Financial Performance Metrics Research Articles

Cashflow Management Practices and Financial Performance of Small and Medium Business Enterprises in Kenya

This comprehensive review examines cash management and its impact on the financial performance of Small and Medium Enterprises (SMEs). The review covers theories, practices, and empirical evidence, providing insights into financial management strategies. Theoretical perspectives include the Dynamic Trade-Off Theory and the Free Cash Flow Theory, which shed light on the implications for SMEs' financial management strategies. Empirical evidence underscores the importance of cash accountability, internal controls, cash policy, cash budgeting, and financial performance metrics like profitability, liquidity, and solvency. Effective cash management is crucial for SMEs as it enables growth, optimizes investments, enhances profitability, and ensures financial stability. This synthesis offers valuable insights for policymakers, practitioners, and academics seeking to understand and enhance SMEs' financial performance through sound cash management practices.

Does environmental and social performance affect pricing efficiency? Evidence from earnings conference call tones

This paper examines how environmental and social (ES) performance, proxied by related incidents, affect the managerial and analyst tones in quarterly earnings conference calls and its incremental effect on post-earnings call returns. We document that firms experiencing poor ES performance in the quarter prior to the earnings call exhibit more negative management tone after controlling for quarterly financial performance metrics. Tone difference in conference calls between managers and analysts predicts negative abnormal returns in the three-day window around the call. In the 60-day post-call period, we show that firms with poor ES performance exhibit returns negatively related to the tone difference on the conference call – low tone difference leads to return continuation and high tone difference predicts reversals for firms with positive earnings surprises. These results are consistent with an increase in information asymmetry and lower transparency for firms following poor ES performance.

A Study on Operational Efficiency of Cold Supply Chain Service Providers with Special Reference to Selected Container Operators

The demand for cold supply chain services has surged with the global expansion of perishable goods trade. Efficient management of temperature-sensitive products relies heavily on the operational performance of cold supply chain service providers. This study aims to evaluate the operational efficiency of selected container operators within the cold supply chain domain. Employing a mixed-methods approach, quantitative data will be collected through financial performance metrics, operational indicators, and customer satisfaction surveys. Additionally, qualitative insights will be gathered through interviews with industry experts and key stakeholders. By analysing the collected data, this research seeks to identify factors influencing operational efficiency, challenges faced by container operators, and best practices for enhancing performance. The findings of this study will contribute to the development of strategies for improving operational efficiency in the cold supply chain sector, ultimately benefiting both service providers and stakeholders. KEYWORDS: Temperature, Container, Pharmaceuticals, Biotechnology, Storage Facilities, Coimbatore, Tirupur

Examining the Influence of Risk Management Committee Dynamics on Financial Performance: A Case Study of Listed Insurance Companies in Nigeria

The Nigerian insurance industry has experienced substantial growth due to factors like increased awareness, regulatory reforms, and technological advancements. This research aimed to explore how the composition, structure, and activities of risk management committees influence key financial performance metrics, focusing on return on assets (ROA). Data from annual reports and audited financial statements of selected insurance companies listed on the Nigerian Exchange Group from 2013 to 2022 were analyzed using both descriptive and inferential statistics. The study revealed that risk management committee size and meeting frequency positively impact financial performance, suggesting that larger committees and more frequent meetings correlate with better financial outcomes. However, factors like committee independence and gender diversity had insignificant effects on financial performance. In conclusion, the presence and effectiveness of risk management committees significantly affect the financial performance of listed insurance companies in Nigeria. The study recommends that insurance companies prioritize diverse committee compositions to benefit from a wider range of expertise and perspectives.

The Influence of Financial Indicators on Vietnamese Enterprise’s Sustainability Reports Disclosing Process

