Human capital and micro-business performance: the effective roles of bricolage and technology adoption in times of crises

Abstract

PurposeThis study develops and tests a model that explores how human capital impacts micro-business performance through the sequential mediation of new technology adoption and entrepreneurial bricolage.Design/methodology/approachA cross-sectional study was conducted on 508 women entrepreneurs engaged in micro-businesses in Malaysia. This study used partial least squares structural equation modeling to test the hypotheses.FindingsThis study demonstrates the significant impact of human capital on micro-business performance. It establishes a sequential mediation model in which technology adoption and entrepreneurial bricolage mediate the nexus of human capital–micro-business performance.Research limitations/implicationsThis study contributes to the theory by innovatively integrating human capital, new technology adoption, entrepreneurial bricolage, and microbusiness performance, drawing on the resource-based view and human capital theory. However, its cross-sectional nature limits causal inference, and focusing solely on women entrepreneurs in Malaysian micro-businesses may constrain novelty. Additionally, the reliance on self-reported data introduces bias, emphasizing the need for future research.Practical implicationsFostering entrepreneurial bricolage and embracing technology adoption can enhance performance. Business managers can optimize strategies by promoting continuous learning, innovative problem-solving, and technological advancements.Social implicationsThis study highlights the potential social and economic impacts of supporting women-owned micro-businesses in Malaysia. Policymakers can promote economic growth, employment, and community well-being by emphasizing innovation, human capital development, and technology adoption in Malaysia’s diverse ethnic contexts.Originality/valueThis study introduces a distinctive serial mediation framework to understand the impact of human capital on micro-business performance. It explores mediation dynamics, extends the knowledge of serial mediation in the human capital-performance relationship of microbusinesses, and contributes to the unexplored roles of technology adoption and entrepreneurial bricolage in Malaysian micro-businesses.