.Design/methodology/approachSurvey research is employed. Data are analysed using partial least squares technique and mediation tests by Hayes PROCESS macro.FindingsFSCA is established as a revised construct formed by the distinct capabilities of sensing and responding. The efficacy of utilizing FSCA as a formative 2nd order construct was established. In addition, FSCA is shown to affect business performance through mediations of cost efficiency and customer effectiveness, establishing its predictive validity.Originality/valueThis study contributes significantly to the literature on supply chain agility in terms of both theory and practice for cultivating supply chain agility. Drawing on resource-based view and resource-advantage theories, as reformulation of supply chain agility as a formative construct of sensing and responding capabilities, this research opens up new lines of inquiry on agility.

The Impact of Technological Innovation on Managerial Competency and Business Performance in the Manufacturing Sector: A Study of Chinese Companies

This conceptual paper explores the relationship between technological innovation, managerial competency, and business performance in the manufacturing sector, focusing on Chinese companies. Technological advancements have become increasingly crucial for enhancing competitiveness in the manufacturing industry. Moreover, effective management practices are essential for leveraging the benefits of technological innovation. However, the combined effect of technological innovation and managerial competency on business performance, particularly in the Chinese manufacturing context, remains understudied. This study aims to address this gap by examining how technological innovation influences managerial competency and subsequently affects business performance. The findings of this study have theoretical implications for understanding the dynamics of technological innovation and managerial competency and practical implications for strategic decision-making in Chinese manufacturing firms.

Exploring the impact of managerial abilities on the competitive advantage and performance of creative industries in Indonesia during the post-pandemic recovery phase

In the pre-COVID-19 era, the creative fashion industry stood as a robust pillar in Indonesia's economy, contributing to over 50 percent of the nation's creative economy exports. Batik clothing and hijabs were at the forefront, emerging as the key export products. However, with the advent of the COVID-19 pandemic, this once thriving sector suffered substantial setbacks. This study aims to investigate how managerial ability influences competitive advantage, and whether the performance of that small-medium creative sectors is directly affected by managerial ability or indirectly through the mediation of competitive advantage. Our study aims to extent the existing studies by focusing on the sustained resilience of businesses in a post-pandemic. The study's sample consists of 134 Batik business owners and/or managers from East Java, Indonesia. The gathered data was then processed and analyzed using a structural equation model. Although the findings indicated that managerial ability did not directly affect business performance, there was a positive relationship between managerial ability and business performance when mediated by the competitive advantage. These findings suggest that competitive advantage continues to play a crucial role in business performance. The higher the managerial ability, the greater the potential to enhance their competitive, which in turn escalates their performance.

Business Ethics and Erm Influence on SME Company Performance Moderated by Business Strategy

Small and Medium Enterprises (SMEs) are one of the sectors not affected by several financial crises. However, Covid 19 pandemic has affected business performance due to restrictions on business activities. This Study aims to see Business Ethics, Enterprise Risk Management (ERM) influence company performance with moderation by SME Business Strategy in Indonesia. The research was conducted on Performing Loan borrowers at Bank Mandiri who came from seven provinces in Indonesia. According to Slovin Formula, the minimum sample size required is 362 companies from a population of 3,777. They have at least three years of business experience and annual sales of more than 5 billion rupiahs to a maximum of 50 billion rupiahs. The Structural Equation Model (SEM) method is used in quantitative research, and SmartPLS 3.0 and SPSS 26 software are used in data processing and analysis. Study results indicate that Business Ethics and Enterprise Risk Management positively and significantly influence company performance. In contrast, Business Strategy does not have a moderate relationship between Business Ethics and Enterprise Risk Management Company Performance. Based on the findings, in facing the economic crisis, SMEs must continue to apply Business Ethics, Business Risk Management, and other variables that affect their business performance appropriately.