Sustainability reporting has become increasingly crucial for businesses worldwide, communicating environmental, social, and governance (ESG) performance to stakeholders. Despite the growing importance of sustainability reporting, there remains a gap in understanding how financial indicators influence the disclosure process, particularly in Vietnamese enterprises. This paper aims to address this gap by investigating the influence of financial indicators on the sustainability reporting practices of Vietnamese companies. Employing a mixed-methods approach, combining a quantitative analysis of financial data with a qualitative assessment of sustainability reports, the research seeks to uncover the nuanced relationship between financial performance metrics and the quality and extent of sustainability disclosures. The research was conducted to identify, evaluate, and measure financial factors affecting the quality of companies’ sustainability reports in Vietnam. The research is based on scoring the sustainable development reports of the top 100 listed joint stock companies on the HOSE—Ho Chi Minh City Stock Exchange. Based on the research model of Dissanayake, in the case of Vietnam, we build a scoring model for the sustainable development report based on GRI standards and add additional criteria appropriate to the situation of each listed company on the Vietnam stock exchange. Based on the research overview, our team tested hypotheses related to the short-term current ratio, total asset turnover ratio (AT), return on equity ratio (ROE), and debt-to-equity ratio (DE). The empirical results show that the AT and ROE significantly positively affect the sustainability reports; the DE hurts the sustainability reports. The findings are expected to provide valuable insights into the factors shaping sustainability reporting practices in Vietnam and contribute to the existing literature on corporate disclosure and sustainability.

Integrating accounting models with supply chain management in the aerospace industry: A strategic approach to enhancing efficiency and reducing costs in the U.S

This concept paper proposes the integration of accounting models with supply chain management in the aerospace industry as a strategic approach to enhancing efficiency and reducing costs in the United States. The aerospace sector faces numerous challenges, including complex supply chains, stringent regulatory requirements, and cost pressures. By combining accounting principles with supply chain management strategies, this approach aims to optimize operations, improve financial transparency, and foster collaboration among stakeholders. Key objectives of this initiative include streamlining financial processes, enhancing decision-making capabilities, and mitigating risks associated with supply chain disruptions. By leveraging accounting models such as activity-based costing, lean accounting, and performance measurement systems, organizations can gain insights into cost structures, identify inefficiencies, and allocate resources effectively across the supply chain. Moreover, integrating accounting with supply chain management enables real-time monitoring of financial performance metrics, enabling timely interventions and adjustments to achieve strategic goals. This approach also facilitates better coordination between finance and operations teams, leading to improved communication, alignment of objectives, and ultimately, enhanced organizational performance. In the context of the aerospace industry, where precision, reliability, and cost-efficiency are paramount, this integrated approach offers significant benefits. It enables companies to optimize inventory management, minimize waste, and identify opportunities for cost savings throughout the supply chain. Additionally, by fostering a culture of continuous improvement and data-driven decision-making, organizations can adapt more effectively to market dynamics and gain a competitive edge. This concept paper outlines the theoretical framework and practical implications of integrating accounting models with supply chain management in the aerospace industry. Through case studies, best practices, and implementation strategies, it provides a roadmap for organizations to embrace this strategic approach and realize its full potential in enhancing efficiency and reducing costs in the U.S. aerospace sector.

Examining the Interplay between CEPSA’s ESG Performance and Financial Performance: An Overview of the Energy Sector Transformation

This study delves into the financial performance of the Compañía Española de Petróleos, S.A.U. (CEPSA) within the context of the ongoing ESG transformation in the Energy Sector. The primary aim of this research is to understand the critical dimensions essential for evaluating energy companies’ ESG performances. The research assesses the changes in CEPSA’s financial indicators over the last five years (2018–2022). The report uses DuPont analysis to evaluate CEPSA’s environmental and social responsibility performances. The study examines several financial performance metrics, including return on net assets, profitability, and corporate financing structure changes. The methodology of this study comprehensively assesses CEPSA’s sustainable development trajectory and ESG management system. The analysis reveals that CEPSA has consistently improved its sustainable development capabilities over the last five years by establishing a comprehensive ESG management system. While return on net assets and profitability indicators have shown positive trends, the financing structure has changed significantly. Notably, the proportion of debt financing has increased substantially, and there is a slight decline in the net profit margin. The formal transformation in 2020 further influenced increases in liabilities and fixed assets for CEPSA. The study focuses on CEPSA’s sustained improvements in ESG management and the associated shifts in financial metrics, adding originality to the study and offering a nuanced perspective on the evolving landscape of sustainable practices. The study reveals the financial implications of ESG transformation in the energy sector and offers valuable insights for stakeholders. Moreover, this research contributes to the existing literature by employing the DuPont analysis system to explore the intricate relationship between ESG performance and financial indicators in the energy sector.

