Organizational Financial Performance Research Articles

HR Analytics: Predicting and Enhancing Financial Performance through Human Resource Data

The aim of this research is to investigate the predictive capabilities of HR Analytics in enhancing organizational financial performance. Employing a comprehensive literature review, this study examines the correlation between various HR metrics and key financial indicators, such as revenue growth and profitability. Methodologically, longitudinal analysis of HR practices and financial performance data is conducted to assess the predictive power of HR Analytics. The findings reveal significant correlations between HR metrics such as employee engagement, talent management practices, and training investments, and organizational financial outcomes. Specifically, organizations with engaged workforces and effective talent management strategies exhibit higher levels of profitability and innovation. Strategic investments in employee development, as evidenced by training investments, yield tangible benefits in terms of productivity and financial performance over time. These results underscore the importance of leveraging HR data to inform strategic decision-making processes and optimize HR strategies to align with broader business objectives. Moving forward, organizations are encouraged to adopt a holistic approach to HR management, integrating HR practices with emerging technologies and fostering cross-functional collaboration to drive sustainable growth and competitiveness.

The Measurement of Organizational Social Media Integration Impact on Financial and Innovative Performance: An Integrated Model

Organizations are investing in social media for communicating with customers, promoting employee collaborations, and integrating with partners and suppliers. One of the essential organizational capabilities that can help organizations create and share knowledge and improve their performance and create competitive advantage is social capital and social media integration. Therefore, while examining the role of social media integration on the three dimensions of social capital and the organizational emphasis on knowledge management, the present study has evaluated the impact of knowledge quality on improving organizational financial and innovative performance. This study was conducted in a sample of 280 employees of a bank in Iran. The present study had an applied data collection methodology, using structural equations modeling for analyzing with a descriptive correlational research goal. The results showed that integrated social media positively affects the social capital dimensions and organizational knowledge quality. This study highlights both the potential and limitations of social media in promoting organizational knowledge management. Businesses must consciously manage the assimilation and use of social media to benefit from them. The authors position the study at the intersection of social media, social capital, and knowledge management and explicate how social media works through social capital and organizational knowledge management efforts to affect knowledge quality.

The Effects of Corporate Social Responsibility on Corporate Reputation and Firm Financial Performance: Mediating on the Role of Operating Cash Flow, Profitability and Financing

The study examined the impact of corporate social responsibility on organization financial performance in Nigeria. The purpose of the study was to mediate the role of profitability, productivity, financing and its impact on the organization financial performance of the Nigerian manufacturing company. This Study is predicated on the stakeholder theory and utilitarian theory. secondary data source was explored through Keystone Bank Plc annual financial report in presenting the facts of the situation.
 Data disaggregating into operating cash flow profitability, and financing proxies for organization financial performance and corporate social responsibility. The Ordinary Least Square (OLS) Estimation technique and Granger-causality test were adopted. The findings of the study suggests that there is insignificance relationship between operating cash flow and Corporate Social Responsibility .profitability and financing have positive and significant relationship with corporate social responsibility The paper recommends that management should see Corporate Social Responsibility as a business opportunity that is beneficial in the long run thereby, incorporating credible and well-structured social responsibility policies and organization can strengthen their relations with customers and ultimately improve their financial performance if discretional social responsibility to stakeholders is integrated into business routines.

The Impact of HRM Practices on Organizational Financial Performance of Banking Sector of Pakistan

This research comprehensively assessed the relation between framework of human resource management (HRM) practices and organizational financial performance. The results based on a sample of banks of Pakistan demonstrate that these practices have a monetarily and measurably huge effect on financial performance of organization in short and long term. Information was gathered through a questionnaire survey and tested on random sample of 120 bank employees in Pakistan. The effect of HR practices on financial performance of association is to a limited extent dependent upon their interrelationships. The mediating model is applied where the perceived organizational support is the mediating factor among the independent variables HR practices and dependent variable the financial performance of firm. The investigation demonstrates the relationship on the information gathered by the surveys using Statistical techniques, i.e. correlation and regression. The study concluded that all tested variables have a positive relation and impact on financial performance of banks. Towards the end, the research challenges are presented to mainstream researchers and future patterns are also enlisted.

