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Competitive Advantages of the Relationship between Entrepreneurial Competencies and Economic Sustainability Performance

Author

Listed:
  • Samsidine Aidara

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu 16100, Malaysia)

  • Abdullah Al Mamun

    (UCSI Graduate Business School, Faculty of Business and Management, UCSI University, Cheras, Kuala Lumpur 56000, Malaysia)

  • Noorul Azwin Md Nasir

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu 16100, Malaysia)

  • Muhammad Mohiuddin

    (Faculty of Business Administration, Laval University, Québec, QC G1V 0A6, Canada)

  • Noorshella Che Nawi

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu 16100, Malaysia)

  • Noor Raihani Zainol

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kota Bharu 16100, Malaysia)

Abstract

This study investigated the mediating and moderating effects of competitive advantage and access to working capital, respectively, on the relationship between entrepreneurial competencies and informal microenterprise economic performance in Senegal from the lens of resource-based view theory (RBV). Data were randomly gathered using the cross-sectional research design from 356 informal micro-entrepreneurs operating in the informal sector. The study outcomes revealed that entrepreneurial competencies and competitive advantage emerged as significant predictors of economic performance for informal microenterprises in Senegal. On the contrary, access to working capital displayed an adverse moderating effect, while competitive advantage exhibited a partial and positive mediating effect on the relationship between entrepreneurial competencies and economic performance of informal microenterprises. The Important and Performance Matrix Analysis (IPMA) results signify that the most significant considerations for the economic performance of informal microenterprises in Senegal were competitive advantage, access to working capital, commitment competency, and relationship competency. Simultaneously, this study expanded the reach of RBV by enhancing our understanding pertaining to the mediating and moderating roles in the relationships among entrepreneurial competencies, competitive advantage, and access to working capital towards improving the economic performance of informal microenterprises across developing countries. Since many have lost their jobs due to the Coronavirus Disease 2019 (COVID-19) pandemic, the Government of Senegal and its policymakers should place more emphasis on the importance of informal entrepreneurship, such as provision of low-interest credit facilities for their working capital, as well as thorough training in the strategic advantage and competencies domains. This is because informal entrepreneurs have the ability, via jobs creation and income generating activities, to contribute to the economic growth of the country.

Suggested Citation

  • Samsidine Aidara & Abdullah Al Mamun & Noorul Azwin Md Nasir & Muhammad Mohiuddin & Noorshella Che Nawi & Noor Raihani Zainol, 2021. "Competitive Advantages of the Relationship between Entrepreneurial Competencies and Economic Sustainability Performance," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:2:p:864-:d:481610
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    References listed on IDEAS

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