Financial, Market, and Technology Challenges as Correlates to Financial Performance of Electric Home Appliance Manufacturing Companies
Huiping Zhang | Rowena M. Libo-on
Discipline: Finance
Abstract:
This study investigates the influence of financial, market, and technological challenges on the financial performance of household appliance manufacturing enterprises. Utilizing a mixed-methods approach, the research integrates quantitative regression analysis with qualitative insights from interviews and case studies. Findings reveal that financial challenges, particularly high asset-liability ratios and poor cost management, significantly undermine profitability. Among market challenges, declining customer loyalty shows a substantial negative impact, while market competition intensity proves statistically insignificant. Technological challenges yield mixed outcomes: while difficulties integrating IoT and AI technologies have limited influence, increased R&D investment significantly enhances profitability. These results underscore the need for firms to optimize capital structures, reinforce cost control, foster customer retention strategies, and prioritize R&D. Theoretically, the study extends resource-based and dynamic capabilities theories by illustrating how internal capabilities mediate external pressures. Practically, it offers strategic guidance for enhancing resilience and sustaining competitive advantage in a volatile manufacturing landscape. This research provides actionable insights for enterprise managers and policymakers aiming to support industrial transformation and long-term financial health.
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