The Impact of Organizational Factors on Financial Performance: Building a Theoretical Model

Abstract

Abstract:The paper is purposively designed to study the linkages between organizational factors, including liquidity, leverage, asset utilization, market share position and firm size on financial performance in service firms. In assessing the linkages, the study recruits return on assets (ROA) and return on equity (ROE) as dependent variables to assess financial performance derived from the existence of the stated organizational factors. The aspect of financial performance in service firms is an important one as it reflects the effectiveness of the management. Additionally, the growth of productivity in service firms is traditionally low compared to the manufacturing firms; hence, the organization of factors in manufacturing firms has been quite documented in the literature to be linked with financial performance. This provokes the question of whether management practices and organizational factors that have enhanced financial performance in manufacturing firms can also be accounted for the service firms. The financial performance of the company is essential to measure management as the individuals and groups within the organization that contributes towards the financial objectives of the company. The proposed research framework can be of practical value for the firms. Managers can benefit from the outcomes of the paper by having a clear picture of organizational factors and conducting necessary research in order to find out the true nature of these factors.

The Influence of Organizational Culture and Work Motivation on Organizational Commitment

“…According to Tika, ( 2014), the indicators of Organizational Culture are individual initiatives, integration, rewards, and communication patterns. The relationship between organizational culture and organizational commitment, according to Awadh & Saad, (2013) says organizational culture is a mixture of values, beliefs, communication, and behavioral explanations that guide people in increasing organizational commitment to optimize work productivity. It is in line with research conducted by Siwi et al, (2020) proving that organizational culture has a significant positive effect partially and simultaneously on employees' organizational commitment.…”

“…According to Tika, (2014) the indicators of Organizational Culture are individual initiatives, integration, rewards, and communication patterns. The relationship between organizational culture and organizational commitment, according to Awadh & Saad, (2013) says organizational culture can improve employees in terms of a mixture of values, beliefs, communication, and behavioral explanations that guide people to increase organizational commitment to optimize work productivity.…”

Kemampuan Dinamis Aspek Pelayanan Dan Manajemen Pengetahuan Sebagai Strategi Peningkatan Kinerja Pdam Kabupaten Jember

“…Kinerja organisasi meliputi kinerja pasar, kinerja keuangan, dan pengembalian pemilik (Rehman et al, 2019). Tujuan dari setiap organisasi yang berorientasi pada laba adalah untuk mencapai kinerja keuangan yang dilihat sebagai ukuran untuk menilai efektivitas manajemen (Fadah et al, 2020;Juniar et al, 2018;Saad M & Zhengge, 2015). Penilaian kinerja dapat disusun berdasarkan efektivitas, produktivitas, kualitas, kepuasan pelanggan, efisiensi, inovasi dan ketahanan finansial (Ondoro, 2015).…”

“…Penilaian kinerja dapat disusun berdasarkan efektivitas, produktivitas, kualitas, kepuasan pelanggan, efisiensi, inovasi dan ketahanan finansial (Ondoro, 2015). Setiap organisasi harus mengevaluasi dan memantau kinerja serta menyelaraskan kinerja dengan tujuan bisnis secara keseluruhan (Fadah et al, 2020;Juniar et al, 2018;Saad M & Zhengge, 2015). Kebutuhan untuk menilai kinerja organisasi merupakan faktor penting bagi investor dan investor sebagai pedoman dalam mengambil keputusan investasi dan pendanaan.…”

Assessing the Impact of Financial Literacy on Firm Sustainability: Mediating Role of Financial Access and Firm Growth

“…Financial literacy is one of the talents that may round out a MSMEs owners' accomplishments. The article also considers the effect of MSMEs' growth on the economic development of the country from a theoretical standpoint (Eniola & Entebang, 2015;Saad M & Zhengge, 2015).…”