Dynamic pathways to SMEs performance: Unraveling the influence of organizational learning capability, innovation, market dynamism and market responsiveness in an African emerging economy

ABSTRACT

This study explores the complex relationships among organizational learning capability (OLC), innovation, market dynamism, market responsiveness, and the performance of small and medium-sized enterprises (SMEs) in African emerging economies. Our research investigates the role of innovation as a mediator in the OLC-performance relationship, the moderated mediation impact of market dynamism, and the mediated moderation effect of market responsiveness in the indirect relationship. Using data from 225 SMEs from Ghana, and Hayes’s PROCESS bootstrapping procedure the findings confirm that innovation mediates the OLC-performance. Although, market dynamism does not moderate the OLC-innovation relationship, it moderates the indirect relationship between OLC and performance through innovation, with a stronger effect at high levels of market dynamism. Additionally, market responsiveness negatively moderates the innovation–performance relationship, but it amplifies the OLC-performance relationship via innovation, with a more pronounced effect at low levels of market responsiveness. The findings indicate that the OLC-performance relationship is not only complex but depend in firm-specific and external factors.

KEYWORDS:

• organizational learning capability
• innovation
• market dynamism
• market responsiveness
• performance
• SMEs
• Africa

Disclosure Statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Ahmed Agyapong

Ahmed Agyapong is an Associate Professor of Strategic Management at the Kwame Nkrumah University of Science and Technology (KNUST). He has published extensively in reputable journals, including the International Business Review, the Africa Journal of Management, and the International Journal of Emerging Markets. Ahmed serves as a reviewer for several journals and is currently an Associate Editor for the Journal of African Business. His research interest focuses on entrepreneurship and family businesses, strategic management, and supply chain sustainability. He is a member of the Africa Academy of Management (AFAM), the Academy of International Business, and the Academy of Management (AOM). Ahmed has held several managerial positions at KNUST, including Acting Dean of the KNUST School of Business, Deputy Director for the Institute of Distance Learning, and Chair of the Department of Marketing and Corporate Strategy. Ahmed is the current Dean of the School of Business KNUST.

Moses Acquaah

Moses Acquaah is a Professor of Management and Director of the PhD Program in Business Administration at the Department of Management in the Bryan School of Business and Economics, University of North Carolina at Greensboro (UNCG), and a Carnegie African Diaspora Fellow. He has published several articles in internationally recognized journals such as the Strategic Management Journal, Human Relations, Journal of Business Research, Africa Journal of Management, and Journal of Family Business Strategy. His current research focuses on strategic management, international management, entrepreneurship and family business, and supply chain sustainability.

Gladys E. Abiew

Gladys E. Abiew is a Human Resource Management lecturer at the Koforidua Technical University in the Department of Secretaryship and Management Studies and is currently pursuing her PhD in Human Resource Management at the Kwame Nkrumah University of Science and Technology (KNUST). Her research focuses on diversity, team innovation, mental health, employee well-being, sustainability, and employee dynamic capability. She is also passionate about special educational needs and disabilities (SEND) education and aspires to educate and support as many scholars who are going through this facet of life to bring as much relief to them as possible.

Hubert N. Zan

Hubert N. Zan doubles as the Assistant Manager in charge of Energy Efficiency Regulation, a unit under the Renewables and Energy Efficiency Directorate (REEE) of the Ghana Energy Commission, and an energy transformation expert. He has efficiently and effectively worked for over a decade enforcing national regulations on energy efficiency and environmental regulations on phasing out CFC-based and now HCFC-based refrigerators and air conditioners respectively in Ghana as well as phasing down HFC. His exhibition of leadership in managing regulatory affairs has fueled his passion to see the world generally and Africa in particular free of new inefficient and used obsolete appliances. He is described as a champion and strong advocate of energy efficiency by lobbying for the stopping of environmental dumping as well as improving organizational culture and behavior. Hubert holds a double Master of Science (MSC) degree in Energy and Sustainable Management as well as Strategic Management and Leadership. Both are from the Kwame Nkrumah University of Science and Technology (KNUST). He is the Chairman of the Local Trade Union Congress (TUC) of the Energy Commission.