Relationship Between Managerial Competencies Of Owners / Managers Of Emerging Technology Firms And Business Performance: A Conceptual Framework Of Internet Caf Performance In South Africa

Abstract

Despite the growing literature on the impact of entrepreneurial traits of managers/owners on the performance of small firms in developed economies, little is known about the contribution of managerial competencies (MC) of these managers/owners to the success of their firms. Since entrepreneurial literature attributes the failure of most emerging businesses (i.e. in their first three years of existence) to the paucity of MC among managers/owners of emerging businesses, an investigation into the effects of these 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. This theoretical study, therefore, examines the relationship between managerial competencies of owners/ managers and the performance of emerging internet firms in South Africa. Extant literature and researchers reflective experiences were used to develop a conceptual model on the relationship between managerial competencies of managers/owners of small internet caf and the performance of their firms. The model suggests that an assortment of managerial competencies (human capital requirements, resources and individual capabilities) is critical to the improved performance of small internet businesses. The thesis of this paper is that understanding the appropriate constitution of managerial competencies ideal for emerging technology firms, organisational context of emerging technology firms including the broader business environment would positively impact small internet business performance.