Managerial Interpersonal Competencies and the Performance of Family-and Non-Family-Owned Small and Medium-Sized Enterprises in Zimbabwe and South Africa

Abstract

Orientation: Regardless of the contribution done by small and medium-sized enterprises (SMEs) in modern economies, and the critical role managerial interpersonal competencies play in sustaining these enterprises, no known comparative study has been conducted in SMEs in developing economies. Research purpose: This study purposed to establish the impact of managerial interpersonal competencies on SME performance as measured by innovation and return on investment (ROI) in both family-owned SMEs (FOSMEs) and non-family-owned SMEs (NFOSMEs) in Zimbabwe and South Africa. Motivations for the study: Efforts at understanding managerial competencies and firm performance among SMEs have taken a holistic approach, using all known managerial competencies; yet, recently, there is acknowledgement that interpersonal competencies are more effective in business sustainability than other competencies. With this observation, the need to extent this finding in other contexts among FOSMEs and NFOSMEs in developing countries becomes apparent. Research approach/design and method: The study whose design was a descriptive comparative case study adopted a quantitative approach. Main findings: The study found a positive and significant relationship between managerial interpersonal competencies and firm performance as measured by innovation and ROI in FOSMEs in both countries. Practical/managerial implications: NFOSMEs may need to focus their training on interpersonal competencies for managers in order to be sustainable. For FOSMEs, continuous enhancement of managerial interpersonal competencies is important as it promotes innovation and business sustainability. Contribution/value-add: The study helps fill the lacuna between research and practice with respect to managerial interpersonal competencies in FOSMEs and NFOSMEs in the two countries.