Abstract:
This paper examines the moderating role of stakeholder engagement
on the relationship between managerial competence and financial performance.
Using a survey-based approach, the study examined 423 small and medium
scale firms operating in Ghana, a Sub-Saharan African country. The findings
indicate that, stakeholder engagement does not assist managerial competence in
having a positive impact on financial performance. However, both independent
variables, acting separately, have a positive and significant relationship with
financial performance. Hence, it was recommended that SMEs should invest
more at employing competent managers or in training existing managers to
become more competent as that alone, without the assistance of stakeholder
engagement, can improve financial performance.
