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An Empowerment Scale Analysis of Mexican MSMEs: Modeling with Covariance Structures

Author

Listed:
  • María de la Cruz del Río-Rama

    (Business Management and Marketing Department, Faculty of Business Sciences and Tourism, University of Vigo, 32004 Ourense, Spain)

  • Martha Ríos-Manríquez

    (Finance and Administration Department, University of Guanajuato, Guanajuato 38110, Mexico)

  • José Álvarez-García

    (Financial Economy and Accounting Department, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Cáceres, Spain)

  • María Dolores Sánchez-Fernández

    (Department of Business, University of A Coruña, Campus de Elviña, 15071 A Coruña, Spain)

Abstract

Trained human capital is a source of incalculable resources, with an impact on the results of companies. For this reason, companies must carefully consider three aspects: empowerment with the consideration of the cognitive state of their collaborators; training and compensation; and fluidity in information sharing. Although granting empowerment to collaborators has been shown to be beneficial for organizations, its adoption has not been popularized. Therefore, it remains a construct that needs to be studied and understood, considering that it is influenced by the organizational culture of companies. In this research, the main objective was to examine the factor structure of the empowerment scale from the perspective of the owner or manager of the micro, small and medium-sized companies of Guanajuato, Mexico; using the dimensions of psychological empowerment; fluidity in information sharing; as well as training and compensation. The methodology is based on the Mathematical Economy; application of mathematical methods to represent theories and analyze problems in economics. This investigation used an exploratory and confirmatory factor analysis (CFA) to validate the proposed measurement scale. The sample is made up of 222 valid questionnaires. The CFA provided evidence that the model that best fits the data is a second-order model made up of two dimensions: self-efficacy and influence on the company’s results, which carry the psychological empowerment construct. These results make clear that although information is necessary to train human capital, cognitive variables are more important in the empowerment of human capital.

Suggested Citation

  • María de la Cruz del Río-Rama & Martha Ríos-Manríquez & José Álvarez-García & María Dolores Sánchez-Fernández, 2020. "An Empowerment Scale Analysis of Mexican MSMEs: Modeling with Covariance Structures," Mathematics, MDPI, vol. 8(10), pages 1-23, October.
    • Handle: RePEc:gam:jmathe:v:8:y:2020:i:10:p:1817-:d:430288
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    References listed on IDEAS

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    1. Monje Amor, Ariadna & Abeal Vázquez, José Pablo & Faíña, José Andrés, 2020. "Transformational leadership and work engagement: Exploring the mediating role of structural empowerment," European Management Journal, Elsevier, vol. 38(1), pages 169-178.
    2. Julia Schneider & Michael Dowling & Sumita Raghuram, 2007. "Empowerment as a success factor in start-up companies," Review of Managerial Science, Springer, vol. 1(2), pages 167-184, August.
    3. Ríos Manriquez Martha & Téllez Ramírez María del Rayo & Ferrer Guerra Julian, 2010. "El empowerment como predictor del compromiso organizacional en las Pymes," Contaduría y Administración, Accounting and Management, vol. 55(3), pages 103-125, mayo-agos.
    4. Manjari Singh & Anita Sarkar, 2018. "Role of psychological empowerment in the relationship between structural empowerment and innovative behavior," Management Research Review, Emerald Group Publishing Limited, vol. 42(4), pages 521-538, December.
    5. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    6. Eric Ng Chee Hong & Lam Zheng Hao & Ramesh Kumar & Charles Ramendran & Vimala Kadiresan, 2012. "The Effectiveness of Human Resource Management Practices," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 3(2), pages 60-79, April.
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