IDEAS home Printed from https://ideas.repec.org/a/eme/sefpps/sef-10-2015-0236.html
   My bibliography  Save this article

Linking distinctive management competencies to SMEs’ growth decisions

Author

Listed:
  • Ahmad Raza Bilal
  • Muhammad Naveed
  • Farooq Anwar

Abstract

Purpose - The purpose of this study is to conduct a comparative analysis of the short- and long-term financial strategies to augment SMEs’ performance in emerging markets. Using a resource-based theoretic perspective; the analysis has investigated the mediating role of distinctive management competencies (DMCs) between efficient financial strategies and SMEs’ business growth. Design/methodology/approach - The empirical data were drawn from a cross-industrial panel of 273 SMEs from Spain and 224 SMEs from Pakistan across all manufacturing sectors over the period of 2006-2013. Multivariate tests are conducted to estimate the impact of efficient financial strategies on SMEs’ performance. The advanced mediation version of Kenny and Judd (2013) is used to test mediation confirmation of DMCs; while Sobel test is applied to examine robustness of mediation results. Findings - The robustness check of 497 privately held SMEs confirmed that practicing efficient financial strategies has significant influence on SMEs’ performance. Stimulatingly, mediating effect of DMCs, that are used for executives’ prudent financial decisions have been traced in both respondent countries. Based on the findings, it is argued that efficient financial strategies realistically translate into DMCs, which taken together are likely to lead more effective and significant to improve SMEs’ performance. Research limitations/implications - The results suggest that power of distinctive managerial decisions is a crucial factor in the employment process besides efficient financial strategies identified in previous studies. The results of this study are of great importance to managers and major stakeholders, such as investors, creditors, financial analysts and policymakers, to inflate their efforts to reduce the incidence of business failure and for survival and growth of SMEs. Originality/value - The paper raises a new theoretic explanation by determining the intervening role of DMCs in translating EFS into improved SMEs’ performance, thereby supplementing the extant theories.

Suggested Citation

  • Ahmad Raza Bilal & Muhammad Naveed & Farooq Anwar, 2017. "Linking distinctive management competencies to SMEs’ growth decisions," Studies in Economics and Finance, Emerald Group Publishing, vol. 34(3), pages 302-330, August.
  • Handle: RePEc:eme:sefpps:sef-10-2015-0236
    as

    Download full text from publisher

    File URL: http://www.emeraldinsight.com/10.1108/SEF-10-2015-0236?utm_campaign=RePEc&WT.mc_id=RePEc
    Download Restriction: Access to full text is restricted to subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:sefpps:sef-10-2015-0236. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.emerald.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Virginia Chapman (email available below). General contact details of provider: http://www.emerald.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.