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

Abstract

Background: Literature is replete with evidence on the impact of managerial competencies on firm performance. Yet, there is minimal evidence on how managerial conceptual competencies in particular, affect the performance of small and medium enterprises (SMEs) in Zimbabwe. Aim: The current study was meant to find the impact of managerial conceptual competencies on the performance of SMEs in Zimbabwe’s Harare Province. Setting: The under-exploration of the relationship between managerial conceptual competencies and SME performance, in an economy that at present is highly informalised, provides a platform for further exploration of this phenomenon. Methods: The study adopted a purely quantitative approach that employed a structured direct survey design. Results: The study established that owners and/or managers had reasonable levels of conceptual competencies and that SMEs performed fairly well in terms of both innovation and return on investment (ROI). It was found out that statistically significant relationships existed between managerial conceptual competencies and SME performance when measured by innovation and ROI. Conclusion: In view of the results, it can be concluded that the performance of SMEs in terms of innovation and ROI can be influenced, to some extent, by owner and/or managers’ conceptual competencies.