Examining the Effect of Budgetary Controls on the Financial Performance of Oman Telecommunication Company.

The budgeting process and budgetary control are one of the most important activities that have great importance in the techniques used for planning and monitoring activities and all the administrative and financial functions of the organization. This study aims to assess the effect of budgetary control on the financial performance of the Oman Telecommunications Company and verify the effectiveness of budgetary control techniques in the company, in light of the support and role of top management for budgetary control techniques in the company.
 This study will allow financial managers in various companies to understand the nature of the work of budgetary control techniques, their importance, and the extent of the impact of each technique, and thus managers will be able to determine the best-used and appropriate techniques that will lead to raising efficiency in financial and organizational performance.
 As for the research methodology used in the study, the survey method based on questionnaires and interviews was used. Data were analyzed using frequency distribution, correlations, and regression analysis. Microsoft Excel was used to analyze the collected data. As for the interview, they were analyzed by descriptive and explanatory methods.
 The results indicated that there is a positive relationship between budgetary control and the financial performance of the company, the differential impact of budgetary control techniques, and the confirmation of the company’s use of the technique of variance analysis and accounting responsibility, as well as the importance of budgetary control procedures. The results also indicate the importance of support and the role of top management for budgetary control techniques.
 Several recommendations were made through the results of this study. The recommendation was made on the need to understand and implement the company’s adjustment of funds technique for its importance in improving and raising the company's financial performance significantly in the company.
 Keywords: Budgetary Control, Organizational Financial Performance,
 Budgetary Control Techniques, Budgeting 

Influence of Service Innovations on Profit Growth: a Case of Motor Vehicle Retailers

Organisations implement innovation strategies to remain competitive and achieve improved business performance. Previous studies have focused more on product and technology innovations. The purpose of this article is to determine the influence of service innovations on the financial performance of organisations – specifically profit growth – using the theory of competitive advantage. A quantitative research method was employed to achieve the research objective, with linear regression analysis used to analyse the primary data. Cronbach values were calculated to determine the reliability and validity of the research instrument used to collect the primary data. The findings of the research on which this article is based, confirm the existence of a positive relationship between service innovation practices and profit growth. Recommendations are made to key stakeholders in the motor vehicle industry, and future research directions are outlined.

Effect of Cloud computing technology adoption on Reduction in Costs: A critical review from the perspective of business

Digital technologies have significantly contributed towards enabling organizations achieve business excellence objectives. Among technologies that most organization pursue to achieve these goals of performance and flexibility; cloud computing has emerged as a front runner in recent years. Cloud computing technology has a significant effect on organizational performance, and this can lead to improvement in the financial performance as well. This paper aims to presents the effect of adopting Cloud computing technology on reduction in costs from the business perspective. The review findings show that the most perceived benefits of cloud computing are realized through cost savings. However, there is an observed lack of well-defined methodology to accurately estimate cost reduction benefits accruing through cloud technology adoption for an organization. Therefore, it is suggested that further research should be attempted to establish methods to estimating the cost reductions leading to higher profit margins and better financial performance of organizations.

Role of Computerized AIS Applications in Preserving Organizational Financial Performance during COVID19: Moderating Role of Accountants' Experience

Current study aimed at examining the role of AIS application in preserving financial performance of organizations during COVID19 pandemic. Depending on quantitative approach, study utilized a questionnaire built on likert scale which was distributed on (109) individuals within Jordanian organizations. Results of study indicated that accounting information systems contributed to the continuous follow-up and knowledge of the financial performance of the organizations during the pandemic period, which in turn supported the principle of correct and quick decision-making that is in the interest of shareholders, working individuals and customers by taking precautionary measures to ensure that the organization does not reach financial insolvency in view of financial data that together constitute the informational outputs of accounting information systems. This support was backed up with the moderating variable of accountants' experience, experience in this case managed to help accountants predict the coming situations and help the organization overcome the obstacles based on their previous experiences in similar situations. Study recommended the necessity of activating risk management strategies by organizations when facing crises and epidemics

Analyze the Impact of Restructuring or Right Sizing Exercise on the Organization's Financial Performance

