Managerial Competencies and Small Business Growth: Empirical Evidence From Microfinance Participants

Authors

  • Syamsuriana Sidek Faculty of Entrepreneurship and Business Universiti Malaysia Kelantan, Malaysia
  • Mohd Rosli Mohamad Faculty of Entrepreneurship and Business Universiti Malaysia Kelantan, Malaysia

DOI:

https://doi.org/10.32890/ijms2014.21.1.3

Keywords:

Small business, growth, management competencies, generic skills, technical skills, Conceptual Skills, Microfinance

Abstract

A large number of studies have been conducted on small business performance. However, potential influence of managerial competencies on small business growth, particularly among microfinance participants is hardly existent. In fulfilling the literature gap, this study provides some insight into the relationship between managerial competencies and small business growth. Using data collected from microfinance participants in Kelantan and Terengganu and applying the Structural Equation Modelling approach, this study found that all the managerial competency dimensions – technical, generic and conceptual skills – had positive and significant impacts on small business growth. While consolidating the theories that managerial competencies explain business growth, this study has several limitations. Future studies should delve into, through qualitative research, why managerial skills are significant for small business growth. Sampling should also include small businesses in other parts of Malaysia, instead of Kelantan and Terengganu.
 
Keywords: Small business, growth, management competencies, generic skills, technical skills, Conceptual Skills, Microfinance.

 

Downloads

Download data is not yet available.

References

Abu Mansor, A., Ahmad, F., Din, M., Hanissah A. R., & Mohd Noor, N. A. (1999). Pengantar pengurusan. Sintok: Universiti Utara Malaysia.

Adeyemo, S. A. (2009). Understanding and acquisition of entrepreneurial skills: A pedagogical re-orientation for classroom teacher in science education. Journal of Turkish Science Education, 6(3), 57–65. IJMS 21 (1), 39–59 (2014)

Ahmad, N. H., Ramayah, T., Wilson, C., & Kummerow, L. (2011). Is entrepreneurial competency and business success relationship contingent upon business environment? A study of Malaysian SMEs. International Journal of Entrepreneurial Behaviour & Research, 16(3), 182–203.

Akande, O. O. (2011). Accounting skills as a performance factor for small businesses in Nigeria. Journal of Emerging Trends in Economics and Management Sciences, 2(5), 372–378.

Al-Madhoun, M. I., & Analoui, F. (2003). Managerial skills and SMEs’ development in Palestine. Career Development International, 8(7), 367–379.

Anderson, J. C., & Gerbing, D. W. (1988). Structural Equation Modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.

Ar, I. M., & Baki, B. (2011). Antecedents and performance impacts of product versus process innovation: Empirical evidence from SMEs located in Turkish science and technology parks. European Journal of Innovation Management, 14(2), 172–206.

Bailey, J., & Mitchell, R. B. (2007). Industry perceptions of the competencies needed by computer programmers: Technical, business and soft skills. Journal of Computer Information Systems, 28–33.

Bakar, L. J., & Ahmad, H. (2010). Assessing the relationship between firm resources and product innovation performance. Business Process Management Journal, 16(3), 420–435.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

Beaver, G. (2002). Small business, entrepreneurship and enterprise development. United Kingdom: Pearson Education.

Benzing, C., Chu, H. M., & Bove, R. (2005). The motivation, problems and perceived success of entrepreneurs in Romania. Journal of the Academy of Business Administration, 10(1/2), 73–88.

Birley, S., & Westhead, P. (1990). Growth and performance contrasts between types of small firms. Strategic Management Journal, 11, 535–557.

Blackburn, R., & Jarvis, R. (2010). The role of small and medium practices in providing business support to small and medium-sized enterprises. International Federation of Accountants. Retrieved from http://www.ifac.org

Botha, M., Nieman, G., & Vuuren, J. V. (2006). Enhancing female entrepreneurship by enabling access to skill. Entrepreneurship Management, 479–493. IJMS 21 (1), 39–59 (2014)

Chandler, G. N., & Jansen, E. (1992). The founder’s self-assessed competence and venture performance. Journal of Business Venturing, 7(3), 223–236.

