The Influence of Managerial Competencies on the Business Performance in the Small Business Funded by Jordan River Foundation

Abstract

Rapid changes in the business environment are associated with the development of managerial competencies within organizations. Small and medium enterprises (SMEs) are critical in the economic and social development of most countries. The relationship between managerial competencies and organizational performance remains an important issue within organizational literature. However, there were limited studies conducted to assess the relationship between managerial competencies and organizational performance on small and medium enterprises. For this reason, this study aimed to determine whether there is a significant relationship between managerial competencies and the business performance in the small businesses funded by the Jordan River Foundation in Jordan. The empirical approach consists of data collection through the use of a self-administered questionnaire in a survey. A structured questionnaire was administered to 220 managers of small businesses funded by the Jordan River Foundation to establish the influence of their managerial competencies on the performance of their businesses. A total of 176 questionnaires were retrieved and analyzed by using the SPSS program for the statistical analysis, to reach the results of this study. The results revealed that managerial competencies are significantly correlated to business performance. There is a significant relationship between managerial competencies (Communication, Planning, and organizing) and efficiency. Three assortments of managerial competencies were evident to influence sales, namely, communication, planning and organizing, and customer focus. There is a significant relationship between managerial competencies (communication, team building, and customer focus) and customer satisfaction. The result will help the managers on how their competencies support and contribute to the firm's overall success as well as their improvement in the organization.

Keywords: Managerial competencies, business performance, small businesses, Jordan River Foundation.

DOI: 10.7176/EJBM/12-20-06

Publication date:July 31^st 2020