StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Firm Performance

Only on StudentShare
Pages 9 (2259 words)
Strategic management involves the determination of the ways and means of how the firm can perform well. Those who pursue the field are interested in being able to understand what makes a firm succeed in the market. One theory that seeks to address the issue is that of Path Dependency which states that 'history matters'…

Extract of sample

Arguments for and against are presented to make the reader aware of the issues surrounding the topic. In the end, a synthesis shall be made of the ideas presented and a conclusion on whether firm performance is indeed path dependent or not is made.
Firm performance is at the very heart of business management because it is the time test of any business strategy and theories. Nonetheless, there is little consensus on how to best measure the construct. Researchers and experts with strong finance or economic background use the term to refer to how efficient the firm utilizes its assets in generating profits. While this is certainly an appealing definition, it can be considered to be too narrow the reason being that it disregards the social performance of the firm. This definition only focuses on the financial part whereas firm performance can also be related to how happy its employees, suppliers and customers with its services. In this paper, I will be holding a stakeholder's perspective and consider firm performance as a combination of financial and social performance. To illustrate this construct further, I will be using the model developed by North (1990) as shown in Figure 1:
The reason for our choice of defining firm performance as a function of financial and social constructs is that both have an effect on the other. ...
Download paper
Not exactly what you need?

Related papers

The changing demands of performance on employees in high- velocity companies, perceptions of equity in its three forms may become confused, as job roles and job interdependence become more varied and flexible. Since employees would expect that as their job changes, so will their compensations, designing compensation systems in high-velocity environments presents a major challenge to organisations.…
2 pages (502 words)
Theory of the Firm
Although it is very difficult to suggest which, out of these two is a better structure, but one can clearly identify the merits of each structure. In the U-Form or Unitary form, organizations are broken up into separate departments for each process, for example, separate department for marketing, finance and production. The manager or head of each department reports to the chief executive of the…
11 pages (2761 words)
Family firm going public
The family business is flourishing in many developed and developing countries throughout the world. It is a particular breed of business that can be more clearly understood by keeping in mind the idea of two interconnecting but separate systems. The family and the business are two systems in that the goals, needs and tasks of each are not identical. Because of the ambiguous nature of the…
9 pages (2259 words)
Employee satisfaction and firm performance
The ideas that employee satisfaction is related to productivity in the same degree as customer satisfaction, appeared at the beginning of 90s, and it was confirmed in the practice and experience of various companies. The number of studies devoted to this problem constantly grows.…
12 pages (3012 words)
Why do different theories of the firm exist?
This paper examines a couple of firm theories with the objective of examining their fine and major points and in an attempt to discover what factors have prompted existence and development of multiple theories of the firm. This is achieved through a literature review that incorporates a wide ranging discussion on the main issues as outlined above. In addition, this paper extends the literature…
8 pages (2008 words)
Property Developing Firm
This firm has been relatively successful in the engineering projects that they have pursued and actually has a fine balance sheet. In this study, we take a look at DPSB: their problems, uncertainties and poor performance in property development. We also note their intent improve the firm's performance by adopting an appropriate strategy and transforming it into a better and more efficient…
46 pages (11546 words)