Unveiling the Impacts of Corporate Environmental, Social, and Governance Disclosure

Amidst heightened scrutiny of corporate environmental, social, and governance (ESG) practices, this study employs threshold techniques combined with artificial neural networks to examine the impact of ESG disclosure on companies, emphasizing its pivotal role in promoting sustainability. Analyzing data from Taiwan’s 20 industries from 2012 to 2022, it finds that while ESG engagement positively influences financial performance, it also underscores the vital connection between corporate practices and sustainable development. This analysis explores the relationship between carbon emissions, operating expenses, and financial performance in the overall sample and a threshold sample based on a threshold variable. In the overall sample, carbon emissions significantly increase operating expenses, accompanied by other influential variables. Introducing a threshold value of firm size alters the dynamics, showing a positive and more pronounced impact in the threshold sample. The examination of financial performance metrics reveals significant positive associations with carbon emissions, particularly when the threshold is not met or exceeded. Intriguingly, subgroup analysis indicates a negative association between carbon emissions and financial performance within the larger-size subgroup, in stark contrast to a more pronounced positive relationship observed in the smaller-size subgroup. Furthermore, the developed ANN model exhibits robust learning capabilities, underscoring its efficacy in capturing complex patterns within the data. It suggests its potential as a reliable tool for accurately predicting carbon emissions across diverse scenarios, facilitating informed decision-making and policy formulation to mitigate environmental impact.

How to select oil price prediction models — The effect of statistical and financial performance metrics and sentiment scores

Predicting crude oil prices is an important yet challenging forecasting problem due to various influencing quantitative and qualitative factors. To address the growing number of potential prediction models and model parameters to consider during model selection, we highlight the need to systematically compare alternative prediction models and variables while taking the specific context of their application into account. Specifically, we provide a novel perspective on oil price prediction models by comparing a variety of different forecasting models and considering both their statistical and financial performance. In addition to common statistical measures, to assess the usefulness in a practical setting we evaluate the potential financial impact of the predictions in a simulation of a simple trading strategy. We show that the ranking of different approaches depends on the selected evaluation metric and that small differences between models in one evaluation metric can translate into large differences in another metric. For instance, forecasts that are not considered statistically different can lead to substantially different financial performance when the forecasts are used in a trading strategy. Finally, we show that including qualitative information in the prediction models through sentiment analysis can yield both statistical and financial performance improvements.

Do CAMEL and Sustainability Influences a Bank Performance?

Do CAMEL and Sustainability Influences a Bank Performance?

Working Capital Management Aggressiveness and Its Performance: Evidence from Agro-Food Industry in Thailand

The primary objective of this research study was to empirically examine the association between the efficiency of working capital management (WCM), comprising measures such as the Cash Conversion Cycle (CCC), Efficiency Index (EI), Aggressiveness Index (AGGR), and Accounts Receivable Aggressiveness (ARAGGR), and the financial performance (FP) metrics, including Earnings on Assets (EOA) and Return on Assets (ROA). Additionally, this study aimed to compare the efficiency of WCM across various models of publicly listed companies operating in Thailand's Agro & Food Industry. The study utilized a dataset spanning a period of 11 years, from 2007 to 2018, encompassing a sample of 53 enterprises listed within the Agri-business and Food & Beverage sectors. The data was sourced from the SETSMART database, a reputable financial data repository. To investigate the relationship between WCM efficiency and financial performance, the study employed multiple regression analysis. The empirical findings from this research indicate that all the independent variables associated with WCM have a statistically significant impact on financial performance. Notably, the variable AGGR exhibited the most substantial influence on financial performance, as evidenced by its beta coefficient of 0.485. These findings suggest that a model incorporating a combination of performance metrics provides a more comprehensive explanation of the interplay between working capital management and financial performance.

Sustainable prosperity: unravelling the Nordic nexus of ESG, financial performance, and corporate governance

