A Resource-based Perspective on Organisational Capabilities and Financial Performance of Hardware and Construction Companies in General Santos City, Southern Philippines

Abstract

This study examined the relationship between operational strategies and financial stability among hardware and construction companies in General Santos City, Southern Philippines, using the Resource-Based View framework. It assessed the extent to which firms implemented operational strategies in supply chain management, inventory oversight, financial planning and management, and technological integration. It also evaluated financial stability in terms of liquidity, profitability, and solvency. A quantitative descriptive-correlational design was used. Data were collected from 250 owners, managers, or authorised representatives through a structured survey questionnaire. The data were analysed using percentages, weighted mean, Spearman’s rank correlation, and multiple regression analysis. Results showed that operational strategies were implemented to a high extent, with an overall mean of 3.83. Inventory oversight obtained the highest mean, followed by financial planning and management, supply chain management, and technological integration. Financial stability was also rated high, with an overall mean of 3.89. Solvency obtained the highest mean, followed by liquidity and profitability. Spearman’s rank correlation indicated a significant positive relationship between operational strategies and financial stability, r = .648, p < .001. Regression analysis showed that technological integration, supply chain management, inventory oversight, and financial planning and management significantly predicted financial stability, explaining 49.5% of the variance. The findings suggest that stronger operational practices are associated with better perceived financial stability among the surveyed firms.