The effect of organisational capability on SMe performance in Ghana: the moderating role of environmental characteristics.

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August, 2016
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The study sought to find out the moderating effect of environmental characteristics and organizational capability on SMEs performance. The design of the study was a descriptive survey research design. The populations consisted of all SMEs in the Obuasi. Samples were drawn from SMEs in the Obuasi Municipality of the Ashanti Region. The respondents consisted of SME owners who have been in business for six (6) months and above. A purposive and convenient sampling procedure was used. A questionnaire measuring organizational capability, environmental characteristics and performance were administered to the respondents. Data was analyzed using Pearson Product-Moment correlation coefficient and hierarchical multiple regression analysis. It was observed after the study that there is a significant positive relationship between organizational capability dimensions and Performance dimensions. Similar results were observed for environmental characteristics dimensions and performance dimensions. Further the study found an interaction effect of managerial dimension of organizational capability and dynamism was not significant. The outcome of the study was discussed and recommendations made accordingly. Firstly, SMEs must be encouraged to employ organizational capability strategies such as innovation, marketing and managerial skills to enhance their performance. Secondly, SMEs must be empowered to keep up to date with competitive dynamism and intensity to enable them adopt appropriate strategies needed to survive competitions to boost their performance. Further, SMEs should be educated and made aware of these vital and critical strategies necessary for their performance increase. Finally, the government of the day should endeavor to create an enabling environment that would be truly conducive for business organizations to thrive without engaging in any act of fraudulent practices.
A Thesis Submitted to the Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology, Kumasi in Partial Fulfilmentof the Requirement for the Degree Of Master of Business Administration (Strategic Management and Consulting -Option) KNUST School of Business College of Humanities and Social Sciences,