Analyze the Impact of Restructuring or Right Sizing Exercise on the Organization's Financial Performance

Relationship of board diversity with firm’s financial performance: The case of publicly listed companies in China

This study examines the impact of board diversity including the gender, nationality, and independence of board members on the financial performance of publicly listed companies in China. This study uses a sample of 206 publicly listed companies on the Shanghai Stock Exchange and the Shenzhen Stock Exchange in China to measure the impact of board diversity on their financial performance. Organizational financial performance is measured with the widely-used accounting-based measurement tool return on asset (ROA), and the market value measurement tool Tobin’s Q. After applying a hierarchical regression analysis this study finds that women on the board impact positively on firm’s financial performance while measures by ROA, but not by Tobin’s Q. The study also finds that the nationality of directors and independent board membership is found to have no significant influence on firms’ financial performance. This study has implications on the business firms to develop the strategic guidelines of board composition to ensure the effectiveness and profitability of their companies

Dimensionality and validity of the operational performance construct in the aviation industry: a factor analytic approach

Purpose- Operational performance is critical to competitive advantage, market share and financial performance of organisations. These benefits of operational performance translate to the socioeconomic growth and development of nations. Despite the relevance of this construct, there is paucity of validated scales on it in the airlines’ sector. This study, therefore, conceptualized, dimensionalized and validated the operational performance construct in the civil aviation sector. Methodology- I exhumed 49 items from the vast literature on operational performance in several sectors, including the airline industry. I contacted managers in the aviation sector and experts in the field to confirm face and content validity. I then engaged an initial sample of 213 workers in the 18 Nigerian domestic airlines and subjected the proposed items to Exploratory Factor Analysis (using IBM SPSS version 27). Furthermore, I enlisted another sample of 201 respondents and used the second set of data to conduct a Confirmatory Factor Analysis (using IBM SPSS Amos version 26). Findings – The initial 49 items passed the test of face and content validity. Exploratory Factor Analysis resulted in the extraction of 29 items from the initial 49 items, representing five principal components (quality, cost, responsiveness, innovation and safety). Upon Confirmatory Factor Analysis, the final 29-item instrument passed the tests of validity and reliability. The proposed overall measurement model had a good fit with the sample data. Conclusion- Based on the findings, the study emphasized the need for managers in the airline sector to be aware that the twenty nine observable indicators validated in this study can be deployed to improve their organisations’ operational performance via quality, cost, responsiveness, innovation and safety. The paper reveals some methodological limitations and suggested that structural models on the nexus between operational performance and other variables, such as organizational culture and environmental turbulence, be developed and tested in diverse settings.

Effects of inflation accounting on organizational decisions and financial performance in South African retail stores

The inflation accounting technique allows a business to show or have a sensible picture of their gains due to present cost coordinates with present revenues. Thus, the effects of inflation accounting on organizational decisions and financial performance of Kwa-Zulu Natal retail stores were evaluated in this study. The study used a quantitative research method. A total of 161 completed questionnaires were received from respondents in the selected 20 listed stores in Kwa-Zulu Natal. Thus, the Exploratory Factor Analysis and linear regressions were employed in this study. The empirical study reveals how inflation accounting significantly impacts organizational decisions and financial performance of the retail business with such coefficients (F (1, 159) = 49.269, p < .0005; F (1, 159) = 28.959, p < .0005). The findings of this study highlighted positive relationships between the variables that were used. Thus, the study recommends that retail stores always consider inflation changes and apply inflation accounting techniques to make adjustments to produce more accurate results in their financial statements. Heated discussions now surround the basis of financial performance measurement via historical cost accounting. This influences their decision making and financial performance positively.

Investigating the role of cyber loafing on financial performance of organization

This study was conducted to investigate the role of cyberloafing on the financial performance of the organization. The present study is applied objectively and it is a descriptive-correlational research in terms of data collection. The statistical population of this study is 300 employees of Melli Bank in Shiraz. The sample size was considered 168 employees through Cochran formula. The sampling method was stratified random. Data were collected through standard questionnaires. Cronbach's alpha was used to assess the validity as the content and reliability of the questionnaire. Correlation matrix and linear regression was used to test the hypotheses using SPSS software. The results showed that there is a significant and inverse relationship between cyberloafing and financial performance of the organization.

