Ahmed Agyapong

The Relationship between Competitive Strategy and Firm Performance in Micro and Small Businesses in Ghana: The Moderating Role of Managerial and Marketing Capabilities

This study investigates the role of managerial and marketing capabilities in moderating the relationship between competitive strategy and firm performance using data from 581 micro and small businesses (MSBs) in Ghana. Using a hierarchical multiple regression analysis the findings indicate that while differentiation strategy is related to performance, cost leadership strategy does not influence performance after controlling for several firm-specific factors. The findings further show that both managerial capability and marketing capability moderate the relationship between competitive strategy (cost leadership and differentiation) and performance for MSBs in Ghana. However, managerial capability strengthens the influence of cost leadership strategy on performance, while it weakens the impact of differentiation on performance. Moreover, marketing capability augments the impact of differentiation on performance, while it diminishes the influence of cost leadership on performance. The findings indicate a contingency approach to the implementation of competitive strategy by MSBs.

Competitive strategy and performance of family businesses: moderating effect of managerial and innovative capabilities

The study examines how managerial and innovative capabilities moderate the relationship between competitive strategies and performance using data from 265 micro and small family firms in a developing economy – Ghana. We argue that in spite of challenges associated with small and micro family firms; they can build on available organizational capabilities to draw out superior gains from their strategic operations. The strategic behavior of the sampled family firms was examined using Porters generic typologies. The results of the study were mixed and interesting. The findings indicate that a small and micro family firm looking to pursue either low-cost position or differentiation should focus on building strong internal managerial capabilities. Meanwhile, highly innovative family firms looking to build on competitive strategies should consider focusing on differentiation strategy than on cost leadership strategy.

Nexus between social capital and performance of micro and small firms in an emerging economy: The mediating role of innovation

Abstract The purpose of this study was to examine the relationship among social capital, innovation, and performance of micro and small businesses (MSBs) in emerging economies using data from a sub-Saharan African Country—Ghana. Specifically, the study sought to examine the mediating role of innovation in the relationship between social capital and performance. The study relied on a survey design and a cross-sectional data collected with the aid of questionnaire from 500 MSBs operating in the Ashanti Region of Ghana. The scales and measures of the study were validated using confirmatory factory analysis in LISREL 8.50, while the study’s proposed model was estimated using ordinary least square regression analysis in SPSS 20. The following results were obtained: (1) social capital positively influenced performance, (2) there is positive relationship between innovation and performance, (3) social capital has a positive effect on innovation, and (4) innovation was observed to partially mediate the relationship between social capital and performance. The results indicate the important role social capital and innovation play in the success of MSBs in emerging economies and the fact that managers and owners of such businesses need to pay attention to these concepts and use them to their advantage.

The effect of corporate social responsibility on organizational commitment of employees of rural and community banks in Ghana

Abstract Researchers have mostly focused on the effect of corporate social responsibility engagement on customer behaviour. In this paper, an attempt is made at assessing the effect of corporate social responsibility engagement on employee commitment to their organizations. A self-reported questionnaire was used to collect the data from 145 employees of 50 Rural and Community Banks (RCBs) across Ghana. The study found a strong positive relationship between engagement in corporate social responsibility and employee commitment. Engagement in corporate social responsibility explained 54.1% of the total variation on employee commitment. However, this relationship is insignificant when educational level and years of working with the bank is controlled for. Gender however does not confound this relationship. This must inform decision-making regarding the planning and implementation of CSR strategies in organizations. It is acknowledged that having particular concern for the welfare of employees will boost the employee’s commitment and by extension, their performance and ultimately the growth of the Organization.

Leadership in Ghana

This chapter focuses on culture and its effect on leadership styles in Ghana. A brief background and history of Ghana is first provided then the cultural landscape of Ghana and its impact on leadership styles and effectiveness is discussed. Ghana managers are likely to adopt a paternalistic leadership style, influenced by the traditional rule system where the chief is seen as the father of the community. Ghana managers and leaders in a work organization are also expected to make decisions that will benefit the organization and employees without necessarily involving employees in the decision-making process. Overall, findings of a qualitative study, including the Delphi technique and focus groups, suggests that participants viewed an effective leader as being achievement and results-oriented, focused, committed, courageous, hardworking, and having integrity. Unexpected results of leadership also suggest that a gender of the leader, in particular being male, religion and spirituality, and a sense of humor are important factors in leadership effectiveness. Finally, both foreigners and locals perspectives on issues associated with leadership are also presented in the chapter.