Chelliah, S., & Sulaiman, M. (2011). Acquiring international knowledge and experience: Internationalization of Small and Medium Enterprises (SMEs). International Journal of Management Studies, 18(2), 67–82.

Combs, J., Liu, Y., Hall, A., & Ketchen, D. (2006). How much do high-performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology, 59, 501–528.

D’Cruz, J., & Rugman, A. (1992). New concepts for Canadian competitiveness. Toronto: Kodak Canada.

Dyke, L. S., Fischer, E. M., & Reuber, A. R. (1992). An inter-industry examination of the impact of owner experience on firm performance. Journal of Small Business Management, 30(4), 72–87.

Gadenne, D. (1998). Critical success factors for small business: An inter-industry comparison. International Small Business Journal, 17(1), 36–55.

Gill, A., & Biger, N. (2012). Barriers to small business growth in Canada. Journal of Small Business and Enterprise Development, 19(4), 656–668.

Goles, T., Hawk, S., & Kaiser, K. M. (2008). Information technology workforce skills: The software and IT services provider perspective. System Information, 179–194.

Guzmán-Cuevas, J., Cáceres-Carrasco, R., & Riberio-Soriano, D. (2009). Functional dependence and productive dependence of SMEs. Small Business Economics, 32(3), 317–330.

Hager, P., Holland, S., & Beckett, D. (2002). Enhancing the learning and employability of graduates: The role of generic skills. The Business/ Melbourne: Higher Education Round Table.

Hair, J. F., Anderson, R. E., Tahtam, R. L., & Black, W. C. (2006). Multivariate data analysis (6th ed.). New Jersey: Pearson Prentice-Hall.

Holmes-Smith, P. (2006). Structural Equation Modeling: From the fundamentals to advanced topics. School of Research, Evaluation and Measurement Services.

Huck, J. F., & McEwen, T. (1991). Competencies needed for small business success: Perceptions of Jamaican entrepreneurs. Journal of Small Business Management, 29(4), 90–103.

Ibrahim, A. B., & Goodwin, J. R. (1986). Perceived causes of success and small business. Journal of Small Business, 11(2), 41–50. IJMS 21 (1), 39–59 (2014)

Jones, G. R., & George, J. M. (2008). Comtemporary management. Boston: McGraw Hill

Kaplan, J. M., & Warren, A. C. (2007). Patterns of Entrepreneurship (2nd ed.). USA: John Wiley and Sons.

Katz, R. L. (1955). Skills of an effective administrator. Harvard Business Review, 33(1), 33–42.

Kennedy, P. (2003). A guide to econometrics. Massachusetts: MIT Press.

Mahoney, J. (1995). The management of resources and the resource of management. Journal of Business Research, 33, 91–101.

Man, Thomas, W. Y., Theresa, L., & Chan, K. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing, 17, 123–142.

Montoya-Weiss, M., & Calantone, R. J. (1994). Determinants of new product performance: A review and meta-analysis. Journal of Product Innovation Management, 11, 397–417.

Mueller, R. O., & Hancock, G. R. (2010). Structural equating modelling white book. Retrieved from http://www.education.umd.edu

Nuthall, P. L. (2006). Determining the important management skill competences: The case of family farm business in New Zealand. Agricultural Systems, 88(2/3), 429–450.

O’Neal, M. A. (1985). Managerial skills and values: For today and tomorrow. Personnel, 62(7), 49–55.

Okpara, J. O., & Wynn, P. (2007). Determinants of small business growth constraints in a Sub-Saharan African economy. SAM Advanced Management Journal, 76–94.

Pallant, J. (2007). SPSS: Survival manual (3rd ed.). NSW, Australia: Allen & Unwin.

Pelham, A. (2000). Market orientation and other potential influences on performance in small and medium-sized manufacturing firms. Journal of Small Business Management, 38(1), 48–67.

