Impact of Internal Business Factors on the Performance of Tea Industry Firms in Rathnapura District of Sri Lanka

Abstract

The firm’s performance is vital to the healthy economy. All owners of the firm, managers and employees are trying to make their firm’s performance in a positive way. But the internal and external factors always affect the firm performance and can control the firm performance's positive path or negative path. Therefore, this study aims to examine the impact of internal business factors on firm performance in the tea industry perspective in Rathnapura district of Sri Lanka. The firm performance was measured using attributes of profitability and future viability by considering whole 212 top-level managers in tea factories in the Rathnapura district as sample. A structured questionnaire was used to collect the data and collected data was analyzed by SPSS. The findings revealed that managerial factors, workplace factors, and entrepreneurial factors, explain approximately 83.9% of the variance in firm performance. Further, β value indicates when managerial factors, workplace factors, and entrepreneurial factors, increase by one-unit and firm’s performance increase by 0.336, 0.106, and 0.453 respectively. In addition, the findings indicate that management factors have statistically significant on the overall performance of the organization. Since there are no sufficient studies in Sri Lanka, the findings of this study will provide information to stimulate positive decisions for relevant businesses.