Examining the effect of perceived service quality of health care delivery in Ghana on behavioural intentions of patients: The mediating role of customer satisfaction

ABSTRACT The purpose of this study was to examine the mediating role of patients’ satisfaction in the relationship between perceived service quality (PSQ) and behavioural intentions. Data were collected from 178 patients selected from 35 health facilities in Ashanti Region of Ghana. A structural equation modelling technique was employed in estimating the proposed model using LISREL 8.5 and inter-construct correlation conducted in SPSS 16.0 to preview the associations among main constructs. Perceive service quality was positively and significantly related to both patients’ satisfaction and behaviour intentions which was also influenced by patient satisfaction in healthcare. The study confirmed the mediating role of satisfaction in the link between PSQ and behaviour intentions in healthcare. Based on these findings, it was suggested that, hospital managers must design patient-centered strategies to meet clients’ expectation and emphasizing both the technical and functional competence of the service providers to better serve their customers. The study has contributed to the literature by establishing the direct effect of service quality on behaviour intentions among patients and also establishing the indirect effect of service quality on behaviour intentions of patients through customer satisfaction.

Mediating role of internal communications in market orientation and performance of mobile telecom firms: Evidence from Ghana

Abstract The relationship between market orientation and firm performance and mediating influence of many external factors has been researched extensively across various contexts. However, little focus has been on mediating roles of internal organisational variables such as internal communication, which could potentially channel the effects of market orientation on performance. And this was examined using questionnaire survey of 95 managers from all the telecommunication companies in Ghana. Results show internal communication as a conduit, fully transmitting the positive effects of each dimension of market orientation on market performance. Therefore, enhancement of internal communication could offer unique capabilities for significant market performance.

The Direct and Indirect Effects of Innovative Capability on Firm Performance: Evidence from Micro and Small Family Businesses in Ghana

This chapter examines how innovative capability influences performance directly and indirectly through competitive strategy in family businesses. We used data from 321 micro and small family businesses in Ghana and the bootstrap procedure suggested by Preacher and Hayes (2008: Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods, 40, 879–891) to test our hypotheses. The findings indicate that innovative capability directly influences the performance of micro and small family businesses. However, the mediation analyses show that only the competitive strategy of differentiation mediates the relationship between innovative capability and performance. We found no relationship between cost leadership strategy and the performance of micro and small family businesses in Ghana. Implications are discussed.

ANTECEDENTS TO THE IMPLEMENTATION OF HYBRID STRATEGY IN A DYNAMIC BUSINESS ENVIRONMENT — AN ECONOMETRIC ANALYSIS OF BUSINESS DECISIONS IN GHANA

This study examines conditions that necessitate the adoption of a hybrid strategy in a dynamic market. The analysis is operationalized on a multisectorial sample of 610 firms in Ghana. The binomial logit regression model was estimated to examine the probability of the sampled firms to adopt hybrid strategy based on an array of competitive-based and firm-specific variables. The results show that generally, firms with superior firm performance, high organizational capabilities in marketing and innovation, strong positions in the implementation of single strategies, low industrial competitiveness and high growth in firm size are more likely to adopt a hybrid strategy to increase competitive advantage. However, we also observed that conditions are not homogenous across industries. We conclude that manufacturing firms apply competitive-based criteria rather than firm-specific factors in their decision to adopt hybrid strategies.

Dynamic Tensions from Management Control Systems and Performance in a Sub-Saharan African Economy: Mediating Effects of Competitive Strategy

This study examines how the dynamic tension created as a result of the simultaneous and balanced use of controlling and innovative forces of management control systems indirectly influences firm performance through competitive strategy. Using data from 106 firms from Ghana, over three time periods and the Preacher and Hayes’ (2008) bootstrapping procedure, the findings indicate that dynamic tension has a direct positive effect on the competitive strategic typologies of cost leadership, differentiation, and hybrid strategies. Moreover, dynamic tension positively influences performance indirectly through cost leadership and differentiation strategies, but not the hybrid strategy. We also find that the indirect effect of dynamic tension on firm performance through the pure strategies is greater than that through the hybrid strategy. The findings indicate that the dynamic tension is not only germane in influencing competitive strategy, but also firm performance through competitive strategy.