Determinants of Firm Performance: A Subjective Model

Selvam Murugesan (), Jayapal Gayathri, Vinayagamoorthi Vasanth, Kasilingam Lingaraja and Marxia Sigo

International Journal of Social Science Studies, 2016, vol. 4, issue 7, 90-100

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.

Keywords: Strategic Management; Firm Performance; Measurement Model and Subjective Indicators (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:rfa:journl:v:4:y:2016:i:7:p:90-100

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