Perren, L. (1999). Factors in the growth of micro-enterprises (part 1): Developing a framework. Journal of Small Business and Enterprise Development, 6(4), 366–385.

Peterson, T. O., & Van Fleet, D. D. (2004). The ongoing legacy of R. L. Katz an updated typology of management skills. Management Decision, 42(10), 1297–1308.

Petridou, E. N., & Charalambos. (2001). Designing training interventions: Human or technical skills training? International Journal of Training and Development, 185–195.

Prajogo, D. I. (2007). The relationship between competitive strategies and product quality. Industrial Management & Data System, 107(1), 69–83. IJMS 21 (1), 39–59 (2014)

Rahman, S., Mokhtar, S. B., Yasin, R. M., & Hamzah, M. I. (2011). Generic skills among technical students in Malaysia. Procedia Social and Behavioral Sciences, 15, 3713–3717.

Roscoe’s. (1975). The development of constitutional guarantees of liberty. Westport: Greenwood Press.

Rosman, M., & Mohd Rosli, M. (2013). Microcredit position in micro and small enterprise performance: The Malaysian case. Management Research Review, 36(5), 436–453.

Rudmann, C. (2008). Entrepreneurial skills and their role in enhancing the relative independence of farmers. Retrieved from http://orgprints. org

Santos, F. M., & Bode, C. S. (2012). The organizational foundations of corporate social entrepreneurship. Retrieved from http://www. insead.edu

Schans, K. (2012). SME Access to external finance. BIS Economics Report. UK: London Department for Business Innovation & Skill.

Sekaran, U. (2003). Research method for business: A skill building approach. United States: John Wiley & Sons.

Simpson, M., Tuck, N., & Bellamy, S. (2004). Small business success factors: The role of education and training. Education & Training, 46(8), 481–491.

SME Annual Report. (2012). Retrieved from http://www.smeinfo.com. my

Smith, B., & Morse, E. (2005). Entrepreneurial competencies: Literature review and best practices. Small Business Policy Branch, Industry Canada, Ottawa.

Spencer, L., & Spencer, S. (1993). Competence at work: Model for Superior Performance. New York: John Wiley & Sons.

Terry, F. (2005). Teaching entrepreneurial skills. In P. Reynolds, W. Bygrave, N. Carter, S. Manigart, C. Mason, G. D. Meyer, & K. G. Shaver (Eds.), Frontiers of entrepreneurship research (pp. 381–392). Wellesley, MA: Babson College.

Thompson, J. (2001). Strategic management (4th ed.). London: Thomson Learning.

Tushabonwe-Kazooba, C. (2006). Causes of small business failure in Uganda: A case study from Bushenyi and Mbarara towns. African Studies Quarterly, 8(4).

US Small Business Administration. (2013). Retrieved from http://www. sba.gov/home

Voola, R., & O’Cass, A. (2010). Implementing competitive strategies: The role of responsive and proactive market orientations. European Journal of Marketing, 44(1–2), 245–266. IJMS 21 (1), 39–59 (2014)

Wijewardena, H., & Cooray, S. (1995). Determinant of growth in small Japanese manufacturing firms: Survey evidence. Journal of Small Business Management, 33(4), 87–92.

Yang, C. H., & Huang, C. H. (2005). R & D, size and firm growth in Taiwan’s electronics industry. Small Business Economics, 25(5), 477–487.

Yasuda, T. (2005). Firm growth, size and behavior in Japanese manufacturing. Small Business Economics, 24(1), 1–15. IJMS 21 (1), 39–59 (2014)

Downloads

Published

30-06-2014

Issue

Vol. 21 No. 1 (2014): International Journal of Management Studies (IJMS) Vol. 21, No. 1 June 2014

Section

Articles

Research impact

Harvested 2026-09-08
0 citations recorded so far

Counts differ between services because each indexes a different body of literature. None of them is the whole picture.

Identifiers DOI 10.32890/ijms2014.21.1.3