Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317397 
Year of Publication: 
2020
Citation: 
[Journal:] Journal of Business Economics and Management (JBEM) [ISSN:] 2029-4433 [Volume:] 21 [Issue:] 2 [Year:] 2020 [Pages:] 473-496
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
The effect of finance business partnering (FBP) implementation on the firm performance remains largely unexplored. The main aims of this study are to investigate whether there is a significant effect between FBP and firm performance and to identify the mediating effect of non-financial performance between FBP and firm performance. A questionnaire-based survey was conducted among 117 Chinese manufacturing firms in the year 2018, and research hypotheses were tested by partial least squares structural equation modelling (PLS-SEM). The findings showed that 1) FBP does not exert a significant and direct effect on the firms' financial performance, 2) when non-financial measures (employees performance, internal process performance, and market performance) are used as mediating variables, the effect of all the three mediating variables on the relationship between FBP and non-financial variables are positive and significant. However, when the relationship between non-financial measures and firm's performance is considered, the mediating effect of the non- financial variables is positive and significant only for the market performance. This study provides, for the first time, empirical evidence that non-financial performance, such as employee skills, internal processes, and market performance, can be enhanced by considering FBP. It also provides practical implications suggesting that manufacturing firms should motivate finance staff to be involved in various decision-making processes.
Subjects: 
finance business partnering
manufacturing firms
financial performance
non-financial performance
survey
China
JEL: 
M41
C83
L20
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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