Organizational Financial Performance Research Articles

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.

The Impact of Production and Operations Management Practices in Improving Organizational Performance: The Mediating Role of Supply Chain Integration

While prior research has consistently established a significant link between production and operations management (POM) practices and organizational financial performance (OFP) across various contexts, the mechanisms driving this connection remain unclear. This study addresses this gap by examining the mediating role of supply chain management (SCM) integration in the relationship between POM practices and OFP within manufacturing firms. Drawing on established theories and concepts such as the resource-based view (RBV) of firm and operation strategies, this study employed a quantitative research design. Survey data were collected from 209 managers in Jordanian manufacturing firms and analyzed using structural equation modeling (SEM). The results confirmed a positive and significant association between POM practices and both SCM integration and OFP. Furthermore, SCM integration partially mediated the impact of POM practices on OFP, thereby underscoring its role in transmitting positive effects to financial performance. This research contributes to the field by integrating POM practices with SCM integration and by elucidating the mechanisms through which these practices influence financial performance in Jordanian manufacturing firms. Through this, our understanding of these relationships for practitioners and researchers alike is enhanced.

Impact of Social Media Usage on Financial and Non-Financial Performance of Organization through Social CRM

Social media usage improves Social Customer Relationship Management (CRM) is highly important for modern firms to create value for business after the rapid growth of technology adoption by customers. Studies on social media and organizational performance are limited so the present study has to extend this topic for a brief analysis of this domain. Hence, the current study aims to investigate further how social media usage benefits both financial and non-financial aspects of organizational performance through social CRM. A quantitative cross-sectional research design was carried out to collect the primary information using a structured questionnaire using two separate surveys; one was filled out by the top management of the organizations while the other was filled out by the respective customer of the organizations from different sectors of Pakistan which were also active on Facebook and lastly each 209 participants in both surveys were selected for data analysis. AMOS and Smart PLS were employed to test this proposed model. All findings of this study are found significantly positive and the social CRM acts as a positive mediator between the direct association of social media usage and organizational performance. Furthermore, the present study offers marketers and businessmen to explain the linkage of CRM with advancing social media technologies to improve organizational performance either financial or non-financial performance.

Comparative Analysis of Pre and Post merger: Effect on the Financial Performance of Microfinance Institution in Nepal

There are no specific studies available on the impact of mergers and acquisitions on the financial performance of Microfinance Institutions in Nepal. 
 Other studies available on the impact of funds and investments on the financial performance of organizations However, these studies are not directly related to the impact of mergers and acquisitions on the financial performance of Microfinance Institutions in Nepal. 
 This study aims to analyze the effect of pre and post-merger financial performance of Microfinance Institutions (MFIs) in Nepal. The study has taken four merged Microfinance Institutions of Nepal as the sample. The study has used paired sample t-tests to analyze the data. The findings of the study showed that after the merger, the financial performance of the Microfinance Institutions in Nepal has not improved. The study found that there were no changes in the Earning per Share, Return on Equity, Return on Asset, Net profit Margin, Current Ratio, Net interest Margin and Price to Earnings Ratio. However, the study has found out that the Debt to Equity ratio has increased after the merger process. There are several studies available on the impact of mergers and acquisitions on the financial performance of banks in Nepal.

Involving HRM Indicators on Firm Financial Performance: Correlation Study Between Social Factors, Work Environment, and Job Satisfaction

The purpose of this paper is to explore the relationship between factors such as job satisfaction, social factors, and work environment, and their impact on an organization's financial performance. This paper is based on a review of existing literature on the relationship between employee happiness and satisfaction and financial performance. Various theories, such as Expectancy Theory, Locke and Latham's Job Satisfaction Theory, and Fredrick Herzberg's Job Satisfaction Theory, are used to support our findings and analyze based quantitative with SMART-PLS to answer the hypothesis. The study results show that Job satisfaction has a positive impact on financial performance. Increased job satisfaction can reduce employee turnover, increase productivity, and reduce recruitment and training costs. Social factors, such as a positive organizational culture, effective communication, social support, and team diversity, also affect financial performance by creating a more dedicated and motivated workforce. Social factors also have a positive and significant effect on job satisfaction. Positive relationships with coworkers and superiors, good communication, and social support contribute to higher job satisfaction. A good work environment, including a comfortable physical environment, a positive work atmosphere, healthy employee relations, supportive company policies, and a positive work culture, contributes to employee motivation and company performance. This paper highlights the importance of factors related to employee happiness and satisfaction in achieving better financial performance. It provides managers with insights on how to improve employee satisfaction, build a positive organizational culture, improve communication, and create a supportive work environment. The findings also contribute to the existing organizational and management theories by emphasizing the significance of psychological and social factors in predicting financial performance.

