Organisational capabilities as competitive strategies for financial performance of business process outsourcing firms in Mauritius

Abstract

The main aim of the study was to gauge the possible influence of financial performance on the sustainability of firms that operate in the BPO sector in Mauritius. The impact of internal capability on profitability, and the effects of asset efficiency on firm performance were analysed through quantitative approaches to gain insight into the financial performance of the BPO firms. Firm-level indicators were utilised to measure the potential relationship between firm characteristics and performance. The regression model identified that return on assets has an impact on net profit margin and the firm size is also statistically significant and positively related to net profit margin. Furthermore, return on equity, current assets, current liabilities and firm size have a significant effect on return on assets. The findings indicate that human talent with the right skills and investment in technology play integral roles in the success of the Mauritian BPO sector.