Organizational Financial Performance Research Articles

GOVERNANÇA CORPORATIVA PARA A GESTÃO FINANCEIRA

The objective of this work is to highlight the importance of corporate governance for the financial management of business organizations. In this sense, a bibliographic research methodology was chosen. Corporate governance fosters the credibility of organizations by providing financial information that determines the decision-making processes of internal and external stakeholders. In this case, the financial manager who practices governance must demonstrate characteristics and competencies focused on ethics and transparency so that the organization's financial performance is achieved through a systemic vision correlated with the internal and external sectors of the companies, permeated by both good governance practices and the increase of investment capital. Thus, corporate governance plays an important role in contributing to organizations by minimizing risks, reducing indebtedness, and increasing the market value of companies that implement it, as it is seen as a factor of respect for those who invest their capital in a business aiming for the profitability of their investment.

The Mediation Effect of Customer Satisfaction in the Relationship between CSR and Financial Performance: An Empirical Study in Large Companies in Serbia

Although corporate social responsibility (CSR) can be examined from the point of view of the fundamental philosophy of business and society, many companies focus solely on profit. The main goal of this research is the investigation of the relationship between CSR and organizational financial performance, and the role of customer satisfaction in the proposed relationship. To investigate the proposed relationships, PLS–SEM analysis was performed using the statistical software Smart PLS. The sample used for this study consists of 165 large companies that operate in the Republic of Serbia, each with more than 250 employees (large organizations). The obtained results showed that in companies in Serbia, there is a positive and statistically significant relationship between CSR and customer satisfaction and a positive but statistically insignificant relationship between CSR and financial performance. Regarding the mediating role of customer satisfaction in explaining the relationship between CSR and financial performance, a positive full mediation relationship was found. Theoretical and managerial implications are also provided.

Exploring the Synergistic Effects of Tax Policies, HRM Practices, and Strategic Marketing on Organizational Financial Performance: A SEM-PLS Analysis

Exploring the Synergistic Effects of Tax Policies, HRM Practices, and Strategic Marketing on Organizational Financial Performance: A SEM-PLS Analysis

Effects of innovation on the financial performance of organizations: bibliometric indicators and thematic trends

El objetivo principal de este artículo es analizar indicadores bibliométricos sobre artículos científicos de alto impacto que abordan temáticas relacionadas con los efectos de la innovación en el desempeño financiero de las organizaciones. La recolección de información se realizó por medio de la base de datos Scopus, mientras que para el análisis y estimación de indicadores se utilizaron las herramientas Bibliometrix y VosViewer. Los resultados obtenidos permiten identificar las principales fuentes de publicación, el mapa de coocurrencia sobre palabras clave, la ley de Bradford para la segmentación de fuentes, las tendencias temáticas y el diagrama de Sankey sobre variables principales. Este estudio permite concluir que elementos como la innovación verde y la sostenibilidad ambiental emergen como temáticas principales en la investigación sobre el efecto de procesos de innovación sobre el desempeño financiero.

Analysis of ICT Adoption on the Financial Performance of Kitui Teachers Sacco

ICT adoption refers to the utilization of technology in gathering, processing and using knowledge within the organization. The financial performance of SACCOs largely depends on the strategic actions undertaken by the management. Despite this, the performance of SACCOs has always been fraught with numerous management challenges as evidenced by the chaotic scenes at most annual general meetings. Maintaining a sustainable growth of earnings for SACCOs has become a universal challenge. This study seeks to analyze how ICT adoption affects the financial performance of KTS. The study employed a mixed methodology combining quantitative and qualitative approach. The target population comprised 12 Board of directors, 5 chief managers, 9 departmental heads, 8 branch managers and 12 assistant managers. Primary data was collected using questionnaires. Their validity and reliability was achieved through the use of pilot test. The data of the pilot test were not incorporated in the analyses. The quantitative data was analyzed using descriptive statistics and presented through the use frequencies and percentages. SPPS version 24 was used to carry out inferential statistics through the Pearson‘s Correlation analysis. The results of the descriptive statistics have been presented using frequency tables. The results of the analysis indicate ICT adoption had a positive and statistically significant influence on the financial performance of KTS (β=.0.287, P=0.05). The descriptive statistics had an overall average mean and SD of 3.72 and 0.495 respectively. The finding indicated that ICT adoption had a significant influence on the financial performance of KTS. The study concluded that ICT adoption play a vital role in the financial performance of organizations

