The development of corporate performance models through organizational activity indicies

Abstract

The purpose of this study is to develop causal models which explain the relationships between the levels of organizational activity and corporate performance. An 80 item questionnaire measuring organizational activity was conducted among 2, 782 managers from 47 middle-sized, well performing companies. The results of factor analysis showed that organizational activity has various organizational andpsychological facets, such as clearness of company policy, organizational flexibility and openess, the employees' motivation, commitment, and so on. Multiple regression analyses were conducted to explore the relationships between the levels of organizational activity and the companies' performance indices such as sales efficacy, profit efficacy, sales growth rate, etc. The results produced five static and dynamic models. Each model explains quite well company performance levels by organizational activity concepts. The necessity of further research is discussed to scrutinize the validity of the models and to develop the models for consulting activities.