Direct Effect of Technology, Human Resource Flexibility, Leadership and Culture on Firm Performance

Abstract

The objective of this study is to examine the direct effects of Technology, HR Flexibility, Leadership and Culture on firm performance. This study is based on a structured mail survey questionnaire to HR managers in the manufacturing industry. The direct effect of these variables on firm performance is empirically tested using data collected from companies listed in the Federation of Malaysian Manufacturers directory. Direct effects of each independent variable on the dependent variable are evaluated with using structural equation modeling- Partial Least Square method. Technology, Human resource flexibility and leadership were found to have positive significant relationship with firm performance. The overall findings indicate a significant positive relationship between technology, human resource flexibility, leadership on performance, providing support and extension to the resource-based
view (RBV).

Keywords: Technology, HR Flexibility, Leadership, Culture, Firm Performance, Malaysia.