Title: The impact of companies' capabilities on investment ability and performance

Authors: Velimir Bole; Vladimir Bukvič; Janez Prašnikar; Metka Tekavčič

Addresses: EIPF, Ljubljana, Slovenia ' School of Economics and Business (SEB), University of Ljubljana, Ljubljana 1000, Slovenia ' School of Economics and Business (SEB), University of Ljubljana, Ljubljana 1000, Slovenia ' School of Economics and Business (SEB), University of Ljubljana, Ljubljana 1000, Slovenia

Abstract: Based on the contemporary literature, a structural measurement model was constructed that serves to test whether resources, such as financial flexibility and a firm's capability to explore and take up investment opportunities, are related to the investment ability of firms, which contributes to achieving better financial and non-financial performance. By employing structural equation modelling (SEM) on a sample of Slovenian large and medium-sized enterprises, this paper shows a positive relation between investment ability and performance. Moreover, in addition to financial flexibility, an internal organisation that empowers people, stimulates technological knowledge, and stimulates work in project teams represents an important asset in developing a firm's investment ability and through it also its performance.

Keywords: companies' capabilities; investment ability; performance.

DOI: 10.1504/EJIM.2025.149996

European Journal of International Management, 2025 Vol.27 No.4, pp.671 - 691

Received: 01 Apr 2020
Accepted: 16 Sep 2020
Published online: 21 Nov 2025 *

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