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Modeling of critical profitability factors: Empirical research from food industry in Serbia

The paper is motivated by practical and always current problem of increasing profitability as one of the organizational performances. Critical success factors (CSFs) answer the question about what drives growth, profitability, and success in company. The research presented in this paper was conducted on a sample of two hundred companies in the food industry of the Republic of Serbia. The aim of the research is whether and to what extent there is a link between the assumed critical success factors and profitability, as well as determining the contribution of critical factors to predicting profitability. Based on techniques of correlation and multiple regression analysis, it was found that the efficiency, innovation, quality and flexibility, as critical factors explain a statistically significant part of the variance in profitability reflected by indicators ROA, ROE and EBITDA margin.