Customer lifetime value (CLV) insights for strategic marketing success and its impact on organizational financial performance

Customer lifetime value (CLV) insights for strategic marketing success and its impact on organizational financial performance

Risk Management Techniques on Financial Performance of State-Owned Sugar Companies in Kenya

Financial performance of sugar companies in Kenya is generally poor and has been fluctuating over a long period. The state-owned sugar companies are worse compared to the privately owned companies. The sugar sector has been orbiting around sugar scarcity, inefficiencies, failure to pay farmers, failure to renovate and modernize production unit, failure to battle with imported sugar, recurrent losses and political interference. The main objective of this study was to evaluate the effect of risk management techniques on financial performance of state-owned sugar companies in Kenya. The specific objectives guiding the study were; to establish the effect of risk avoidance on financial performance of state-owned sugar companies in Kenya, and to assess the effect of risk acceptance on financial performance of state-owned sugar companies in Kenya. The study was anchored on the risk management theory, model risk management and the theory of financial control. The study adopted a descriptive research design with a target population of fifty four respondents being employees from the six state-owned sugar companies in Kenya. Questionnaires were the main data collection tool. Data was analyzed with the help of statistical package for social science version 28, Analysis of Variances, Correlation and regression analysis tools were used to establish the relationship between the variables. The findings of the study revealed a statistically significant regression effect and indicative of accomplished prediction of financial performance of state-owned sugar factories through the F-calculated value which showed that the model was significant. Risk avoidance explained 53.9% of financial performance and risk acceptance explained 61.9% of financial performance of state-owned sugar factories in western Kenya. The findings of the study will provide an insight to finance practitioners on the risk management techniques and their relationship with organizational financial performance as well as contributing to the scholarly literature on risk management techniques in other sectors of the economy. Keywords: Risk, Risk Avoidance, Risk Acceptance, Financial Performance, Risk management Techniques

The Effect of Amortizing the Value of Human Resource Cost on the Financial Performance of Nigeria Banks

This study looked into how Nigerian banks' financial performance was affected by depreciating their human resource costs. The research design used in this study is the survey research design. Reliability and validity of the data sources were established by the questionnaire. The data were analyzed using the descriptive and Regression statistical technique. It was discovered that human resources had a major influence (Adj R2 = 0. 858, F (9.064)). The findings showed that financial performance benefited from the expense of human resource training. FP was significantly impacted by HRTC (β = 0.3.86, t = - 1.586, p< 0.05), and FP was significantly impacted by HRAC (β = 0.911, t = 4.143, p<0.05). According to the study, using acquisition costs for human resources has a favorable effect on an organization's financial performance. The management boards of the banks under examination are advised by the study to work toward implementing the policy of classifying human resource costs as assets. To guarantee that their employees have the technical know-how and understanding to perform their tasks more efficiently, banks must plan regular training sessions for their HR department. Since the organization's most significant asset is its human resources, the Central Bank of Nigeria ought to ensure that the funds allocated to them are appropriately declared and acknowledged as assets in bank annual reports. By doing this, the genuine financial performance of the institutions will be more accurately depicted.

Evaluating the Relationship between Corporate Social Responsibility Incentives and Financial Outcomes of Corporations Operating in the GCC Region

Corporate Social Responsibility (CSR) is a concept that has gained traction in strategic management over the years, and it is continuously being cited as important for both the business and the business shareholders. Although there is much research examining the general CSR-CFP relationship, there is very little, if any, research that investigates the firms operating in GCC countries, which is the main objective of this study. One of the new methods used to measure Corporate Social Responsibility engagement in any organisation is the ESG rating. The ESG rating measures the Environmental, Social and Governance (ESG) dimensions of Corporative Social Responsibility engagement. This research uses the stakeholder theory framework, together with the agency theory framework to find the impact that CSR has on the financial performance of organisations. In the research, we used annual data of ESG and financial ratios of 98 publicly listed firms operating in the Gulf Cooperation Council, from 2008 to 2018. Regression analysis was used to test the impact of ESG scores on the financial performance of organisations. According to the results, the Environmental, Social, and Governance dimensions have a significant impact on the financial performance of organisations operating in the Gulf Cooperation Council. This study contributes to the body of knowledge on the relationship between CSR performance and Financial Performance.

