The moderating effect of demographic characteristics on the relationship between strategic capabilities and firm performance in women‐owned entrepreneurial ventures in Nairobi, Kenya

Abstract

This study is motivated by the need to understand the determinants of performance in women-owned enterprises. We examine the relationship between strategic capabilities and firm performance with demographic characteristics as moderators in women-owned enterprises in Nairobi, Kenya. Results show that strategic capabilities have a significant effect on the overall performance. Further, IT capabilities and technological capabilities have a positive and significant relationship with performance. Only age has a negative and significant moderating effect. We recommend enhancement of technological capabilities among women entrepreneurs so that they can better direct their capabilities toward firm performance.

Work-Family Balance and Marketing Capabilities as Determinants of Chinese Women Entrepreneurs' Firm Performance

“…Previous research has shown that the lack of management skills and functional business skills can be an obstacle in running a business (Leibestein, 1968;Lerner & Haber, 2001). Management skills have also been found by numerous researchers to be positively related to firm performance (Mari et al, 2016;Prasad et al, 2013;Rey-Marti, Porcar, & Mas-Tur, 2015;Staniewski, Janowski, & Awruk, 2016), although, as in the previous case, some studies point to a lack of such a relationship (Kimosop et al, 2016). By achieving an adequate level of management skills to manage her business, the woman entrepreneur will most likely increase the chances for her business to be successful (Lerner et al, 1997;Buttner, 2001;Huarng et al, 2012;Mitchelmore & Rowley, 2013).…”

“…Shi and Dana (2013) found that the socialization patterns of second-generation, small to medium Chinese family businesses' owner-managers have a significant effect on the entrepreneurship processes in the business, which reflects the relationship between market orientation and entrepreneurship. Kimosop et al (2016) found that marketing capabilities have a significant and positive effect on the performance of firms managed by women entrepreneurs in the emerging economy of Kenya. They suggest that, for women to improve their firms' performance, they must build on marketing capabilities.…”

“…The level of marketing capabilities is measured through a woman entrepreneur's ability to move her business across market boundaries and seize opportunities (Kimosop et al, 2016). One of the objectives of marketers is to determine whether to target global markets or to pursue localized campaigns, and these decisions are frequently determined by the national culture (Durvasula & Lysonski, 2016).…”

“…Despite the increasing number of studies that have been undertaken on women entrepreneurship, there has been little research on performance of womenowned businesses, particularly in the context of emerging economies (Bardasi, Sabarwal, & Terrell, 2011;Lerner, Brush, & Hisrich, 1997). There are a few exceptions (Aterido & Hallward-Driemeier, 2011;Gutiérrez, del Mar Fuentes, & Ariza, 2014;Kimosop, Korir, & White, 2016;Prasad, Naidu, Murthy, Winkel, & Ehrhardt, 2013;Ramadani, 2015).…”

“…The work-family balance dimension is frequently listed as one of the most important factors affecting performance of businesses owned and managed by women entrepreneurs, particularly in emerging economies (Kim & Ling, 2001;Loscocco & Bird, 2012;Ramadani, 2015;Ramadani, Gërguri, Dana, & Tašaminova, 2013;Rehman & Roomi, 2012;Shelton, 2006). Similarly, marketing capabilities are listed among the critical determinants of firm performance (Bianchi, 2011;Farley, Hoenig, Lehmann, & Nguyen, 2008;Kimosop et al, 2016).…”