Perceived Financial Viability of Employees Training & Development, Advertisement and Research & Development for a Firm

Abstract

The main purpose of the current study is to examine the impact of three business processes expenditures i.e. research & development (R&D), advertising and training & development (T&D) on firm’s perceived financial performance in developing country like Pakistan. Majority of the previous researches in this area have been done in developed countries so there is a need to conduct such a study in a developing country like Pakistan. The current study tries to make an in-depth investigation into the impact of R&D, advertisement and T&D on perceived financial performance of a firm. The sample consists of 200 respondents from two industries of manufacturing sector i.e. pharmaceutical and cement industry. The study results are based on primary data which is been collected through the questionnaire. The study has made use of different statistical tools in order to substantiate the hypotheses been derived and these tools include descriptive statistics, correlation and regression analysis. Results indicate that 32% of variance in a firm’s financial performance is due to the three independent variables. The study is beneficial to top management to increase their investments in these functional competencies to raise their performance as some of the firms in developing countries have the perception that amount invested in these areas are the expense so this study is helpful to change this perception.