Meeting Stakeholder Needs: Who Should Managers Pay Close Attention To? Evidence from Listed Chinese Manufacturing Companies

Meeting Stakeholder Needs: Who Should Managers Pay Close Attention To? Evidence from Listed Chinese Manufacturing Companies

Study on Impact of Audit Committee on Organization Financial Performance

Abstract: As of late, the job of review panels inside associations has acquired expanding consideration because of their urgent job in guaranteeing straightforwardness, responsibility, and powerful administration. This study means to investigate and examine the effect of review advisory groups on hierarchical execution, zeroing in on their capabilities, synthesis, and viability.

Influence of Innovation Approach on Competitive Structure of Tier 1 Commercial Banks in Kenya

In today's volatile business landscape, companies must continuously innovate to remain competitive. Innovation, encompassing the creation and implementation of new concepts across products, services, and technologies, is essential for meeting evolving market demands. Both radical and incremental innovation contribute to organizational financial performance (Abiodun, 2017). However, traditional banks often exhibit technological inertia, hindering their ability to adopt new methods efficiently. This reluctance presents an opportunity for challenger banks to pioneer technological advancements, diversify risk management strategies, and optimize resource utilization, leveraging instruments like asset securitization. This study investigates the impact of innovation approaches on the competitive structure of Tier 1 Commercial Banks in Kenya. Employing descriptive and correlational research designs, the study surveyed 182 respondents selected via stratified random sampling from a target population of 334 individuals across Tier 1 Commercial Banks. Quantitative data analysis utilized descriptive statistics, correlation, and regression analysis with SPSS version 26. Findings indicate a positive correlation between innovation and competitive structure, underscoring innovation's significance in sustaining competitive advantage. Technology adoption, including mobile banking and remote service delivery, also enhances competitive structure. Furthermore, the study highlights the contribution of risk diversification through new financial instruments and incremental innovations to financial success. Overall, the research emphasizes the critical role of innovation and technology in driving competitive advantage within the banking industry. It recommends that top management continuously expand their offerings of innovative products to remain competitive.

The role of corporate environmental ethics in shaping environmental management accounting adoption under the institutional theory

This study aims to investigate the complex association between institutional pressure, adoption of environmental management accounting (EMA), and financial performance, with corporate environmental ethics as a moderating component. It explains why and how firms adopt EMA in response to institutional demand to factor environmental factors into their strategic decision-making processes. Quantitative information is gathered using a structured questionnaire from 256 manufacturing companies’ environmental managers and executives who monitor environmental practices and policies and decision-makers who shape business environmental ethics and strategy in the Indian state of Karnataka. Data are analyzed using SmartPLS 4, and PLS-SEM tests the hypotheses. The results show that coercive pressure (β = 0.244, p = 0.000), mimetic pressure (β = 0.221, p = 0.000), and normative pressure (β = 0.209, p = 0.000) have a major role in determining the rate of EMA adoption. It is further identified that EMA adoption (β = 0.217, p = 0.000) positively influences the organization's financial performance. Furthermore, EMA adoption mediates the relationship between coercive pressure (β = 0.053, p = 0.000), normative pressure (β = 0.045, p = 0.000), mimetic pressure (β = 0.048, p = 0.000), and firm’s financial performance. Coercive pressure is associated with higher EMA adoption, although the impact of this link is moderated by corporate environmental ethics (β = 0.069, p = 0.000).

How does big data affect organizational financial performance in turbulent markets? The role of customer-linking and selling capabilities

The information age provides vast opportunities for organizations to improve their efficiencies by relying on big data-AI empowered analytics (BDA). The purpose of this study is to address the critical question of how BDA-fit affects organizational financial performance, taking into consideration differences between markets and customer change caused by technology turbulence. Using data collected at the firm level and building on Task-Technology Fit Theory and Dynamic Capabilities Theory, empirical results indicate that BDA-fit is important to drive organizational financial performance through the development of customer-linking and selling capabilities. These results vary across markets, with BDA-fit having stronger effects on selling capabilities and organizational financial performance in highly turbulent markets. BDA allows organizations to upturn challenges and hindrances caused by market turbulence into opportunities to increase sales revenues. Based on the findings, theoretical contributions and managerial implications are provided.

