Examining the quantitative determinants of organizational performance: evidence from China

Abstract

Purpose – The aim of this paper is to examine the determinants of organizational performance (OP) of business enterprises located in China and to explore how individual demographic and organizational characteristics affect OP. Design/methodology/approach – This study applies quantitative methods to examine the OP. Data were collected from 405 managers across 306 organizations in China. Findings – The study finds that, overall, OP is related to five factors, namely, finance and customer, internal business, work satisfaction, pay and benefits and innovation and technology (INT). The results from this study provide new perspectives and support the overall validity of the nomological network of OP factors. The findings also provide guidelines on which perspectives of performance organizations should be enhanced. Practical implications – The five-factor model of OP provides benefit to any organization or individual who intends to examine OP in China. In addition, the findings suggest that organizations should explore ways to enforce their performance. The findings also inform organizational decision makers about practices for performance improvement. Originality/value – The present study was undertaken to advance understanding of OP in China in several ways. The most significant element of this study was the five-factor performance model generated from the structural equation modeling analysis. The results from MANOVA highlight the potential impact of organization theory on how demographic and organizational variables influence OP in China.

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