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Determinants of Firm Performance: A Subjective Model

Author

Listed:
  • Murugesan Selvam
  • Jayapal Gayathri
  • Vinayagamoorthi Vasanth
  • Kasilingam Lingaraja
  • Sigo Marxiaoli

Abstract

The performance of firm is a relevant construct, in strategic management research, across the globe and frequently it is used as a dependent variable. In spite of its relevance, there is hardly any consensus about its definition, dimensionality and measurement, which limits advances in research. This review article suggests a comprehensive subjective measurement model for performance of firms, based on indicators and findings of earlier research studies. The final subjective model was developed with nine determinants/dimensions, namely, profitability performance, growth performance, market value performance of the firm, customer satisfaction, employee satisfaction, environmental audit performance, corporate governance performance and social performance. It is found that these nine dimensions or determinants cannot be used interchangeably since they represent different aspects of firm performance and different stakeholders of firms have different demands that need to be managed independently. Researchers and practitioners may use the proposed subjective model, in empirical studies, to evaluate the multiple performance of a firm.

Suggested Citation

  • Murugesan Selvam & Jayapal Gayathri & Vinayagamoorthi Vasanth & Kasilingam Lingaraja & Sigo Marxiaoli, 2016. "Determinants of Firm Performance: A Subjective Model," International Journal of Social Science Studies, Redfame publishing, vol. 4(7), pages 90-100, July.
    • Handle: RePEc:rfa:journl:v:4:y:2016:i:7:p:90-100
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    Citations

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    Cited by:

    1. Hope Osayantin Aifuwa, 2020. "Sustainability Reporting And Firm Performance In Developing Climes: A Review Of Literature," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(1), pages 9-29.
    2. Rahmita Dwinesia Paputungan & Bambang Subroto & Abdul Ghofar, 2020. "Does institutional ownership moderate the effect of intellectual capital and company value?," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 127-136, January.
    3. Raymond Elikplim Kofinti & Emmanuel Orkoh & Raymond Boadi Frempong & Samuel Kobina Annim, 2023. "Firms' digital investment and resilience to shocks: Evidence from the COVID‐19 pandemic in Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 2157-2176, October.
    4. repec:eur:ejesjr:362 is not listed on IDEAS
    5. Kwabena Agyarko Gyekye & Joseph Akadeagre Agana & Kwame Mireku & Daniel Domeher & Eric Tieku Koranteng, 2024. "The effect of corporate social responsibility on firm performance: Insights from ISO 9001‐certified manufacturing firms in Ghana," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1667-1676, May.
    6. LAMBE, Isaac, Ph.D & ORBUNDE, Bemshima, Ph.D & TION, Williams A. & HARUNA, Dzugwahi, 2022. "Moderating Role of Managerial Ownership on the Effect of Cash Conversion Cycle and Receivable to Payable ratio on Firm Performance in Listed Industrial and Consumer Goods Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 868-880, November.
    7. Fatoki Olawale, 2019. "Green Marketing Orientation and Environmental and Social Performance of Hospitality Firms in South Africa," Foundations of Management, Sciendo, vol. 11(1), pages 277-290, January.
    8. Nusrat Hafiz & Ahmad Shaharudin Abdul Latiff & Md Asadul Islam & Abu Naser Mohammad Saif & Sazali Abd Wahab, 2022. "Towards the Underlying Theories of Small Firm Growth: A Literature Review," FIIB Business Review, , vol. 11(1), pages 36-51, March.
    9. Mulaa, Josephine K. & Kilika, James M. & Namusonge, Mary J. & Institute of Research, Asian, 2021. "Conceptualizing Strategic Innovation in a Firm Context: A Theoretical Review and Research Agenda," OSF Preprints 8ckts, Center for Open Science.
    10. I. Wahyudi & A.I. Suroso & B. Arifin & M.S. Rusli & R. Syarief, 2024. "The effect of corporate entrepreneurship on firm performance: evidence from lubricant distributor firms in Indonesia," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 41(2), pages 236-261.
    11. Kamandulienė Asta & Kulbokas Žilvinas, 2020. "The Assessment of Financial Performance of the Lithuanian Dairy Sector’s Listed Companies," Management of Organizations: Systematic Research, Sciendo, vol. 83(1), pages 73-92, June.
    12. Saromi Newton & Sahayaselvi Susainathan & Hesil Jerda George & Majdi Quttainah & Satyanarayana Parayitam, 2024. "Top Management Commitment as a Moderator in the Relationship Between Green Banking Adoption Practices and Performance: Evidence from India," Indian Journal of Corporate Governance, , vol. 17(1), pages 33-62, June.
    13. Wu, Shang-Ho & Lin, Feng-Jyh & Perng, Chyuan, 2022. "The affecting factors of small and medium enterprise performance 11The authors thank Kunhuang Huarng, National taipei University of Bussiness, and Fang-Yi Lo, Feng Chia University for their careful re," Journal of Business Research, Elsevier, vol. 143(C), pages 94-104.
    14. Chai, Wei Jian, 2019. "The Effects Of Liquidity Risk And Market Risk On Mcdonald’S Corporation Performance From 2014 To 2018," MPRA Paper 97268, University Library of Munich, Germany, revised 15 Nov 2019.
    15. Olayemi, Olufemi Olabode & Okonji, Patrick Sunday & Oghojafor, Ben E. Akpoyomare & Orekoya, Ibrahim Oluwapelumi, 2020. "Innovative Behaviour and Firm’s Performance in the Nigerian Manufacturing Sector," MPRA Paper 105333, University Library of Munich, Germany, revised 2020.

    More about this item

    Keywords

    Strategic Management; Firm Performance; Measurement Model and Subjective Indicators;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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