Conceptualizing recourses as antecedents to the economic performance of family-based microenterprise – the moderating role of competencies

Abstract

Purpose

The development of family-based microenterprises has attracted the attention of regulators, microfinance institutions and other stakeholders in either developing or least developed countries. In the finance literature, several studies have examined the determinants of the family-based microenterprises development; however, there are several venues that need to be examined. The study aims to explain the economic profit of microenterprises from resource-based theory and human capital perspectives.

Design/methodology/approach

Based on critical review and theoretical grounding, this study proposes a conceptual framework, which bridges intangible resources with economic growth of microenterprises.

Findings

After reviewing previous studies and based on the underpinning theoretical framework, the study finds that human capital is one of the variables that has received a little attention and yet to be examined as a moderating role. Based on the human capital theorist, individual's competencies help enterprises to perform better in business, as enterprises that possess competencies and capabilities are more likely to have higher levels of growth and profitability.

Practical implications

This finding provides useful implications for the stakeholders and policymakers and contributes in the future literature.

Originality/value

Based on critical review and theoretical grounding, this study proposes a conceptual framework, which bridges intangible resources with economic growth of microenterprises.

Citation

Ahamad, S., Al-jaifi, H.A. and Mostafiz, M.I. (2020), "Conceptualizing recourses as antecedents to the economic performance of family-based microenterprise – the moderating role of competencies", Journal of Family Business Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFBM-04-2019-0027