Research on the Determination of the Factors Affecting Business Performance in Beekeeping Production

A competitive business environment pushes beekeepers to the creation of value at a higher level than the competition in a way that is difficult to imitate. In order to survive in a competitive business environment, beekeeping producers must direct their resources towards innovative solutions, which can include honey quality assurance programmes and further product development, as well as creation of value-added honey products that is translated in good business performance. As the potential of the Republic of Serbia’s beekeeping production can be strengthened and its products exported beyond the national market, there is a need to examine the influence of a set of factors that can impact the beekeeper’s business performance. Therefore, this paper will examine the direct and indirect influence of the competitive environment (the business environment opportunities, threats and the relationships with the consumers) and innovative performance (in the field of marketing, product design, product quality, distribution, manufacturing and time to market) on the business performance of Serbian beekeepers. This research uses the SEM method with the SmartPLS tool. The findings of the model have confirmed that a competitive environment and innovative performance have a direct positive, statistically significant impact on the business performance of Serbian beekeeping production. A weak indirect influence of a competitive environment on the business performance of beekeepers has been confirmed. The model has proven to be significant, and a high percentage of variations in beekeepers’ business performance has been explained by the influence of two independent variables (competitive environment and innovative performance). As there is no previous research on the nexus of the competitive environment, innovative performance and business performance of Serbian beekeepers, these findings may be of special interest to authors and researchers, beekeeping organizations and representatives of agricultural advisory services.

Exploring the impact of R&D intensity, human capital, patents, and brand value on business performance in small and medium enterprises (SMEs)

The study of business performance has a substantial impact on improving the internal management and economic performance of companies. By analysing the previous literature, this paper chooses to measure the factors affecting business performance at four levels, including R&D investment intensity, human capital, patents, and brand value. The purpose of the study is to find out whether these selected factors work equally well for small and medium-sized enterprises. The sample size was 846 Chinese small and medium enterprises from different industries. The firm performance indicators were ROA and ROE. The data has been collected through National Equities Exchange and Quotations platforms based on updated annual reports in 2019. Finally, a stepwise descriptive analysis and multiple linear regression were conducted and predicted the tendency of business performance. The analysis provided the linear combination of four independent variables (R&D, human capital, patents, and brand value) which are significantly related to the dependent variable (business performance). In conclusion, we found that there is a positive impact of patents and brand value on business performance. In detail, we concluded that only production and highly educated personnel show a positive influence. For R&D intensity, there is no strong connection could be observed. In practical terms, this paper allows SME firms to appreciate the importance of human capital, patents, and brand value.

Entrepreneurial Marketing Impact Score on MSME Performances Through Its Dimension

The presence of the entrepreneurial marketing concept is considered capable of overcoming marketing problems in MSMEs. This study aims to determine the specific magnitude of the influence score given by each entrepreneurial marketing dimension to MSMEs in Bengkulu City. This study focuses on culinary MSMEs that are the mainstay sector of the region. The effective and relative contribution has been used to measure the influence score of its dimension on performance and 183 questionnaires are distributed to the owners of MSMEs in Bengkulu City. The results show that the dimension of resource leverage most dominantly affects business performance. Meanwhile, calculated risk-taking has a minor effect. Essentially, culinary MSME business actors in Bengkulu City must improve their ability to effectively predict the problem in the future that can be done by joining risk management certification or webinar.JEL Classification: L25, L26, L66How to Cite:Putri, M. K., & Putri, A. N. (2023). Entrepreneurial Marketing Impact Score on MSME Performance Through Its Dimension. Etikonomi, 22(1), 79–92. https://doi.org/10.15408/etk.v22i1.25617.

The Effect of Information Sharing, Knowledge Sharing, and Social Capital on Business Performance Mediated by Innovation (Study on Small Food Industry in Pekanbaru City

The increase in the number of SMEs every year in the city of Pekanbaru creates high, dynamic, and turbulence competition that demands business actors to continue to improve supply chain management, knowledge sharing, social capital and innovation so that their business performance increases to provide added value and excel in competition. This study aims to determine the effect of Information Sharing, Knowledge Sharing and Social Capital on Business Performance mediated by innovation. This study uses data analysis tools and structural equation modelling (SEM) using Smart-PLS program ver 3.0. The sampling technique chosen is the Cluster Sampling method (236 small food industry players in Pekanbaru City). The study results show that: Information Sharing has a positive and not significant effect on innovation. Knowledge sharing and social capital have a positive and significant impact on innovation. Information sharing and social capital positively and significantly affect business performance. Knowledge sharing has a positive and not significant effect on the performance of the business. Innovation has a positive and significant effect on business performance. Information sharing and social capital through innovation on performance business have a positive but insignificant effect. Knowledge sharing through innovation on business performance has a positive and significant effect.

