A systematic review of financial performance in the manufacturing industry

Abstract Achieving exceptional financial performance is a primary goal for every management team due to its importance in establishing a solid firm structure and facilitating growth. However, several factors consistently hinder the attainment of this objective, resulting in adverse effects on a firm’s performance and financial success. Therefore, this study aims to analyze scholarly publications to understand relevant factors influencing the financial performance of firms in the manufacturing industry. Using keywords in the Scopus database, we identified a total of 808 papers published between 1987 and 2022, and ultimately selected 289 for further analysis based on predetermined criteria. The selected literature was then analyzed in two different ways. First, we discerned the crucial factors affecting the financial performance of manufacturing firms. Our systematic review revealed that organizational characteristics (e.g., CSR practices, strategy, board characteristics, innovation & technology, information, decision-making and communication, and environmental and sustainability practices) play a more significant role in determining the financial performance of a firm than external factors (e.g., market economic parameters, government policies & support, and competition). Second, we employed VOSViewer software to dissect the selected publications, including the creation of bibliometric co-word maps and the examination of bibliographic coupling among journals. The results yielded valuable insights into leading nations, notable journals, noteworthy studies, trending keywords, and prominent publications in this field. Moreover, our research emphasizes the multifaceted nature of financial performance-related factors, offering useful insights for future studies exploring the interplay between factors and the performance of manufacturing firms.