Green Emerging Digital Technologies, Green Supply Chains, and the Performance of Environmentally Friendly Firms: The Underpinning Role of Human Resources

Anchored in the resource-based view, this research analyzes the relationships between green information systems (Green IS), green human resource management (GHRM), and green supply chains (GSCM). It then examines the effects of these relationships on the environmental and financial performance of organizations. To meet the proposed objectives, a survey was carried out with 211 Brazilian companies, with the data analysis stage employing the structural equation modeling technique. The main findings include that green information systems play an important role in supporting green supply chain practices, and indirectly contribute to environmental and financial performance by facilitating organizational processes. Furthermore, our results reveal that human resources partially mediate the relationship between information systems and green supply chains, through employee engagement in environmental management and rewards based on environmental performance. This study also brings a number of theoretical and practical contributions. In terms of theory, it highlights a previously unexplored relationship between the prevailing concepts of Green IS, GSCM, and GHRM, and their impacts on firm performance, which enriches the body of knowledge in the IS, HR, and engineering management fields. For practitioners, this study reveals how they can strategically articulate HR, IS, and supply chain functions to support sustainability strategies. The findings clarify that blending technical (IS) and soft (HR) skills is pivotal to developing valuable GSCM capabilities to support and improve companies’ performance.

The Impact of Corporate Social Responsibility on Financial Performance in a Selected Medium-Sized Clothing Manufacturing Organization in South Africa

Corporate Social responsibilities (CSR) is an established idea that urges corporations to incorporate environmental and social responsibilities into their operations. It enables businesses to be socially responsible to stakeholders and the public. Small and medium-sized enterprises (SMEs) have received international recognition for their contributions to social and economic development. This study investigates the impact of CSR on financial performance at a medium-sized clothing manufacturing company in the eThekwini District Municipality of KwaZulu Natal, South Africa. The study was designed to be conclusive. It employs a quantitative approach, examining the experiences of an organization that has implemented CSR. The study's objective was met by gathering pre- and post-quarterly data on profitability and production costs. The data was analysed using the Ordinary Least Squares (OLS) model and the Statistical Package for the Social Sciences (SPSS). The findings show that CSR can boost financial performance by minimising business-related risks and compliance expenses, which leads to increased profitability and lower production costs. Any rise in profitability boosts the organization's financial performance, while any drop in production costs improves the company's financial performance. This study identifies the strengths and weaknesses of CSR in relation to financial performance in the selected medium-sized manufacturing business in South Africa.

Does Corporate Social Responsibility Affect Organizational Financial Performance in Nigeria?

The financial performance of multinational firms is usually affected by the business environment in which they operate. This environment brings challenges especially socio-culturally related factors. This study aims at examining the effect of corporate social responsibilities on organizational financial performance in Nigeria. The study adopts ex post facto research design and purposive sampling methods. 30 quoted firms actively trading between 2018 and 2022 are selected and data were collected from their financial statements. Panel least square was used as method of data analysis. The t-test was used as test of hypotheses and was measured against a standard z-score value of 1.96. The results of the study show that corporate social responsibility positively affect organizational financial performance in Nigeria. The study therefore recommends that multinational organizations should make efforts to create a close relationship with its immediate environment by investing in its environment and use strong corporate governance policy to strengthen continuity.