Muslim Indonesian women entrepreneurs: a factor analysis of business performance

PurposeMuslim Indonesian women entrepreneurs (MIWEs) lie at the intersection of religion and gender. Given the growing participation of women in entrepreneurship and economic stability in Indonesia, the purpose of this study is to identify the factors (and their significance) influencing MIWEs’ business performance.Design/methodology/approachA survey of 101 MIWEs was conducted, and results were analyzed via structural modelling equation using SmartPLS 3.FindingsThe findings of this study suggest that, within the macro frame of the moderate version of Islam practiced and women’s economic engagement, women business owners’ skills and religious factors significantly influence their business performance. Factor analysis indicates that the role of the veil, Shariah guidance for business and managing stress through the practice of Salah (prayer) are important for MIWEs. However, this study also indicates that, in addition to religious factors, MIWEs’ own effective and participative leadership style, honesty and fairness reputation in business dealings and a good market image are also significant variables affecting business performance. This is in contrast to past studies, where the role of environmental factors such as access to capital, family and government has been shown to have a stronger influence on Muslim women entrepreneurs’ business performance.Originality/valueBecause of Indonesia’s unique pluralistic national context, along with increasing women’s economic participation, MIWEs emerge as a distinct category of entrepreneurs who integrate religion and their own skills to navigate their business performance.

Enhancing Performance Through MSME Entrepreneurship, Product Innovation Capabilities and Competitive Advantage in Kudus Regency's Culinary Sector


 
 
 
 Research aims: This study is to determine performance improvement through MSME entrepreneurship, product innovation capabilities and competitive advantage in the culinary field of Kudus district.
 Design/Methodology/Approach: This research is a descriptive research. Data was collected from the population of MSME owners and actors in the culinary industry in Kudus Regency. Target sampling is done to target prospective respondents with certain characteristics. Respondent criteria are: Have a micro business that offers culinary products and has been established or operating for at least 1 year and the respondent has a minimum educational background of high school or equivalent. This research was conducted in Kudus Regency by involving 270 respondents. This study also explores factors that can affect business performance, namely: Entrepreneurial orientation, Product innovation capability, and Competitive advantage.
 Research findings: The results of the research show that based on the results of the research there are many things that can be considered important in the Entrepreneurship Orientation process, especially how culinary MSME actors in Kab. Kudus is able to be Entrepreneurial Oriented by cultivating its product innovation capabilities, so that it can create and make new improvements to the merchandise presented so that with continuously developing innovation it can create the right merchandise that is not easily imitated through competition so that someone
 Theoretical contribution/Originality: The novelty of this study is that this test uses the Service Dominant Logic approach. Entrepreneurial Orientation is a multidimensional behavioral concept consisting of an innovation component, an opportunity-taking component, and a proactive attitude component. In the context of this study, there can be aggressive gains.
 Practitioner/Policy implication: Both the government and especially the Kudus area to better improve entrepreneurial performance
 Keywords: MSME Entrepreneurship, Product Innovation Capability, and Performance Improvement
 
 
 
 
 Research aims: This study is to determine performance improvement through MSME entrepreneurship, product innovation capabilities and competitive advantage in the culinary field of Kudus district.
 Design/Methodology/Approach: This research is a descriptive research. Data was collected from the population of MSME owners and actors in the culinary industry in Kudus Regency. Target sampling is done to target prospective respondents with certain characteristics. Respondent criteria are: Have a micro business that offers culinary products and has been established or operating for at least 1 year and the respondent has a minimum educational background of high school or equivalent. This research was conducted in Kudus Regency by involving 270 respondents. This study also explores factors that can affect business performance, namely: Entrepreneurial orientation, Product innovation capability, and Competitive advantage.
 Research findings: The results of the research show that based on the results of the research there are many things that can be considered important in the Entrepreneurship Orientation process, especially how culinary MSME actors in Kab. Kudus is able to be Entrepreneurial Oriented by cultivating its product innovation capabilities, so that it can create and make new improvements to the merchandise presented so that with continuously developing innovation it can create the right merchandise that is not easily imitated through competition so that someone
 Theoretical contribution/Originality: The novelty of this study is that this test uses the Service Dominant Logic approach. Entrepreneurial Orientation is a multidimensional behavioral concept consisting of an innovation component, an opportunity-taking component, and a proactive attitude component. In the context of this study, there can be aggressive gains.
 Practitioner/Policy implication: Both the government and especially the Kudus area to better improve entrepreneurial performance
 
 
 
 
 
 
 
 

How Organizational Resources and Managerial Features Affect Business Performance: An Analysis in the Greek Wine Industry

