Proactiveness, innovativeness and firm performance: The mediating role of organizational capability

This study aims to assess the mediating role of organizational capability in the relationship among proactiveness, innovativeness and SME performance. Cluster sampling technique was adopted in this study. Based on a self-administered survey questionnaire, data were collected from 305 manufacturing small and medium enterprises in north-central geopolitical zone in Nigeria. Consequently, the study adopts partial least square-structural equation modelling version 3.2.7 to test the relationships. The findings demonstrate that organizational capability is a crucial mechanism through which proactiveness and innovativeness indirectly influence SME performance. The study demonstrates the relevance for SME owners/managers, policy makers, and SME supporting bodies to lay much emphasis on development of organizational capability as it may easily allow firms to swiftly respond to rapid changes in market needs and enhance their performance in dynamic and competitive business settings.