The moderating role of infrastructure facility on the relationship between organizational capability and performance

• Main Author: Salisu, Balarabe
• Format: Thesis
• Language: English; English
• Published: 2018
• Subjects: HD58.9 Organizational Effectiveness.
• Online Access: https://etd.uum.edu.my/7977/1/s900653_01.pdf; https://etd.uum.edu.my/7977/2/s900653_02.pdf; https://etd.uum.edu.my/7977/
• Institution: Universiti Utara Malaysia

The role of SMEs in the economic development of the country is well established as the sector is the bedrock of entrepreneurship and innovation which is normally driven by individual creativity that leads to job creation, poverty reduction, wealth creation, income distribution and reduction in income disparity. The low performance and low survival rate of Small and Medium Enterprises (SMEs) deny their potential valuable contribution to an economy. SMEs fail to perform up to the expectation as a result of particular constraints that are related to inadequate and non- functional infrastructure facility to support their operations, inability to innovate, lack of marketing capability, non-application of strategic capability and lack of learning capability. A randomly selected sample of 235 manufacturing SMEs in Nigeria were analysed using Partial Least Squires Structured Equation Modelling (PLS-SEM) method. Results supported the hypothesized direct effects of innovation capability, marketing capability, strategic capability and learning capability on performance of manufacturing SMEs in Nigeria. In addition, infrastructure facility moderated these relationships. Specifically, there is positive moderating effect of infrastructure facility on the relationship between innovation capability, marketing capability, strategic capability, learning capability and performance of manufacturing SMEs in Nigeria. Furthermore, infrastructure facility have a significant moderating on the path between IC and performance, MC and performance, SC and performance, LC and performance. In general, these findings supported the view that Organizational capability has positive influence on performance. The results of this study provide an important insights to owners, policy-makers and researchers to understand the effects of Organizational capability on SMEs performance. The outcome of the study also provides that organizational capability and firm performance depends on the availability of infrastructure facility, this study also presents a methodological contribution to the literature of SMEs performance through identifying validity and reliability of the adapted measures in the different context (Nigerian context.).