Performance Implications of The Absorptive Capacity of Small Businesses in A Developing Economy
DOI:
https://doi.org/10.31098/ijmesh.v5i2.979Abstract
The role of small businesses in the socioeconomic development of nations has been well established. Despite this, the failure rate of small businesses in developing economies remains high. Much of this stems from poor performance levels on the part of small businesses which is often exacerbated by the continued flux and disruptions in the business environment. Recognising the importance of astute responsiveness to the dynamic business environment, this study investigates whether absorptive capacity can energise small business performance. The study employed the partial least squares structural equation modelling technique and multiple regression analysis to analyse data collected from an effective pool of 685 small business owners/managers. The results affirm that absorptive capacity has a positive though a weak relationship with small business performance. Interestingly, when the absorptive capacity construct was disaggregated, it was insightful to note that not all its components bear statistically significant relationships with small business performance. Specifically, the relationships between small business performance and the component factors of assimilation and exploitation were statistically supported. In contrast, the factors of acquisition and transformation have no statistically significant relationship with small business performance. The finding has important implications for practitioners and researchers as it illuminates specific components of absorptive capacity that deserve higher investments in the quest for improved small business performance.
Keywords: Absorptive capacity; Entrepreneurship; Small business; Performance
Downloads
Downloads
Article Metrics
- 0 times
- 0 times
Published
Citation Check
How to Cite
Issue
Section
License
Copyright (c) 2022 Chukuakadibia Eresia-Eke, Ubochioma Udo S. Osuigwe
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright Notice: 1. License
International Journal of Management, Entrepreneurship, Social Science and Humanities has CC-BY NC or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work for non-commercial purpose. The non-commercial use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution-NonCommercial 4.0 International License
Creative Commons License
2. Author’s Warranties
The author warrants that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User Rights
International Journal of Management, Entrepreneurship, Social Science and Humanities objective is to disseminate articles published are as free as possible. Under the Creative Commons license, this journal permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to attribute authors and this journal on distributing works in the journal.
4. Rights of Authors
Authors retain the following rights:
Copyright, and proprietary rights relating to the article, such as patent rights,
The right to use the substance of the article in future own works, including lectures and books,
The right to reproduce the article for own purposes,
The right to self-archive the article,
the right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal (International Journal of Management, Entrepreneurship, Social Science and Humanities).
The author has a non-exclusive publishing contract with a publisher and the work is published with a more restrictive license, the author retains all the rights to publish the work elsewhere, including commercially, because she/he is not subject to the conditions of her / his own license, regardless of the type of CC license chosen.
5. Co-Authorship
If the article was jointly prepared by other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.
6. Termination
This agreement can be terminated by the author or International Journal of Management, Entrepreneurship, Social Science and Humanities upon two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of International Journal of Management, Entrepreneurship, Social Science and Humanities.
7. Royalties
This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by This agreement can be terminated by the International Journal of Management, Entrepreneurship, Social Science and Humanities upon two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of International Journal of Management, Entrepreneurship, Social Science and Humanities or its sublicensee.
8. Miscellaneous
International Journal of Management, Entrepreneurship, Social Science and Humanities will publish the article (or have it published) in the journal if the article’s editorial process is successfully completed and International Journal of Management, Entrepreneurship, Social Science and Humanities or its sublicensee has become obligated to have the article International Journal of Management, Entrepreneurship, Social Science and Humanities may conform the article to a style of punctuation, spelling, capitalization, referencing and usage that it deems appropriate. The author acknowledges that the article may be published so that it will be publicly accessible and such access will be free of charge for the readers.
Privacy Statement
The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.Article Index
