The effect of customer-oriented strategy with the ability to manage human resources and innovation on financial performance

Document Type : Research

Authors

1 Assistant Professor, Department of Management, Bu-Ali Sina University, Hamedan, Iran

2 MA. of MBA in Strategic, Payam Noor University

Abstract

Aim and Introduction: Organizations need to choose the right strategy to maximize the use of environmental opportunities according to their strengths and weaknesses. Thus, by choosing the best strategy, organizations take an important step to improve their financial performance. The main purpose of this study is to investigate the effect of customer-centric strategy on financial performance with the mediating role of human resource management and innovation in Iran Radiator Company in order to improve the financial performance of this company.
Methodology: This research is applied in terms of purpose and descriptive in terms of data collection method. The statistical population of this study includes 350 employees of Iran Radiator Company. In this research, 183 of these employees were selected by simple random sampling. A standard questionnaire was used to measure the variables. Data were analyzed using descriptive statistics and inferential statistics. Structural equation modeling was used to test the hypotheses.
Finding: The results showed that customer-centric explain and predicts 8% of financial performance, 5.75% of human resource management capability, and 7.50% of Iran Radiator Company's innovation capability. They also explain and predict human resource management capability of 7.40% of financial performance and innovation capability of 13.5% of the financial performance of Iran Radiator Company. The bootstrap method was used to measure the mediating variable in Amos software. The results showed that human resource management capability and innovation capability both have an effective mediating role in the relationship between customer-centric and financial performance of Iran Radiator Company.
Discussion and Conclusion: Therefore, the managers of Iran Radiator Company are suggested to set the goals and strategies of the company in the direction of customer satisfaction and to adjust the competitive strategies of this company based on understanding the needs of customers and to be committed to meeting the needs of customers.

Keywords

Main Subjects

References

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Journal of Strategic Management Studies
Volume 13, Issue 50
June 2022
Pages 149-173

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History

  • Receive Date: 12 June 2021
  • Revise Date: 20 July 2021
  • Accept Date: 01 October 2021

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