The influence of absorptive capacity and networking capabilities on small and medium enterprises

Southern African Journal of Entrepreneurship and Small Business Management

Field Value
Title The influence of absorptive capacity and networking capabilities on small and medium enterprises
Creator Munyanyi, Watson Pooe, David
Subject Business management Absorptive capacity; networking capabilities; customer relational capabilities; small- and medium-sized enterprises; SME; dynamic capabilities; dynamic capability theory.
Description Background: In response to the ever-growing complexity in the business environment that has resulted from the dramatic technological transformation, businesses have altered the way they conduct business. The influence of the external business environment is increasing in significance, rendering traditional methods of operating business outdated and forcing the adoption of new methods.Objective: The aim of this study is to investigate how organisational capabilities influence small and medium enterprises’ (SMEs) operational performance (OP), by specifically looking at absorptive capacity (ACAP), networking capabilities (NCs) and customer relational capabilities (CRCs).Setting: This study was conducted in Zimbabwe and was spread across the 10 provinces, focusing on 388 randomly selected SMEs.Methods: Data were collected through self-administering questionnaires to respondents, using the drop-off or pickup technique and making telephonic follow-ups to increase the response rate. Analysis of the data in this study was largely quantitative in nature and it was performed using a two-step structural equation modelling approach.Results: The results of the study indicate that CRCs lead both ACAP and NCs to improve OP.Conclusion: This study enlightens both SMEs’ managers and policymakers on the significance of capabilities, as opposed to resources, in the growth of the SMEs sector. In light of the results, it is imperative that firms orientate themselves to embrace networking and ACAP as central tenets of their day-to-day operations while attending to customers timely and innovatively.
Publisher AOSIS Publishing
Date 2019-10-07
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — Survey
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/sajesbm.v11i1.231
Source The Southern African Journal of Entrepreneurship and Small Business Management; Vol 11, No 1 (2019); 10 pages 2071-3185 2522-7343
Language eng
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Rights Copyright (c) 2019 Watson Munyanyi, David Pooe