Internal Process Performance as an Indicator of Financial Performance
Keywords:
Financial Performance, Resources Base View, Internal Process PerformanceAbstract
The characteristics of resources approach can contribute to strategic practices and strategic practices can improve financial performance of the companies. Financial performance can develop the capabilities and competencies of companies and this can bring the increasing of competitive advantage. The companies could reach the global competitive advantage by utilise intangible resources. The research method used in this paper is based on a literature review who discuss the RBV theory in relation to capabilities and competencies in creating superior competitiveness. Performance of internal processes as one of the intangible resources is an important company capability that can bring an improvement of the company performance. Internal Proces Performance as an intangible asset which in turn are strategic assets that can affect the company's performance. The view of RBV theory provides knowledge of how important internal resources are in achieving competitive advantage. Therefore, this study focuses on the Resource Based View as a view that affects the existence of internal process performance as an indicator of a company's financial performance.
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