The Impact of Managerial competencies on Financial performance of SME’s with mediating role of Competitive Advantage

Abstract

The study aims to examine the impact of managerial competencies on the financial performance of SMEs operating in emerging economy Pakistan with mediating role of competitive advantage. This research is quantitative. Cross-sectional data were collected from 149 registered Small and Medium Enterprises operating in Islamabad through a structured questionnaire. The findings of this study displayed that managerial competencies significantly contribute to the financial performance of SMEs. Furthermore, competitive advantage plays a partial mediating role between the nexus of managerial competencies and the financial performance of SMEs. The result of the study suggests that managerial skills and knowledge play a Significant role in SMEs' financial performance which is advantageous for owners and managers of SMEs to gain a competitive edge. The result of this study is equally beneficial for CEOs, owners, and managers of SMEs who are busy configuring financial performance.