Purpose In the swiftly evolving business landscape, environmental, social and governance (ESG) considerations have gained exceptional prominence, as stakeholders increasingly emphasize accountability and sustainability. This study aims to meticulously probe the intricate interplay between ESG factors, financial performance and the distinct corporate governance landscape that characterizes the Nordic region's crucible of proactive societal and environmental commitment. Design/methodology/approach The authors begin with a data set of 899 Nordic firms across Sweden, Norway, Denmark, Finland and Iceland. Using the Thomson Reuters database, they refine this data set by excluding non-regional headquarters and entities without ESG scores or year-long financial data. This resulted in a focused data set of 1,360 firm-years spanning a decade, forming the foundation for investigating the link between ESG factors and financial performance in Nordic firms. Findings Drawing upon empirical data, the authors systematically dissect the correlation between specified financial ratios and ESG scores on the bedrock of sustainability evaluation. The findings underscore a partially significant, yet robust relationship between ESG endeavors and financial performance metrics. Furthermore, the intricate interplay of corporate governance dimensions’ reveals intriguing correlations with financial indicators among the surveyed Nordic enterprises. However, the findings also reveal an intricate weave that underscores the ESG and financial performance nexus. Research limitations/implications This study addresses stakeholders’ theory and unique positions and contributes to the current discussion on sustainability reporting literature by providing empirical evidence of ESG influences on firm profitability through board characteristics in the specific context of the Nordic region. The sample for this study encompasses firms listed in Nordic countries; thus, the results may not be generalizable to unlisted firms and other countries or regions. Practical implications This study suggests that Nordic firms are advanced in reporting ESG in response to diverse stakeholder demands as part of their regular activities. This study provides valuable insights for diverse stakeholders including researchers and regulatory bodies. Social implications This study provides an understanding of stakeholders about the association of ESG and sustainability practices with firm profitability, which might lead to making the world a better place. Originality/value While illuminating the multifaceted ESG-financial performance nexus, this study reveals its intricate nature. This complexity accentuates the compelling need for further exploration to decode the exact outcomes and myriad factors contributing to the array of correlations observed. Through this comprehensive inquiry, this research advances the understanding and underscores the pivotal role of a focused investigation. This study seeks to harmonize ESG practices and financial performance seamlessly within the Nordic business realm.

Relationship between executive remuneration and performance of South African mining companies

Orientation: Managers are supposed to manage companies to maximise shareholders’ wealth. Instead, there are long-standing perceptions that managers are rent extractors who maximise their own wealth, implying a misalignment between executive remuneration and company performance.Research purpose: The purpose of this study was to determine the existence of a relationship between executive remuneration and the financial performance of South African-listed mining companies.Motivation for the study: Executive remuneration significantly increased over the past five decades relative to company financial performance. The mining sector was selected due to its susceptibility to external factors and shocks leading to volatility in the financial performance of mining companies.Research approach/design and method: This study was a quantitative archival study, using data from 2015 to 2021, by applying the hierarchical linear modelling technique at a 95% confidence level and a 5% significance level.Main findings: The study found a weak to strong relationship between executive remuneration and company financial performance. Furthermore, an analysis of executive remuneration revealed an increase in short-term incentive payments and a decrease in the fixed salary as a proportion of chief executive officer remuneration.Practical/managerial implications: Because the study found a strong link between executive remuneration and earnings-based financial performance metrics, governing bodies should ensure that financial performance metrics include cash flow-based financial metrics as company earnings are highly susceptible to management manipulation.Contribution/value-add: This study contributes to the existing literature on executive remuneration and will be useful to researchers, shareholders, boards of directors, remuneration committees and policymakers.

The effect of financial risks on the performance of Islamic and commercial banks in UAE

Risk management has emerged as a critical element across several economic sectors, with particular significance in the banking industry. The governing bodies of these industries encounter a multitude of threats stemming from the escalation of an unpredictable economic environment, the intricacy of transactions and big data, and several other concealed factors. The primary aim of the present research is to investigate the impact of certain financial risks, including capital risk, liquidity risk, and operational risk, on the financial performance of both commercial and Islamic banks operating within the banking sector of the United Arab Emirates. The study will focus on the time frame spanning from 2015 to 2022. The data used in this study was sourced from the annual reports of banks, which were acquired from the official websites of the Abu Dhabi Securities Exchange and the Dubai stock market. The most prevalent indicators used to assess a bank's financial performance are Return on Assets (ROA) and Return on Equity (ROE). In contrast, the financial risk metrics included three distinct categories of risk: capital risk, liquidity risk, and operational risk. The findings indicate that there is a statistically significant positive relationship between capital risk and both return on assets (ROA) and return on equity (ROE). However, it was observed that neither liquidity risk nor operational risk had a statistically significant impact on either of the financial performance metrics. Moreover, the size of a bank has a notable and favorable impact on both return on assets (ROA) and return on equity (ROE). The ramifications of the study's conclusions have significant importance for regulators, bank management, and investors. IPolicymakers need to prioritize the enhancement of the regulatory framework pertaining to caboutements in order to the financial stability of banks. Bank managers should give priority to the management of capital risk and the size of the bank in order to their financial performance. In order to optimize profits, it is important for investors to carefully evaluate and take into account the many risk considerations associated with their investment selections.JEL:G20, G21

