Purpose: Ongoing investigations on modern markets demonstrated that organizational limit structure some portion of the organization’s environment that affect its performance. Knowing its standing to the industry, a recent study inspected the effect of organizational capacity on business performance in Malaysia. The research focuses on attaining two objectives. Firstly, to analyze the perceptions of Malaysian listed companies’ directors on business capacity components. Secondly, to analyze whether different components of organizational capacity effect the performance of organizations listed in  Malaysia.

Methodology: A questionnaire survey and the regression analysis have been used in obtaining the data and answering the research questions respectively.

Main Findings: The consequences of this study show that company structure plays an important role in manipulating the organization’s performance. Nonetheless, organizational learning was established not to explain Malaysian companies’ performance. Hence, the results assist the firm in their hunt for better performance through using suitable business resources.

Implications/Applications: Recognizing organizational structure as an important organizational capacity element might improve the performance of local business in the market to withstand competitive advantage.


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