European Journal of Business and Innovation Research (EJBIR)

EA Journals

Financial Capital Resource Capabilities

The Role of Financial Capital Resource Capabilities in Improving Employee Performance in Courrier Companies in Kenya (Published)

Financial capital in organizations is a key form of asset that exists in various sources and characteristics. Financial capital commonly refers to assets needed by a company to provide goods or services, as measured in terms of money value. The most important sources of financial capital are debt and equity. Debt represents credit from a lender, also known as creditor, and is created when a creditor agrees to lend a sum of assets to a debtor (borrower). It is imperative that firms source for financial resources that will enable purchase of tools and other equipment required by employees in discharging their duties. Equity on the other hand is direct investment into an organization. The initial equity is financed by the principal owner and the start-up team, then equity is obtained for their successive growth from high net worth family members, friends called angel market. This paper is an assessment of the role played by financial capital resource capabilities of a firm to improve employee performance. The study used a target population of 2800 from which a sample of 339 respondents was obtained using Cochran’s formula. Simple random sampling and employed explanatory research design were also used.. Data was analyzed using descriptive and inferential statistics. Correlation and moderated regression analysis were used to test the hypotheses. The findings showed that financial capital resource capabilities had a great influence on employee performance, thus played the key role in organization’s performance.

Keywords: Competitive Advantage, Employee Performance, Financial Capital Resource Capabilities

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