ПОРІВНЯЛЬНИЙ АНАЛІЗ ІНСТРУМЕНТАРІЮ ЕКОНОМІЧНОГО ОЦІНЮВАННЯ ЕФЕКТИВНОСТІ КЕРІВНИХ СИСТЕМ БІЗНЕС-ПРОЦЕСІВ ПІДПРИЄМСТВА

The article addresses the significant and timely subject of evaluating management effectiveness within business processes in today's dynamic business environment. This study aims to scrutinize and compare various economic evaluation methods that assess the effectiveness of management systems of business – processes at legal entity. By employing a comprehensive approach, the authors delve into the examination of existing tools, emphasizing their ability to integrate both financial and non-financial dimensions of management. The methodology adopted in this research includes a systematic analysis of different evaluation instruments, assessing their capabilities to provide a holistic and nuanced understanding of management effectiveness. In the article, comparative methods and information analysis techniques were employed, utilizing data gathered through the monographic method of processing scientific sources related to the research topic. The focus is on identifying methods that encompass a wide range of indicators, from financial performance metrics to qualitative aspects of management, ensuring a balanced and thorough evaluation. The findings of the study reveal a categorization of evaluation methods based on their scope, applicability, and depth of analysis. The authors have meticulously assessed the strengths and weaknesses of each method, offering insights into their suitability for various organizational contexts. This comparative analysis illuminates the complexities and nuances involved in measuring management effectiveness, highlighting the need for a multifaceted approach in this domain. From a practical standpoint, the research contributes significantly to the field by providing guidelines for selecting appropriate evaluation methods that align with the specific needs and objectives of an organization. The insights garnered from this study are instrumental for business leaders and managers in enhancing the decision-making process, facilitating the adoption of strategies that bolster the efficiency and adaptability of management systems. The matrix of comparative analysis of the toolset for economic evaluation of the effectiveness of management systems for business processes in enterprises, developed as a result of scientific research, allows for the selection of an economic evaluation toolset in accordance with the requirements and needs of the evaluation subjects. Ultimately, the article offers a valuable resource for enterprises seeking to optimize their management practices, fostering resilience and competitiveness in the evolving business landscape.

Implementation of Big Data Analysis Technology to Improve Decision Making in the Accounting Field

This article explores the Implementation of Big Data Analysis Technology to Enhance Decision Making in the Accounting Field. With the exponential growth of data, accounting professionals face challenges in processing and extracting meaningful insights. The study delves into the integration of advanced analytics tools within accounting practices to harness the potential of big data.
 The research begins by examining the current landscape of the accounting field and the traditional decision-making processes. It identifies the limitations and inefficiencies in handling vast amounts of financial data. Subsequently, the article elucidates the pivotal role of big data technologies in revolutionizing accounting practices. By employing sophisticated algorithms and data processing techniques, accountants can gain deeper insights into financial trends, risk factors, and performance metrics.
 Moreover, the study investigates real-world implementations of big data analytics in accounting firms. It highlights success stories and challenges faced during the transition, shedding light on the practical implications of adopting such technologies. The article emphasizes the importance of skill development among accounting professionals to effectively navigate and utilize big data tools.
 Furthermore, the impact of big data analysis on decision-making accuracy and efficiency is scrutinized. The findings underscore the potential for improved financial forecasting, fraud detection, and strategic planning. The integration of big data analytics is positioned as a catalyst for more informed and timely decision-making in the dynamic landscape of accounting.
 In conclusion, this research contributes to the evolving discourse on the intersection of big data technology and accounting. It provides valuable insights into the transformative potential of implementing advanced analytics tools, ultimately enhancing decision-making processes within the accounting field.