Financial Risk Management and Profitability of Deposit Taking Savings and Credit Cooperative Societies in Nyeri County, Kenya

Profitability is a key aspect of organization financial performance. Kenya SACCOs have been rated fastest growing SACCOs in Africa. However, this growth is largely attributed to growth in membership and penetration. On the other hand the sub sector has recorded irregular trend on the profitability over the last half a decade. Though past literature has tried to link financial risk management to profitability levels, a range of knowledge gaps remain undressed. The current study therefore sought to establish the effect of financial risk management on profitability targeting deposit-taking SACCOs in Nyeri County. To address this objective, the study targeted the following specific objectives; to examine the effect of credit mitigation, liquidity risk controls operational risk mitigation and finally compliance risk mitigation on profitability of deposit taking SACCOs in Nyeri County. Descriptive study design adopted targeting a population of 8 deposit-taking SACCOs. A census study approach was used to subject all the SACCOs to study. The respondents comprised of deposit taking SACCO managers or operational manager. Thus, in total, the study targeted 8 respondents from the management of the SACCOs. Questionnaires were adopted as a tool for data collection. The researcher administered questionnaires to the respondents by dropping to the respondent office and collected at convenient date agreed by both parties. Before undertaking the study, the researcher conducted a reliability test to assess the consistency of the tool using Cronbach’s Alpha. The study used descriptive and inferential statistic in summarizing the data. Under descriptive statistics, the researcher used mean and standard deviation. To test the significance of study variables, the researcher used Pearson correlation and simple linear regressions. The researcher adhered to research ethic during data collection period. The study findings are presented in charts and tables. The study found compliance risk control; liquidity risk control and operational risk control had significant effect on the performance of Saccos in Nyeri while credit risk control was found insignificant in predicting performance of Saccos in Nyeri County. The study recommends Saccos to intensify the compliance risk control, liquidity risk control and the operational risk control practices in enhancement of Sacco’s performance.

BUSINESS PROCESS LIFE CYCLE AFFECTS COMPANY FINANCIAL PERFORMANCE: MICRO, SMALL, AND MEDIUM BUSINESS ENTERPRISES DURING THE COVID-19 PERIOD

The business process life cycle is a collection of structured work activities that are interconnected to solve a problem that results in an output (product / output) or service that achieves goals and supports the achievement of strategic goals and objectives of an organization's financial performance. Business processes aim to achieve financial performance that is effective, efficient and increases the productivity of an organization. The life cycle of micro, small and medium enterprises aims to survive post-Covid-19 in order to increase the productivity performance of the organization's financial performance. To achieve this goal, an organization needs a good business process to support the organization's financial performance and business ventures in designing activities to produce new products in order to develop management techniques so that they can survive the midst of the global Covid-19 crisis. The product life cycle that can identify opportunities for environmental improvement is an important part of an organization that aims to minimize total costs, low prices and production results, improve the financial performance of micro, small, and medium business processes. Techniques in producing using financial and non-financial information, to improve the company's financial performance, and to contribute to the sustainability of business processes aim to provide physical information on material and energy use, as well as monetary information on costs, revenues and savings related to the company's financial performance. This research was carried out on micro, small and medium enterprises in Indonesia. This research method is descriptive and verification methods, the analysis tool is structural equation modeling (SEM, Lisrel). The results showed that the business process life cycle had an effect on the financial performance of the Covid-19 small, and medium enterprises business companies.Keywork: Business Process Life Cycle, Corporate Financial Performance. Micro, Small, And Medium Enterprises, Covid-19 PeriodJEL Classifications: E3, G2DOI: https://doi.org/10.32479/ijefi.10516

Evaluating the Financial Performance by Considering the Effect of External Factors on Organization Cash Flow