The influence of managerial competence on the relationship between cost accounting systems and financial performance: A quantitative study of social welfare organizations

This study was conducted to examine how the abilities of business managers affect the relationship between cost accounting systems and financial performance. The data has been obtained from social welfare organizations. Multiple regression analysis without an interaction term was first conducted as the base model followed by hierarchical multiple regression analysis to verify the increase in explanatory power by adding an interaction term. All independent variables, adjustment variables and control variables except dummy variables were centralized to facilitate the interpretation of the interaction term. A regression diagnosis was conducted after the exclusion of outliers. The statistical analysis environment R was used for the analysis. The findings of the study suggest that among the four functionalities of cost accounting systems, detailed cost ascertainment and reporting frequency may affect organizational performance through interactions with the abilities of business managers. This study may be viewed as a first step in examining the effects of the interaction between the functionality of cost accounting systems and the abilities of business managers on the financial performance of organizations.

Work-life balance policies and organizational financial performance: a scoping review

PurposeWork-life balance (WLB) policies have become a popular topic in both academic literature and organizations. However, previous studies in this area have provided mixed results, and the impact of WLB policies on various indicators of organizational financial performance remains unclear. There has been no comprehensive review that synthesizes the current state of knowledge and indicates future research directions. This review addresses this gap and provides a systematic review of published papers investigating the relationship between WLB policies and organizational financial performance.Design/methodology/approachThe review follows the PRISMA-ScR guidelines for scoping reviews. An analysis of 421 relevant records in Web of Science and Scopus databases identified 22 original empirical studies that focused on the relationship between WLB policies and financial performance at the level of the organization.FindingsMost reviewed studies indicated a weak positive relationship between WLB policies and financial performance. There was the strongest support for the effectiveness of flexible working hours and job sharing, while there was mixed support for the policy of working from home. There were a higher proportion of positive results in studies conducted in Western countries compared to Asian countries, which indicates a potential moderating effect of culture. This review also describes the primary limitations of previous studies, namely, low test power and insufficient evidence about causality.Originality/valueThis review summarizes the growing body of quantitative research on the relationship between WLB policies and organizational financial performance. It presents a model that includes moderators and mediators of this relationship and indicates potentially fruitful areas for future research.

Corporate reputation and shareholder investment: a study of Egypt's tourism listed companies

PurposeThis study aims to investigate the impact of corporate reputation on investors and whether it influences company investment returns. While previous research has focused on specific components of reputation, neglected risks associated with the analyzed firms, and relied on accounting performance metrics, this study takes into account both return and risk factors to examine how they affect corporate reputation and investment decision-making.Design/methodology/approachData were collected from 300 active investors in the Egyptian exchange stock market, and the seven-paradigm RepTrak model was used to assess reputation structures and expected return and risk. Structural equation modeling was employed to confirm the theories.FindingsThe findings highlight that investors demonstrate a primary focus on the financial performance of organizations when making stock market decisions, while also considering non-financial factors such as products, innovation, citizenship, governance, and emotional appeal. Their prioritization of investment returns and risks takes precedence over evaluating workplace practices.Originality/valueThis study's originality lies in its incorporation of return and risk measurements as crucial investment choice variables, contributing to the financial markets’ research on corporate reputation. By managing their reputation, corporations can enhance investors’ demand for their stocks and optimize their investment opportunities.

Aspects Regarding the Influence of Recent Crises on the Performance of Tourism Companies - Empirical Evidence

The COVID-19 pandemic has triggered an economic crisis with a global impact, affecting entities from many fields of activity, but particularly those from the production, transport, tourism, technological services sectors (Donthu & Gustafsson, 2020). Most countries have responded to this pandemic with travel bans, restrictions, and a series of health regulations aimed at managing the pandemic situation (Jones & Nguyen, 2021). The study aims to explore how and to what extent the capital structure and other financial characteristics of tourism organizations (one of the most affected sectors) influenced their financial performance during the 2007- 2008 global financial crisis and the COVID-19 pandemic. In this sense, a sample represented by 15 organizations in the field of tourism, listed on the Bucharest Stock Exchange (BSE), was subjected to analysis, the analysis period being 2007-2021. Ten independent variables were included in the study (cash ratio, current ratio, financial stability coefficient, debt-to-assets ratio, degree of coverage, total assets turnover, current assets turnover, accounts receivables turnover, cost to income ratio, and gross profit margin) from 2007-2021, for the evaluation of the capital structure and other financial characteristics of tourism organizations. After processing the data, it was found that the financial performance of organizations in the field of tourism is significantly influenced by the indicators of total asset turnover, debt-to-assets ratio, cash ratio, and financial stability coefficient.

