Purpose The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and small and medium enterprises (SMEs) performance in developing economy of Africa. Design/methodology/approach A quantitative survey design was employed to collect the data from owner/manager of manufacturing SMEs in Nigeria. Partial least square structural equation model was used in the evaluation of both the measurement and structural models to determine the reliability and validity of the measurement and test the hypotheses, respectively. Findings The statistical result indicates a positive relationship between technological capability, learning capability and SMEs performance. Equally, relational capability significantly and positively relates to SMEs learning capability. However, relational capability negatively relates to SMEs performance, while technological capability also negatively relates to learning capability. Furthermore, learning capability mediates the negative relationship of relational capability and SMEs performance to significant positive relationship, while it does not mediate the relationship of technological capability and performance. Research limitations/implications The analysis of this study is restricted to only resource-based view and dynamic capability theory. Data of the study were collected once a time on a self-reported technique. The study contributed significantly to the body literature on technological and relational capabilities and performance. It also demonstrated the need for SMEs manager to recognize and appreciate the roles of these strategic capabilities in achieving sustainable competitive position. Practical implications Through relational capability SMEs develops efficient collaborative relationship to acquire new techniques, knowledge. This is specifically, essential for SMEs firms from less developing and emerging economies as they are lagging behind at the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets. Similarly, technological capability enable firms to identify acquire and apply new external knowledge to develop operational competencies which may lead to the attainment of superior performance. Social implications Government policies and programs designed to support technological development and innovation must be adjusted to consider the peculiar nature of SMEs firms in terms of technology and innovativeness that enhances competitive position and performance. Originality/value This study empirically examined the relationship of technological and relational capabilities and the SMEs learning capability and performance.
How to develop and enhance the effectiveness of external flow of knowledge and information to improve invention and performance of small and medium enterprises (SMEs) has becomes crucial to both researchers and managers. This study was designed to purposely examine empirically the influence of the absorptive capacity on the relationship of organizational learning capability and SMEs performance. A total of 206 valid questionnaires obtained from personal administration of the survey instrument on SMEs manager in Kano state Nigeria. Partial Least Square Structural Equation Model (PLS-SEM). The result of the study indicates that learning capability significantly and positively relates to SMEs firms performance, equally learning capability positively relates with absorptive capacity. The study further established significant positive relationship between absorptive capacity and SMEs performance. Similarly, absorptive capacity mediates the relationship between learning capability and SMEs performance. The study conclude that experimentation, risk taking, external interaction, dialogue and participatory decision making influences SMEs knowledge acquisition, assimilation, transformation and application for better performance.
This study analyzed the environmental factors affecting manufacturing SMEs in Kogi State, Nigeria. The target is to investigate the effects of internal factors as they affect the profitability of manufacturing SMEs in Kogi State. The survey research design was adopted for the study; covered 171 SME owners in Kogi State. The clusters of SMEs were located and utilized for this study. Data were analyzed using descriptive statistics, principal component factor analysis, and binary logit regression. Findings show that business strategy has a significant negative relationship with the profitability of SMEs in Kogi State. Operational strength and debt leveraging significantly and positively relate to the profitability of SMEs in Kogi State. These factors play critical roles in the sustainability of the profitability of manufacturing SMEs in Kogi State. The study recommended that manufacturing SME owners should seek knowledge and skill to crafting and adopting an effective business strategy, boost their operational strength and manage their debt leveraging distinctively to sustain their profitability in the competitive business environment of Kogi State. Contribution/Originality: This study contributes to the existing literature on the environmental factors affecting Manufacturing SMEs. The study uses new methods of principal component analysis and binary logit regression to analyze the environmental factors affecting manufacturing SMEs in Kogi State, Nigeria. 1. INTRODUCTION Recently, the dominion of Small and Medium-scale Enterprises (Manufacturing SMEs) in all aspects of the Kogi State"s economy can never be overemphasized. Importantly, the annual increase in their numbers has been observed to be transformative upon the progress of the economy. Essien (2014) opined that "their increasing number is due to the fact that they require less capital, less labor, low technological knowledge and a little managerial ability for their establishment". Notably, the economic progress abrupt by Manufacturing SMEs appears to be the reason why the political phase of Kogi State has not collapse the economy. Many Manufacturing SMEs have been affected by political undertone that they have either witnessed entropy or folded up few years after startup. It is observed that some other Manufacturing SMEs have witnessed entropy or folded up in the past as a result of frustration by many other environmental forces apart from political force. It is uncontroversial that Manufacturing SMEs do not exist in a vacuum. There must be forces around the operations of Manufacturing SMEs which rather facilitate or frustrate its objectives. It is good to know that opportunities are open to SME owners who take cognizance of the business environment, and those who do not
The increasing globalization and liberalization of trade have posed onto manufacturing small and medium enterprise (SMEs) in developing economies of Africa a survival and growth challenges. Nevertheless, the resource-based-view (RBV) has given rise to a perspective that views a firm’s intangible assets as strategic resources with the potential to create and enhance sustainable competitive advantage in both local and global markets. Based on the peculiarity of SMEs in Africa, this paper develops and validate a conceptual model on the role of strategic organizational capabilities in improving the competitive advantage of SMEs for sustainable development in developing economies of Africa. Precisely, six variables were identified and reviewed as strategic capabilities. A total number of 81 valid questionnaires were retrieved from owners/managers of SMEs in Yobe state Nigeria and used to evaluate the reliability and validity of the adopted measures. The result of Cronbach’s Alpha test reveals a satisfactory value for all the variables under study. Specifically, innovation, learning, management, marketing, relational and technological capabilities have been established to be reliable strategic capabilities that would effectively and efficiently create and improve the sustainable competitive advantage of SMEs in developing economies.
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