Despite the growing interest of the wine industry in quality and environmental certifications and the influence of these standards on positioning in international markets, scholarly research has paid proportionally limited attention to the link between winery export intensity and the adoption of internationally recognized standards. This study aims to analyze which factors make an organizational model performant, and to verify the impact of the adoption of third-party certifications on the export performance by using the resource-based view (RBV) theory as a theoretical lens. Findings show that younger wineries are more oriented towards the adoption of voluntary quality and environmental certifications, and they achieve the best economic performance, expressed in terms of overall turnover on the market. On the contrary, the better export performance is achieved by the largest group of wineries, which make the greatest effort in promotion and advertising activities and sell their products through intermediaries, while showing a low adoption of certifications. Our results have a number of theoretical and practical implications.

How Does External Knowledge Sourcing Affect Business Performance in Large-Scale Firms? The Mediating Role of Open Technology Strategies

This article examines the mediating impact of open technology strategies (OTS) on the link between three types of external knowledge sources (i.e., scientific, institutional, and indirect partners) and business performance (BP). Structural equation modeling is conducted in order to test the research model based on a survey of 241 companies drawn from the database of Turkey's largest 500 manufacturing companies. The study's findings indicate that the implementation of OTS mediates the relationships between external knowledge sourcing (EKS) from scientific partners and indirect partners with BP. However, no support is found for the mediation effect of OTS on the link between EKS from institutional partners and BP. This article extends the innovation literature by empirically investigating open innovation in large-scale companies in emerging country settings.

Analysis of Factors Affecting Business Performance: Empirical Study of Hospitals in East Java

Purpose: Hospitalization in Indonesia continued to increase by 5.2% per year in 2018, with the most significant number of hospitals in Indonesia being in the province of East Java. However, Indonesia is the most important contributor to overseas medical visits. Total expenses reach IDR 161 trillion/year (US$ 11.5 billion/year), and 80% of visits are to Malaysia, where every year, million Indonesian citizens (WNI) seek treatment abroad. Of this amount, the total costs incurred reached IDR 97 trillion. This becomes a question, what triggers Indonesian citizens to seek treatment abroad? This study aims to analyze the factors that influence business performance in hospitals in East Java.
 Methods: This study used a purposive sampling technique with a total sample of 62 respondents. Respondents in this study were hospital leaders in East Java. This study uses a quantitative approach with the analysis in this study using Smart PLS.
 Result: the results show that environmental uncertainties hurt the business performance of the hospital. This result is due to environmental uncertainties being a broad factor, difficult to predict either individually or collectively. However, environmental uncertainties have a significant positive effect on strategic orientation. Environmental uncertainties have a negative and significant effect on managerial capability. Meanwhile, strategic direction and managerial capability have a positive and significant effect on the business performance of hospitals in East Java.

Reawakening Digital Innovation and Collaboration Strategy: Strategies to Improve Business Performance

Purpose: The objective of this study is to examine the effect of company resources on digital innovation, collaboration strategy, and business performance, as well as the effect of company resources on business performance through digital innovation and collaboration strategy. Research Design: This study uses a quantitative research approach. Observations were made in a cross-section time horizon, in 2022. The Population of this study is the ISP industry, which amounted to 474 companies, and the unit of observation was the management. Sampling used stratified random sampling. ISPs are grouped based on the size of each company based on the number of customers and branch cities are divided into 3 groups: small, medium, and large. Samples were taken many as 100 respondents. Sampling from each classification is done randomly based on a list of population members. Testing the causality hypothesis in this study used PLS (Partial Least Square). Results: the hypothesis testing reveals that company resources play a significant role in developing digital innovation and collaboration strategies. Company resources do not significantly directly affect business performance, but significantly affect business performance through digital innovation and collaboration strategy. Findings: The study provided managerial implications for ISP company management in Indonesia, that collaboration strategy and digital innovation can increase the influence of the development and utilization of company resources on business performance so that companies no longer have to develop and own all of their resources independently. By elaborating their collaboration strategy and digital innovation, companies can focus on developing key resources and additional digital innovations needed to increase the company's competitive advantage. Limitation: the measurement of variables was carried out based on the management's perception of the conditions and situations faced during the COVID-19 pandemic in 2021-2022. To get a deeper understanding and truly describe the details of the empirical conditions, it is necessary to complement qualitative research through confirmatory and in-depth interviews.