Digital Revolution and Digitization Process to Promote AIS as a Vector of Financial Performance

Nowadays, many businesses recognize the importance of digitization as a strategic advantage to maintain competitiveness. As a result, current research aims to investigate three significant factors that influence digital transformation: digital innovation (DI), digital orientation (DO), and the accounting information system (AIS). These factors are supposed to impact the financial success and performance of firms. The objective of this study is to examine the positive association between digital orientation and financial performance (FP) and to explore how the AIS mediates this relationship. Additionally, this paper investigates the moderating role of digital innovation in the relationship between digital orientation and financial performance. To collect data, a quantitative method was employed using a random sampling technique. Data were collected via a questionnaire survey from small and medium-sized enterprises (SMEs) in China, with a sample size of 550. Structural equation modeling (SEM) and a bootstrapping technique with 5000 iterations were used to test the study hypotheses. The findings of this study indicate a positive link between digital orientation and the financial performance of organizations. Furthermore, the results confirm that the AIS acts as a mediator between digital orientation and financial performance. The outcomes also demonstrate that digital innovation plays a moderating role in the relationship between DO and financial performance. This paper contributes to the existing literature on digital transformation by providing a deeper understanding of the aforementioned antecedents of the digital revolution (DO, AIS, and financial performance) and how they should be integrated within digitalization settings to achieve financial performance.

Analisis Laporan Arus Kas Untuk Menilai Kinerja Keuangan Pada Hybe Corporation

One of the company's asset accounts, cash plays an important role in financing the company's operations. The actual cash position in the company's operational activities is disclosed in the statement of cash flows. Cash flow ratios can be used to assess how an organization's financial performance has changed from year to year. The purpose of this research is to ascertain how the financial performance of HYBE CORPORATION can be evaluated using a cash flow statement using a quantitative descriptive approach. The study findings show that HYBE CORPORATION's financial performance is not stable. If we look at it globally, the cause of this is due to Covid-19 from 2020–2021, and research data also shows an increase in 2022, as seen from HYBE CORPORATION's financial performance based on research on cash flow reports using the cash flow ratio during the analysis period.

The importance of achieving a 360-degree view of patient identity: A survey of US healthcare providers

Objective: To describe the perceived importance among healthcare leaders of accurate patient identity in meeting organizational needs and objectives for improved clinical, operational and financial performance.Methods: Survey of 100 US healthcare executives evaluated priorities and needs of care organizations as impacted by the imperative to ensure accurate patient identity in care delivery, operations, and meeting strategic objectives.Results: Healthcare executives (72%) reported concern that inaccurate patient identity data reduces care quality/safety and healthcare organization financial performance. Only 14% were highly or extremely satisfied with the accuracy level of their existing patient identity management solutions. Inability to know “who is who” is perceived as increasing risk of patient harm and inferior care outcomes, low patient satisfaction, impeded operational efficiency and financial performance, and a key challenge to achieving strategic initiatives such as digital transformation and effective population health management. Accuracy in patient identity was linked to nearly all strategic priorities, with 60% considering it vital to every aspect of organizational performance, and 64% stating it can improve operational efficiency. Eighty-eight percent regarded accurate patient identity as essential to improving patient experience, care management (75%), and establishing an effective digital front door (73%). Majorities recognized the importance of accurate patient identity to organizational growth initiatives and digital transformation.Conclusions: Although patient identity impacts most aspects of healthcare operations, leadership of most healthcare organizations surveyed understood the criticality of accurate patient identity in optimizing organizational performance, but lacked confidence in their ability to achieve a complete an accurate 360-degree view of patients.

A Perceptual Approach to the Impact of CSR on Organizational Financial Performance.

