The Effects of Human Resource, Marketing and Manufacturing Performance on Financial Performance

Only available on StudyMode
  • Download(s) : 46
  • Published : July 23, 2011
Open Document
Text Preview
THE EFFECTS OF HUMAN RESOURCE, MARKETING AND MANUFACTURING PERFORMANCE ON FINANCIAL PERFORMANCE Ayse TANSEL CETIN Gebze Institute of Technology, TR

ABSTRACT
In today’s competitive environment, in order for a company to exist, it must continually improve its performance by reducing cost, improving quality and productivity, and easy access to market. Therefore, businesses have to know the factors which affect their performance and manage these factors effectively in order to survive and face an ever increasing competitive pressure. The purpose of this article is to explore the effects of the human resource management, marketing and manufacturing performance on financial performance by considering marketing performance and manufacturing performance as mediating variables in the relationships between human resource management and financial performance. For this purpose, data were obtained from 110 firms within and around the Kocaeli Industrial Region. In order to test the hypotheses of this study, correlation and regression analyses were performed. Results of correlation analysis revealed that all variables are positively related to both financial performance and to each other. The findings from regression analysis reveal that both marketing and manufacturing performance have statistically significant positive effect on a firm’s financial performance. Human resource management does not have any statistically significant effect on a firm’s financial performance. The effect of human resource management on financial performance is overshadowed. The results of regression analysis shows that manufacturing performance fully mediates and marketing performance partially mediates the relationship between the human resource management and financial performance Keywords: The performance of the marketing, Human resource, Manufacturing, Financial performance

INTRODUCTION
Today, company managers have realized the importance of involving the whole organization in making strategic decisions in order to compete in worldwide scale. A study by Porter (1990) indicates that business that accomplishes international leadership employs strategies that take advantage of their distinctive competencies. These capabilities include designing new products, installing new production technologies, adapting training programs, using quality control techniques, and improving supplier relationships. Some innovations result from revolutionary changes in strategy, but others are a series of small, incremental changes. Over time, more and more countries have joined the global economic competition. New technology, new products, new markets, new manufacturing techniques and new management concepts are continuously emerging to change an industrial competitive advantage (Li, 2000). Therefore, the impact of sources of competitiveness (human resource management, marketing and manufacturing performance) on organizational performance is still an empirical question of significance, especially when the concept is applied to the emerging economies. Human resource management, marketing and manufacturing performance are the most crucial factors in obtaining and sustaining competitive advantage. For this reason, the purpose of this article is to explore the effects of the human resource management, marketing and manufacturing performance on financial performance in Turkish manufacturing firms. In this study, we also examined the importance of both a firm’s marketing and manufacturing performance as mediating variables of relationships between human resource management and financial performance. In order to test the hypotheses of this study, correlation and regression analyses were performed. Results of correlation analysis revealed that all variables are positively related to both

112 | Journal of Global Strategic Management | 07 | 2010, June

financial performance and to each other. The findings from regression analysis reveal that both marketing and manufacturing...
tracking img