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Determinants of small and medium enterprises with the interaction effect of managerial activities

Author

Listed:
  • Muhammad Asif Khan

    (School of Management, Huazhong University of science and technology Wuhan, China)

  • Marium Burki

    (Department of Public Administration, Gomal University, Dera Ismail Khan, Pakistan)

Abstract

The financial system and capital market in developed countries are more developed as compare to emerging countries. Firms like small and medium enterprise (SMEs) needs finance to operate their business and make a competitive position in the market. In an emerging country like Pakistan, SMEs face a lot of financial and non-financial obstacles that may relate to the poor performance of SMEs. This study investigates the relationship between commercial loans, retain earnings, trade credit, managerial activities, and SME's performance. This study also investigates the interaction effect of managerial activities between independent variables and dependent variables. A survey was conducted in a small and medium enterprise of KPK Pakistan. Data were collected from 362 employees. SPSS (Statistical Package for the Social Sciences) software was employed for data analysis for descriptive and regression analysis. The finding confirmed that commercial loans, trade credit, retained earning have a positive and significant impact upon SME's performance. It is also found that managerial activities have played a mediating role and increased the performance of SMEs. Among variables under study, the more trade credit activities, the higher the performance of the SMEs is observed. Based on this study's results, Leaders, supervisors, and managers are those employees having a substantial role in the performance, development, failure, and success of an organization. Managerial activities are vital for a manager for the purpose to know what should be done in different circumstances and improve overall performance and accomplish organizational goals. Key Words: Small and medium enterprise, Commercial loans, Trade credit, Managerial activities

Suggested Citation

  • Muhammad Asif Khan & Marium Burki, 2020. "Determinants of small and medium enterprises with the interaction effect of managerial activities," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 153-160, July.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:4:p:153-160
    DOI: 10.20525/ijrbs.v9i4.750
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    References listed on IDEAS

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