The Importance of Organizational Capacity in Improving Corporate Performance

Ifa Rizad Mustapa,Siti Seri Delima Abdul Malak

Recognizing the importance of organizational capacity to the Malaysian industry, the current study focuses to examine the effect of organizational capacity components on corporate performance. The study emphases on achieving two objectives: first, examining the perceptions of Malaysian listed companies’ directors on organizational capacity components; and second, assessing whether different elements of organizational capacity influence the performance of Malaysian listed companies. A questionnaire survey and the regression analysis method have been applied in obtaining the data and answering the research questions respectively. Findings of the study reveal that both organizational structure and human resources statistically significantly impact corporate performance. On the other hand, it was found that there was no influence on corporate performance by neither organizational learning nor infrastructure. Accordingly, outcome of this research is expected to contribute to the industry by identifying of whether organizational capacity plays a significant role in influencing corporate performance and hence acknowledge company of how they can improve their performance through organizational capacities. Further related studies in the future could be conducted by including some other organizational capacity components.

Volume 11 | 08-Special Issue

Pages: 42-51