Learning from entrepreneurial failure: examining attribution and contextual factors of small- and medium-sized enterprises in Indonesia

PurposeThis study's main objective is to examine the effect of learning from entrepreneurial failure on performance, with a type of failure as a moderator variable. Interactions between internal and external causes of failure and learning from entrepreneurial failure are also investigated, as well as entrepreneurs' aspects (i.e. age, experience and education) and organisational contextual factors (i.e. size, sector and location).Design/methodology/approachThis study employed a hypothetico-deductive approach through a survey of 250 purposively sampled entrepreneurs who had suffered business failures. The survey data were subjected to regression analysis and moderated regression using WarpPLS software and an independent sample t test for an in-depth analysis.FindingsThe results indicated that learning from entrepreneurial failure positively affected business performance, an effect moderated by the type of failure, particularly with large failures. Only perceived internal causes of failure exerted a positive effect on learning from entrepreneurial failure; the external causes did not. The effect of failure on business performance was stronger on entrepreneurs who were older and experienced, had non-university educations and operated small- and medium-sized enterprises (SMEs) outside Java–Bali islands.Originality/valueThis study's findings provide empirical evidence that supports the experiential learning theory and attribution theory in explaining the interaction between learning and failure, its cause, its consequences and its magnitude as perceived by entrepreneurs of SMEs in Indonesia, where the rate of failure is relatively high. The authors’ study also emphasises the roles of the entrepreneur and organisational contextual factors, which matter in learning to improve performance.

Use of Controlling Instruments in Croatian Companies during the Pandemic

Nowadays, in times of corona crisis, controlling is gaining much attention because it represents an effective internal mechanism that can greatly contribute to a timely and rapid response to changes. Controlling activities reflect the quality of company management at the strategic, tactical, and operational levels. In doing so, controlling uses appropriate instruments and contributes to business efficiency and effectiveness. The research aims to determine the current state of controlling instrument application (operational/strategic) in companies. Further, we examine the role of controlling in stabilizing business operations and adjusting business strategies that affect business performance indicators in the context of the corona crisis. The survey method was used and data were collected from 180 companies of different sizes in the Republic of Croatia. The survey was conducted in 2021. Nonparametric techniques, the Chi-square test and the Kruskal-Wallis test were used for hypothesis testing. The findings show: (1) there is a significant relationship between the role of controlling in business stabilization and business strategy redirection in times of corona crisis and thus affects business indicators measured by liquidity, profitability and indebtedness, (2) there is a statistically significant difference between those companies who established controlling department and those without a controlling department in the application of operational controlling instruments, (3) there is no a statistically significant difference between those companies who established controlling department and those without a controlling department in the application of strategic controlling instruments. The results of the study provide insight into the application of controlling instruments in Croatian companies during the corona crisis and empirical implications for academics and practitioners. <br />Implications for Central European audience: Nowadays, market volatility and external factors significantly influence the business decisions of Central European companies. For managerial decisions to be timely and effective, controlling uses various instruments with the aim of better advising managers. To be more agile, companies have to use a combination of operational and strategic controlling instruments. In the Republic of Croatia, as a post-transition country, companies are more short-term oriented, which is visible in the significant use of operational controlling instruments, and to a lesser extent strategic instruments. In times of pandemic and geopolitical events, the results of the research indicate the need for the strategic orientation of companies through the application of strategic controlling instruments in the practice of Croatian companies to increase the efficiency and effectiveness of operations.

Role of Organizational Citizenship Behaviour in Firm Performance: A Cross-Sectional Perspective

Employees' independent decisions to support the overall effectiveness and success of their company are referred to as organizational citizenship behavior (OCB). It encompasses actions like supporting coworkers, offering to complete extra work, taking initiative, and acting ethically in the workplace. As companies look for ways to boost their performance and stay ahead of the competition, OCB is becoming more and more significant in today's competitive business environment. As businesses become more aware of the value of employee behavior in accomplishing their objectives, the idea of OCB is gaining ground in India.Increased productivity, work happiness, and staff retention are some benefits of OCB that affect business performance. Employees who participate in OCB are more likely to give outstanding service and go above and beyond for their clients, which can increase customer satisfaction and loyalty. Despite the potential advantages of OCB, it can be difficult for organizations to promote and reward these behaviors. This is so because OCB is optional and not included in an employee's job description. However, companies may encourage employees to engage in these behaviors and profit from higher performance by fostering a culture that values and encourages OCB.