Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Impact of Profitability and Financial Performance on Improving Productive Efficiency in Jordanian Industrial Companies

Author(s): Ayman Saleh Mustafa Harb

The study aims to identify the effect of profitability and financial performance on improving productive efficiency in Jordanian industrial companies. In order to achieve this objective, the researcher designed a questionnaire that was distributed to the study population that is composed of Jordanian industrial companies. In order to analyze the data collected some analysis instruments were used, namely: Cronbach alpha, multiple linear regression analysis, Sample t-Test analysis. Accordingly, the study found that there is a statistically significant impact of the profitability and financial performance on improving productive efficiency in Jordanian industrial companies. Based on that, the researcher presented some important recommendations to the Jordanian industrial companies: firstly, increasing the interest in profitability and financial performance to improve productive efficiency. Secondly, increasing the interest in the truthiness and reliability of financial data and statements that reflect the profitability, financial performance, and productive efficiency. Lastly, enhancing awareness among operators and management in relation to the impact of profitability and financial performance on improving productive efficiency to avoid the weaknesses and focus on the strength in the firm operations.

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