Corporate social responsibility (CSR) is a progressively significant issue for organizations and governments. To benefit from a good reputation that reflects on organizational performance, organizations must ensure the balance between stakeholders' needs. This paper studies the direct and indirect effects of CSR on organizational financial performance as perceived by employees of organizations. The investigation used structural equation modeling to evaluate and describe the nature of the relationship between these two variables. The empirical study uses a perceptual approach, evaluating the perceptions of the closest stakeholders (employees). Data on the perceptions of 431 employees in Romanian organizations were collected following a questionnaire-based survey. The results indicate a strong effect of social responsibility on both direct and mediated organizational financial performance. The relationships established with the stakeholders ultimately affect organizational financial performance through variables such as the attraction and retention of employees, the attraction and loyalty of customers, more accessible access to capital, and the organization's reputation.

Corporate Sustainability by Combating Bribery: The Role of an Organisation Culture and Its Impact on the Organisation’s Performance

There is an increasing trend in bribery practices among employees (corporate bribery), especially from emerging economies, where developed countries, including the USA, have enormous interests in various aspects of local and international trade. Therefore, this study aims to examine the influence of organisations’ culture and outcome orientation, as well as the stability culture dimensions of Organisation Culture Profile (OCP), in order to combat corporate bribery practices, as an aspect of corporate sustainability practices, and their subsequent impact on both organisational financial and non-financial performance. The study surveyed mid-to-top level managers of a total of 201 organisations from Bangladesh. The survey data were used to develop a structural equation model (SEM) by utilising the AMOS (26th version) software, and thus tested the developed hypotheses on the study variables. The findings provide evidence of the positive influence of the two dimensions (outcome orientation and stability) of organisations’ culture in combating bribery practices within organisations. The findings highlight the positive impact of combating bribery practices on both organisations’ financial and non-financial performance. Our empirical findings contribute to the existing limited bribery-related corporate sustainability literature, with the goal of achieving suitable organisation culture in order to minimise unethical business practices, specifically bribery practices. The findings provide practical implications for practitioners and policymakers due to the discovery of the importance of having congenial corporate culture, in order to promote and enhance corporate sustainability practices by reducing the likelihood of poor practices by employees, i.e., taking or offering bribes to business partners.

An examination of the relationship between financial performance and safety factors in the heavy trucking industry

Heavy trucks disproportionately contribute to road fatalities and injuries worldwide. Safety efforts to reduce these undesired outcomes have mostly focused on regulating overt driver behaviors such as speeding and fatigue, ignoring underlying systemic issues such as the financial performance of the company. Nevertheless, there is evidence that financial pressures may lead organizations to reduce safety investments and adopt payment policies that implicitly pressure drivers to drive faster and work longer hours. This paper examines the relationships between financial performance of organizations and crash influential factors, including driver employment type, driver payment method, driver skills level, type of load carried, technology adoption and vehicle acquisition. Data collected from an online survey of 69 Australian heavy trucking organizations was analyzed using the Correspondence Analysis methodology. Results showed a positive association between good financial performance and the adoption of safety-promoting policies, such as having skilled drivers, buying new vehicles or vehicles highly equipped with safety technologies. This implies that organizations’ financial performance in the trucking industry can be considered a safety performance indicator with a poor financial performance implying a risk of reducing safety investments. Results also showed that good financial performance is associated with carrying livestock, refrigerated or dangerous freight, selecting employee drivers, and paying drivers based on performance. Findings of this study have strong potential to improve truck safety by informing policy development, particularly on examining the inclusion of financial performance into the truck regulatory legislation.

Impact of Corporate Social Responsibility on Company Performance

The primary aim of this research is to evaluate the impact of Corporate Social Responsibility (CSR) on the financial performance of organizations. The evaluation of the financial performance of the company is carried out by employing key indicators such as Return on Equity (ROE), Return on Assets (ROA), and Return on Sales (ROS). In the current study, Corporate Social Responsibility (CSR) is considered an exogenous variable, whereas Return on Equity (ROE), Return on Assets (ROA), and Return on Sales (ROS) are viewed as endogenous factors. The study's sample consisted of manufacturing enterprises publicly listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. The material was acquired through documentary research methods and an extensive examination of pertinent literature. The researchers utilized a purposive sampling methodology to choose the sample for the study, wherein each period encompassed a total of 41 organizations. The data underwent multivariate regression analysis for analysis. The study's results suggest that there is a statistically significant and positive relationship between corporate social responsibility (CSR) and a company's financial success, as measured by return on equity (ROE) and return on assets (ROA). Nevertheless, it is important to acknowledge that Corporate Social Responsibility (CSR) has a detrimental impact on the company's Return on Sales (ROS).

