Second International Conference on Advances in Social Science, Economics and Management Study - SEM 2014
Author(s) : NALEDI MAKHALEMELE, PATIENT RAMBE
This study examines the relationship between managerial competencies of manager/owners and the performance of emerging internet firms in the Mangaung Metropolitan Municipality in the Free State region, South Africa. Despite the growing body of literature on the impact of specific entrepreneurial traits of managers/owners on the performance of small firms in developed economies, little is known about the contribution of managerial competencies of managers/owners of emerging internet firms to the success of these firms in emerging African economies. Since the Global Entrepreneurial Monitor South Africa Reports (2010, 2012, 2013) attribute the failure of most emerging businesses (i.e. in their first three years of existence) to the “managerial competency problem,” an investigation into the effects of managerial competencies on the performance of small emerging internet businesses is critical to locating the strategic levers that potentially optimise the growth and sustainability of these businesses in emerging economies. The study drew on extant literature and the researchers’ reflective experiences to develop a conceptual model on the relationship between managerial competencies of owners/managers of small internet cafés and the performance of these firms. The model suggests that an assortment of managerial competencies (innovative capabilities, market management capabilities, human capital requirements-technical knowledge, skills, abilities, as well as financial literacy, strategic planning/ forecasting and marketing mix) is critical to the improved performance and survival of small internet businesses. Understanding the appropriate constitution of managerial competencies ideally suited for emerging technology firms, innovation based and entrepreneurship-driven improvements of the organisational context of emerging technology firms including the broader business environment would positively impact small internet business performance (i.e. growth, profitability, and sustainability).