Managerial political competencies and the performance of small and medium-sized enterprises in South Africa

Abstract

Orientation: Research on managerial political competencies has progressed well in other organisational setups; but not so much in entrepreneurial ventures, yet literature documents the pivotal role played by political competencies in the performance of small and medium-sized enterprises (SMEs).Research Purpose: This study intended to find the impact of managerial political competencies on the performance of SMEs as measured by both innovation and return on investment (ROI) in SMEs in the Gauteng Province of South Africa.Motivation for the study: Regardless of the contribution done by SMEs in contemporary economies, and the fundamental role managerial political competencies play in sustaining these enterprises, no known study has been done among SMEs in South Africa.Research design, approach and method: The study employed an ex post facto correlational design that adopted a purely quantitative approach. The sample comprised of 211 owner/managers in Gauteng Province. Descriptive statistics and Spearman’s correlation were used for data analysis.Main findings: Owner/managers were found to be politically competent in the dimensions of social astuteness and networking abilities, but fared not so well on the apparent sincerity and interpersonal influence dimensions. It was also established that SMEs performed relatively better in terms of innovation compared to ROI, although ROI had greater potential to respond to improvements in the quality of managerial political competencies when compared to innovation . There was a statistically significant relationship between managerial political competencies and SME performance as measured by innovation and ROI.Practical/managerial implications: It is recommended that managerial political competencies be augmented internally through deliberate human resource development initiatives in order to leverage on them. It is also recommended that support structures and agencies that assist owner/managers in competency development be augmented at both provincial and government levels.Contribution/Value-add: The study attempts to fill the gap between research and practice regarding managerial political competencies in SMEs in South Africa.

Managerial conceptual competencies and the performance of small and medium-sized enterprises in Zimbabwe

“…The competencies referred to in the aforesaid study included planning and organising, scenario building, customer focus, strategic thinking and team work which happen to be so closely related to the conceptualisation of managerial conceptual competencies envisaged in the current study. Furthermore, the current study's findings corroborate an earlier study by Mashavira, Chipunza and Dzansi (2021) that also found a statistically significant relationship between managerial political competencies and enterprise performance.…”

“…Although Mashavira et al (2021) and Masoud and Al Khateeb (2020) used different sets of competencies to the one used in the current study, the relationship between managerial competencies (however defined) and performance seems to be supported empirically.…”

The impact of social and institutional networks in sustaining South African rural small, medium and micro enterprises during the crisis

“…Both Mashavira et al (2021) and Boudreaux et al (2019) emphasise the need to resolve local institutional constraints to create a sustainable environment for SMMEs.…”

“…In line with other developing countries, SA invested formally and informally in advancing legislation and building institutions to support SMMEs during local disasters or crises (Bhorat et al 2018;Kanyane 2008;Khumalo 2014;Mashavira, Chipunza & Dzansi 2021;Munyanyi, Munongo & Pooe 2021). Thus, lessons on how SA's rural-based institutions cope in the period Orientation: The coronavirus disease 2019 (COVID-19) and its subsequent variants, has exposed the ill-preparedness of Small, Medium and Micro enterprises (SMMEs) to grow and sustain themselves and, by extension, livelihoods after the pandemic induced socio-economic crises around the world.…”

“…Such disasters often seriously disturb local livelihoods and SMMEs. How local and rural-based institutions use formal and informal processes to overcome such disasters and sustain local SMMEs and, by extension, rural livelihoods is therefore very relevant (Korsgaard et al 2020;Mashavira et al 2021) to how local and global institutions can sustain SMMEs and livelihoods during the current disturbance to livelihoods caused by the COVID-19 pandemic. Bhorat et al (2018) have, in their recent paper, stated:…”