The influence of tangible resources and operational performance to promote financial performance of electronic industry

Abstract

The objective of this study is to examine the role of tangible resources and operational performance (OP) in the financial performance (FP). This study examined the relationship between tangible resources, OP, supply chain, profitability and sustainable FP. Furthermore, this study examined the mediation effect of supply chain and profitability. Indonesian electronic companies were selected in the current study for data collection. Therefore, the population is grounded on the Indonesian electronic companies and data were collected from the employees of these companies. 600 questionnaires were used in this study for data collection and 350 questionnaires were returned to analyze the data. Data analysis was carried out through Structural Equation Modeling (SEM). Results of the study highlighted that resources are the major role in FP. Particularly, the tangible resources of the company are vital to enhance the performance in financial terms. Tangible resources have a positive effect on OP, supply chain and profitability. Furthermore, OP has a positive effect on supply chain and profitability which further increases the FP.