The Relationships Among Gender, Strategic Capabilities, and Performance of Small Retail Firms in Ghana

Abstract

The study examines the direct and indirect effects of gender on business strategies, firm resources, business owners’ skills, and performance of small firms in Ghana. Small businesses comprise about 90% of all enterprises and are recognized as a crucial and integral component of economic development aimed at sustained poverty reduction in Ghana. The ability of these firms to contribute to economic development is influenced by their business strategies, determined by the firm’s resources and owner-manager’s business skills. Structured questionnaires from 600 owner-managers of small retail shops in the Accra Metropolitan area were analyzed. Structural equation modeling using partial least-squares was used to examine the relationships between gender, business strategies, firm resources, business owners’ skills, and performance. Results show that the gender of the owner-managers has a direct influence on business performance, resources, and skills; a partial influence on business strategies; and an indirect influence on performance through business strategies. The findings suggest that assistance programs aimed at addressing business performance should target gender differences to enhance women business owners’ strategies, resources, and skills.