BUSINESS ENVIRONMENT AND ORGANIZATIONAL PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISE IN JOS NORTH LOCAL GOVERNMENT AREA OF PLATEAU STATE

MEDIATING ROLE OF DYNAMIC CAPABILITY

Abstract

The study examined business environment and organizational performance of small and medium scale enterprise in Jos North Local Government Area of Plateau State; introducing dynamic capabilities as a mediating variables. Survey research method was used as the research design and a sample size of (367) respondents were selected for the research work from unknown population, out of which three hundred and eighteen (318) respondents representing 86 percent response rate returned the completed questionnaire. The questionnaire response was analyzed using SPSS, while the simple regression was employed to test each of the dimensional effect on dependent variable, while process by Andrew Hayes was used to test the mediating effect of dynamic capabilities in the relationship between business environment and organizational performance. The findings of this study indicated that there is a positive significant effect between business environment, dynamic capabilities on organizational performance, meaning that any unit increase in business environment and dynamic capabilities there is a corresponding increases on organizational performance. The mediation result found a positive mediating effect of dynamic capabilities in the relationship between business environment and organizational performance. The study concludes that business environment indicates the aggregate total of all people, organisations and other forces that are outside the power of industry but that may affect organizational performance. The study therefore recommended Small businesses should understand the modalities and application of business environment operations, since it enhances dynamic capabilities.