
Managerial capabilities and firms' sustainable performance: Evidence from Chinese manufacturing small and medium-sized enterprises
Author(s) -
Seare Asfaha Sebhatu
Publication year - 2021
Publication title -
frontiers in management and business
Language(s) - English
Resource type - Journals
ISSN - 2717-5340
DOI - 10.25082/fmb.2021.01.002
Subject(s) - dynamism , dynamic capabilities , business , industrial organization , small and medium sized enterprises , process (computing) , marketing , knowledge management , process management , computer science , physics , finance , quantum mechanics , operating system
This research seeks to address small and medium-sized enterprises (SMEs)’ performance problems by linking dynamic managerial capabilities to firm performance. In today’s dynamic market environment, it is vitally important for managers/owners of SMEs to possess dynamic capabilities. This study limited its focus to three managerial capabilities namely networking, sensing, and innovation with the moderating role of market dynamism. The data collection process and analysis provided findings that revealed that Chinese SME managers/owners effectively employ managerial capabilities in managing their firms. The hypotheses tests resulted in significant positive relationship between the main variables and performance. The moderating variable, however, had a significant effect only on moderating the relationship between sensing capabilities and performance. The findings from this study suggest that SMEs need to improve their knowledge and application of managerial capabilities in transforming their business performance thereby contributing to the national economy. This study contributes to the dynamic capabilities’ literature by adding to the existing research on the subject. It also provides an understanding of how dynamic capabilities are deployed to build up a solid and sustainable firm performance that resists the waves of market upheavals and it is expected to greatly benefit theory, policy and practice.