Relational capability, organizational competencies and financial performance in small and medium-sized companies in Slovenia
Journal Title: Journal of Management and Business Administration. Central Europe - Year 2011, Vol 19, Issue 4
Abstract
This paper examines the relationship between relational capability and financial as well as nonfinancialperformance. It is hypothesized that relational capability that is based on vertical ties enhances financial performance and the development of organizational competencies. This theory is tested using cross sectional data concerning SMEs from most internationalized industries in Slovenia. The results of the regression analysis partially support the hypothesis. Higher relational capability in a supplier network is associated with a higher level of both financial performance and knowledge-based organizational competencies. However, the results on relational capability in a customer network with respect to organizational competencies are insignificant. Therefore, the findings of our study show that the vertical ties that companies develop (with suppliers and customers) are not of equal importance.
Authors and Affiliations
Mariola Ciszewska-Mlinarič, Franjo Mlinarič, Krzysztof Obłój
Keywords
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