Effect of Organizational Capabilities on Performance of Micro and Small Family Businesses in Ghana: The Moderating Role of Environmental Characteristics

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September, © 2016
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The rationale of the study is to examine the moderation role of competitive intensity on organizational capabilities (marketing and managerial) as a measure of business performance. Data was collected from 196 micro and small family business firms in Ghana. The hierarchical regression model was used to analyze the hypotheses of the study. The findings of the study indicate that, irrespective of the competitive intensity in the business environment, micro and small family businesses that adapt marketing and managerial capabilities will always outperform industry players. Thus, there is a direct relationship between organizational capabilities and organizational performance (financial and operational). This result was achieved after firm age, firm size and industry sector were used as control variables. The moderating interaction was insignificant therefore family businesses are being encouraged to enforce best marketing and managerial capabilities to achieve superior return on investments and return on sales. To achieve this result, quantitative data and subjective results were used to analyze the data with LISREL 8.5 and SPSS 16.0. Limitations of the study were centered on the survey conducted only in Ghana. The conclusion and recommendations focused on micro and small family business owners in adapting marketing and managerial capabilities within the turbulent industry competitiveness to achieve outstanding financial and operational performance within the industry sector.
A thesis submitted to the Department of Marketing and Corporate Strategy of the Kwame Nkrumah University of Science and Technology in partial fulfillment of the award of the degree of Master of Business Administration.