Pengaruh Kinerja Keuangan, Current Ratio, Debt To Equity Ratio, Working Capital Turnover Terhadap Return On Asset Perusahaan Farmasi Pada Tahun 2019 Sampai Dengan Tahun 2021

With the help of financial ratios, the financial performance of a company reveals its level of success or failure as well as how closely its operations comply with the law. This research aims to determine the effect of financial performance on Return on Assets in pharmaceutical businesses from 2019 to 2021 listed on the Indonesia Stock Exchange during the Covid 19 pandemic. Financial performance includes Current Ratio, Debt to Equity Ratio, and Working Capital Turnover. Every pharmaceutical company registered on the IDX from 2019 to 2021 is used as a research object in this quantitative research. The information used is secondary information collected based on records obtained from the IDX. The sampling technique was Purposive Sampling even though the research subjects were 12 companies listed on the IDX in 2019 and 2020. This research shows that Return on Assets is influenced by the Current Ratio, Debt to Equity Ratio, and Working Capital Turnover, as determined by financial performance metrics. Current Ratio and Debt to Equity Ratio both partially influence Return On Assets which is shown simultaneously at a significance level of 0.000, but working capital turnover has no influence.

The Effect of Corporate Social Responsibility on Financial Outcomes: An Analysis of Selected NSE and BSE Listed Companies (2016-2022)

This study examined the impact of Corporate Social Responsibility (CSR) initiatives on the financial performance of selected companies listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) from 2016-2022. Using financial performance metrics such as Return on Equity (ROE), Return on Assets (ROA), net profit margin, and earnings per share (EPS), the analysis leveraged multiple regression to ascertain correlations. CSR initiatives data were extracted from company CSR reports and disclosures under the Companies Act, 2013. The results indicated a statistically significant relationship between the extent of CSR initiatives and financial outcomes. These findings contribute to our understanding of the potential interplay between CSR activities and financial performance, suggesting that strategic CSR initiatives can positively influence a firm's financial health. This insight can assist businesses in aligning their social responsibility objectives with their financial goals.

Performance metrics in strategy research: A new metric and method for assessing dynamic value

AbstractResearch SummaryWe discuss two research design considerations that jointly influence the choice of financial performance metrics in strategy research: (a) expected temporal payoff of the strategic choice and (b) source of variation invoked in the research design (i.e., within‐firm vs. between‐firm comparisons). We map existing performance metrics commonly used in the research literature to these considerations, and highlight the lack of performance metrics well suited for the combination of strategies with not‐well‐defined temporal payoffs and within‐firm research designs. To remedy this, we introduce a value partitioning methodology that provides a performance metric we call dynamic value. We apply this methodology and demonstrate how it generates additional insights about how cash holdings affect firm performance.Managerial SummaryThis article introduces the value partitioning methodology for interpreting two distinct elements of stock market valuations: (a) the firm's implied future value from continuing operations in a “steady state” and (b) the market's estimate of dynamic future value associated with the firm's strategic choices or competitive positioning. We describe situations where the latter element is useful for measuring strategy performance. We apply this methodology and demonstrate how it generates additional insights about how cash holdings affect firm performance.

THE INFLUENCE OF TECHNOLOGICAL CAPACITY AND FINANCIAL CAPACITY ON PROMOTING FIRM COMPETITIVENESS AND FIRM PERFORMANCE

In today's dynamic economic landscape, businesses continually strive to enhance their competitive edge and overall performance. This study investigates the crucial roles played by technological and financial stability in a company's success and competitiveness. By analyzing a diverse range of businesses across various industries, we aim to illuminate the intricate relationship between these dimensions and their combined impact on a firm's operational effectiveness. Our comprehensive approach employs quantitative financial analysis, technology assessments, and performance metrics, supported by advanced statistical methods. Additionally, qualitative insights from expert interviews enrich our understanding. The results highlight the interdependence between technological and financial strength, underscoring their significance in boosting corporate competitiveness. A firm's capacity to capitalize on growth opportunities and navigate economic challenges is notably influenced by financial factors such as capital accessibility, liquidity, and investment strategies. Similarly, technological capacity, encompassing digital infrastructure and innovation adoption, drives operational efficiency and market distinctiveness. This research unveils the synergistic effects of harnessing both technology and financial resources, enabling strategic resource allocation that empowers businesses to sustain competitiveness, foster innovation, and adapt to evolving market dynamics. These insights hold profound implications for both theoretical research and practical management, emphasizing the need to balance investments in technical and financial capabilities. They provide valuable guidance for researchers, policymakers, and business leaders grappling with an increasingly competitive landscape. Ultimately, this study advances our comprehension of the factors shaping firm success and equips businesses with a roadmap for surmounting challenges and seizing opportunities in today's dynamic market.