Influence of Internal Capabilities on the Performance of Micro and Small Enterprises (MSEs) in Mogadishu, Somalia
DOI:
https://doi.org/10.47604/ijfa.2189Keywords:
Internal Capabilities, Performance, Micro and Small EnterprisesAbstract
Purpose: The main aim of this study was to determine the influence of internal capabilities on the performance of Micro and Small Enterprises (MSEs) in Mogadishu, Somalia
Methodology: The research paper adopted a descriptive research design. The target population in this study was undefined given that the number of MSEs in Mogadishu, Somalia operate under no regulatory framework. The researcher used snowballing sampling techniques, where one MSEs was requested to introduce the researcher to another MSE until the sample size of 120 MSEs was reached. The collected data was then subjected to analysis using descriptive and inferential statistics. The researcher included statistical tools such as SPSS and MS Excel to provide a comprehensive description of the data. The findings were presented using tables.
Findings: The findings revealed that financial, marketing and HR capabilities had a positive and significant influence on performance of MSEs in Mogadishu, Somalia. Where, financial capabilities (β=0.547) had the highest statistical influence, followed by marketing capabilities (β=0.428) and lastly HR capabilities (β=0.415).
Unique Contribution to Theory, Practice and Policy: The study recommended that owners of Micro and Small Enterprises (MSEs) prioritize investing in skill training and the recruitment of expert professionals to bolster the knowledge base and capabilities of their enterprises. The study findings discuss a deeper understanding of the determinants of MSE performance, and how this knowledge can be translated into targeted actions by business owners, policymakers, and other stakeholders. This not only supports the practical application but also illustrates its value in informing policies that promote the growth and sustainability of MSEs in the region.
Downloads
References
Abdinur, M. A., & Karcioglu, R. (2023). Factors Affecting the Adoption of Accounting Information System in Small Medium Enterprises in Somalia.
Adan, A. O. S., & Kising’u, T. M. (2018) Factors Influencing Micro and Small Business Enterprises’ Performance In Mogadishu, Somalia.
Alene, E. T. (2020). Determinants that influence the performance of women entrepreneurs in micro and small enterprises in Ethiopia. Journal of Innovation and Entrepreneurship, 9, 1-20.
Ali, A. Y. S., & Isak, A. O. (2019). Financial management practices and financial performance of service companies in Somalia. Financial Management, 10(4).
Chiarelli, A. (2021). The impact of dynamic capabilities and market orientation on firm performance: a case study of higher education consulting firms.
Engidaw, A. E. (2021). Exploring internal business factors and their impact on firm performance: small business perspective in Ethiopia. Journal of Innovation and Entrepreneurship, 10(1), 1-17.
Gichichi, S. M., Mukulu, E., & Otieno, R. O. (2019). Influence of Market Conditions and Performance of Coffee Smallholders’ Micro and Small Agribusinesses in Murang’a County, Kenya.
Ibrahim, A. A. (2020). Logistics Outsourcing Practices and Performance of Small and Medium Enterprises in Mogadishu, Somalia (Doctoral dissertation, University of Nairobi).
Ismail, R. (2018). The impact of human capital and innovation on labour productivity of Malaysian small and medium enterprises. International Journal of Productivity and Quality Management, 25(2), 245-261.
Jeilani, (2019) A. An exploratory study of the factors influencing business performance among micro-business owners in Mogadishu–Somalia.
Kiros, Y. (2020). Loan repayment performance of micro and small enterprises: Evidence from Somali Region, Ethiopia. Developing Country Studies, 10(9), 1-13.
Mahadalle, A., & Kaplan, B. (2017). Entrepreneurial characteristics and competencies as determinants of corporate performance: A study on small enterprises in Mogadishu, Somalia. International Journal of Research-Granthaalayah, 5(5), 243-254.
Morgan, N. A., Feng, H., & Whitler, K. A. (2018). Marketing capabilities in international marketing. Journal of International Marketing, 26(1), 61-95.
Moses, A., & Sharma, A. (2020). What drives human resource acquisition and retention in social enterprises? An empirical investigation in the healthcare industry in an emerging market. Journal of Business Research, 107, 76-88.
Riswanto, A. (2021). Competitive intensity, innovation capability and dynamic marketing capabilities. Research Horizon, 1(1), 7-15.
Teece, D. J. (2018). Dynamic capabilities as (workable) management systems theory. Journal of Management & Organization, 24(3), 359-368.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Ahmed Abass Mohamed
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