Financial performance is the measure of an organization’s productivity and effectiveness. It is used as an indicator of an organization’s ability to use available resources in generating returns and profits for its stakeholders. Determinants of financial performance include employee productivity, leadership in the organization and resource use. An organization’s financial performance defines its continuity. Stability in an organization is dependent on its financial accounting and management. In the world today, an organization’s corporate success is influenced by factors that are often out of its control. The external environment of an organization entails a variety of factors whose existence influences its performance and behaviors. The action of these factors directly or indirectly affects organizations. Organizations have to conform to these external factors for their survival. Organizations are environment-dependent and environment serving. An organization is impacted by the environment in which they operate and its success is solely dependent on its ability to adapt to its environment. Changes in external environment factors have a significant impact on the organization’s survival and success. The purpose of this research was to assess the effect of external factors on an organization’s cash flow. The aim of the study was to obtain data on these external factors and analyze them with the view of finding out their relationship with financial performance of organizations. Linear regression analysis was to find the correlation between the external factors and organization’s financial performance.

Impact of Corporate Governance on Financial Performance of Organization: Study of Manufacturing Firms in Pakistan

This study aimed to discover the impact of the corporate governance mechanism on firm financial performance and better understand the relationship among different corporate governance mechanisms such as board size, board composition, and firm performance in the Karachi Stock Exchange. All listed manufacturing firms at PSE are the population of this study. The data has been collected through simple random sampling of different manufacturing firms. The panel regression method technique is used in the present study to identify corporate governances effect on a firms financial performance. The findings of this study highlight that the Board of directors characters do matter a lot in the non-financial sector of Pakistan. So the policymakers and rest of the stakeholders must consider the finding of this study while formulating different policies regarding the above discussed dimension of Board of directors to magnify their respective firms’ financial performance.

Internal organizational factors and financial performance of cooperatives in Rwanda: A case of Zigama CSS

Internal organizational factors and financial performance of cooperatives in Rwanda: A case of Zigama CSS

The Influence of Entrepreneurial Psychological Leadership Style on Organizational Learning Ability and Organizational Performance.

In order to study the influence of different entrepreneurial psychological leadership styles on organizational learning ability and organizational performance and to provide theoretical basis for the improvement of organizational benefits of entrepreneurial enterprises in the future, 421 general managers, middle managers, and grassroots managers of 350 small- and medium-sized private enterprises in Beijing were surveyed by questionnaire in two forms: online and on-site. Then, a hypothesis model of the relationship between different entrepreneurial psychological leadership styles and organizational learning ability and organizational performance was constructed. The correlation between transformational, transactional, and laissez-faire psychological leadership styles and organizational performance and organizational learning ability was analyzed using multiple regression models. AMOS 7.0 software was used to simulate and verify the model. The results show that transformational psychological leadership style is positively correlated with organizational learning ability, financial performance, and growth performance; transactional psychological leadership style is positively correlated with organizational financial performance, growth performance, and organizational learning ability; there is no correlation between laissez-faire psychological leadership style and organizational financial performance and growth performance, but there is a significant positive correlation between laissez-faire psychological leadership style and organizational learning ability. The covariance between the error terms of the internal and external potential variables of the model is positive, and the factor load value of each potential variable and the observed variable is between 0.5 and 1, which shows that transformational and transactional psychological leadership styles have a more positive influence on organizational financial performance and learning ability than a laissez-faire psychological leadership style. The hypothesis model of the relationship between entrepreneurial psychological leadership styles and organizational learning ability and organizational performance conforms to the adaptation criteria and is feasible.

A Survey on New Product Development, Market Orientation and Organizational Financial Performance: A Case Study on Selected Beer Factories in Ethiopia

Survey was conducted to investigate the association between market orientation, production process, product performance, organizational performance and financial performance. The purpose of this survey was to investigate relationships among market orientation, launch strategy, product performance, organizational performance, profitability and financial performance. Target populations were employees of selected Ethiopian beer factories BGI Ethiopia who are currently consuming the product; from which sample was determined through judgmental sampling method. Inquired data was collected via survey questionnaire, linear regression analysis was conducted to check the relationship among leading variable. Finally it was found that firms’ profitability and financial performance are being influenced by market orientation, launch strategy, product performance and organizational performance. Firms are recommended to focus on enhancing market orientation, launch strategy, product performance and organizational performance to boost profitability and financial performance.