Internal Controls' Impact on Sacco Performance In Uganda

Purpose: This investigation on the performance of Rukiga SACCO's internal controls was conducted in the Rukiga District. The study's goals were to examine the impact of segregation of duties on Rukiga SACCO's performance, determine the impact of independent checks on that performance, and assess the impact of risk management on that organization's financial performance. Methodology: The study was carried out after the cross-sectional survey. Data from 135 respondents were collected, and quantitative and qualitative analyses were carried out. Since descriptive analysis requires the presentation of a single variable and its properties, frequency tables were used to represent the data. The bivariate correlations between the predictor components and the dependent variable were examined using a Pearson correlation matrix. A linear regression model was used to fit the data. Results/Findings: According to research results from the regression model, segregation of duties (R=762), independent checks (R=676), and risk management (R=899) have a beneficial influence on the performance of Rukiga SACCO in Rukiga District. The main finding of this study is that the performance of Rukiga SACCO is greatly impacted by risk management, separation of roles, and independent checks. Limitations: The structured questionnaire, which was administered by the participant themselves, served as the primary data collection tool. The likelihood of non-responses was anticipated because the researcher loses control of the questionnaire once it is submitted to respondents; this could have an impact on data analysis and generalizability. Yet, in order to guarantee a majority response, the researcher set up follow-up operations. Contribution: Task segregation, independent auditing, and risk management are advised to be given more attention in order to achieve loan portfolio expansion, profitability development, and market share increase, which are crucial elements of Rukiga SACCO's performance in Rukiga District

Do the Size of Oil and Gas Firms Govern their Financial Performance? With Special Reference to Indian Oil and Gas Firms

The amount of profitability, liquidity, solvency, and resource utilization are used to evaluate a corporate organization's financial performance. The firm's size is determined by revenue, overall resources, and the availability of capital to execute the business operations. The study tries to get the governance of the financial performance by the size of firms in the Indian oil and gas sector. The study is based on secondary data taken from the website of Indian oil and gas companies. ANOVA, stacked column chart, and Tukey’s homogeneity analysis applied for to get the disparity, variations and growth trend, and homogeneity of relative financial measures of financial performance. In Indian oil and gas firms, profitability is governed by the size of the firms negatively and directly while return on resources is negatively but negligibly by the size of the firms. There is no governance of liquidity and solvency by the size of firms in the Indian oil and gas industry. The larger manufacturing Indian oil and gas companies must increase their managerial and cost effectiveness in order to increase their profitability and absolute profits, while the smaller production Indian oil and gas companies must include debt in order to increase their level of activity and absolute profits.

Modelling the added value of corporate real estate on organizational performance

PurposeThis study aims to establish the statistical relationships between corporate real estate added value indicators of cost reduction, increasing productivity, risk reduction and flexibility and organizational financial and non-financial performance.Design/methodology/approachThe study adopted a mixed methods approach which encompasses initial expert interviews and subsequent questionnaire surveys. Partial least squares structural equation modelling was applied to test the proposed hypotheses of the study.FindingsThe results highlight the significant influence of three added value indicators on organizational performance while highlighting the need for strategic corporate real estate risk management to enhance performance.Practical implicationsThe results of the study are useful to identify relevant added value indicators that can improve organizational performance as well as potential added value indicators that deserve attention for performance improvement. Moreover, it presents knowledge on corporate performance indicators which is sparsely explored in corporate real estate management literature.Originality/valueThis study makes a novel contribution to corporate real estate management literature by presenting a parsimonious model to alert corporate real estate managers on essential added value parameters towards organizational performance. The model set the theoretical debates to exploit additional added value dimensions and organizational performance.

Responsible business: the path to sustainability

The authors emphasize the significance of corporate social responsibility as a modern corporate governance tool, guiding the economy on the ESG-agenda. The article reveals the model of corporate governance as a viceprinciple for accomplishing the goals of sustainable growth, passing to green economy, outlines the constituent elements relevant for integration into the business strategy of the company. The authors pointed out the value of financial and non-financial information provided to users for the decision-making purposes. This study highlights the key aspect of corporate governance - responsible business, intended, on the one hand, for improving the organization's financial performance, on the other hand, to reducing operating costs through resources saving, facilitating the environment, employees and consumers care.