SOFT SKILLS AS A KEY IN THE TECHNICAL ASSISTANCE SECTOR

This study presents a service model based on socio-emotional skills for the after-sales department of a specific organization. The research, conducted over a year, aimed to demonstrate the importance of these skills in creating a supportive and motivating work environment and their direct impact on generating income and profits. The model was implemented in the technical assistance sector of a company located in the northern plateau of Santa Catarina, serving as a case study. To support the theoretical framework, a Systematic Bibliographic Review (RBS) was conducted between 2017 and 2022, focusing on the most relevant themes related to the study. The research involved various activities, including daily practices of active listening to provide comfort to customers in need of technical assistance. Additionally, specialized lectures on communication were organized to address theoretical aspects of socio-emotional skills. The results of the study were measured through customer feedback and cost savings. The implementation of the model led to increased customer satisfaction and more efficient resource allocation. Overall, this research highlights the significance of socio-emotional skills in improving both the work environment and the financial performance of organizations

When commitment isn’t enough: The cross-cultural interactive effects of commitment-inducement and compliance-enforcement on performance

The current study contributes to the ongoing discourse in the extant literature concerning the performance effects of the commitment-inducement and the compliance-enforcement approaches to the management of people and work. We expand on two research studies conducted in China to assess if the finding that commitment-inducement and compliance-enforcement result in higher organization financial and operational performance generalizes to corporate social responsibility performance and to countries and cultures across the globe. Using the current study’s large global multi-source sample, our findings illuminate that compliance-enforcement explained significant incremental variance in both organization financial and operational performance and organization corporate social responsibility performance beyond that of the commitment-inducement approach alone. Moreover, the highest levels of both performance outcomes were obtained by organizations that simultaneously used both commitment-inducement and compliance-enforcement; that is, hybrid governance. Compliance-enforcement was also found to have a more substantive relative effect on organization financial and operational performance while commitment-inducement was found to have a more substantive relative effect on organization corporate social responsibility performance. Furthermore, as hypothesized, at the between country-level, the relationship between the commitment-inducement approach of managing people and work and corporate social responsibility performance was found to be more negative both for a high individualism than a low individualism culture and for a high uncertainty avoidance than a low uncertainty avoidance culture, respectively. Whereas, the relationship between the compliance-enforcement approach and corporate social responsibility performance was found to be more positive for a high uncertainty avoidance than a low uncertainty avoidance culture. Finally, as hypothesized, at the between country-level, commitment-inducement and compliance-enforcement were found to be substitutes and have a negative synergistic effect on corporate social responsibility performance. Implications, limitations, and avenues for future research are discussed.

Effect of Procurement Practices and Performance of Non-governmental Organizations in Rwanda a Case of SOS (Save Our Souls) Children’s Villages

The general objective of this study was to assess the effect of procurement practices on the performance of NGOs in Rwanda, a case study of SOS Children’s Villages. The study was guided by the following specific objectives: To examine effect of procurement planning and performance of SOS Children’s Villages, Rwanda, to assess the effect of vendor selection and performance of SOS Children’s Villages, Rwanda, to assess the effect of procurement negotiations and performance of SOS Children’s Villages, Rwanda, to examine the effect of procurement contract control and performance of SOS Children’s Villages, Rwanda. The results of this study provided information to the non-governmental organization how procurement practices optimize their performance since effective procurement practices is tremendous practices making organization to achieve on objective. The results of this research are beneficial to the managers of the procurement department in the Non-governmental organization as this study provided insight on how procurement practices contribute to the institution’s performance. This study applied descriptive design to get results related to the study, the target population as well sample size was 64 respondents. Researcher utilized census as sampling technique. The source of data was primary and secondary methods. Questionnaires were adopted to collect primary data and documentary review applied for collecting secondary data. The data was obtained using descriptive statistical analysis with use of frequency, percentage, mean and standard deviation, and inferential statistics by the use of Pearson correlation (r) and multiple linear regression analysis. The presentation of results was presented using tables, the pilot test was determined to ensure the validity and reliability of instrument used in data collection. After data collection the following results were observed, basing on the Pearson correlation, procurement planning influences performance of Save Our Souls children’s villages r= 0.835 while vendor selection influence performance of Save Our Souls children’ villages at correlation coefficient of .812. On the other hand, procurement negotiations influences performance of SOS Children’s Villages in Rwanda at r=0.764 and procurement contract control effects performance of Save Our Souls children’s village at .79, the study concluded that all variables considered by researcher including procurement planning, vendor selection, procurement negotiation and procurement contract controls contribute to the performance of Save Our Souls children’s villages in different corners. The study recommended that that effective control of supplied product is needed to ensure the suppliers are supplied the quality product as planned by management. The future researchers are recommended to make research about the contribution of effective procurement practices on financial performance of organization in Rwanda using government institutions.