Dynamic pathways to SMEs performance: Unraveling the influence of organizational learning capability, innovation, market dynamism and market responsiveness in an African emerging economy

Abstract

This study explores the complex relationships among organizational learning capability (OLC), innovation, market dynamism, market responsiveness, and the performance of small and medium-sized enterprises (SMEs) in African emerging economies. Our research investigates the role of innovation as a mediator in the OLC-performance relationship, the moderated mediation impact of market dynamism, and the mediated moderation effect of market responsiveness in the indirect relationship. Using data from 225 SMEs from Ghana, and Hayes’s PROCESS bootstrapping procedure the findings confirm that innovation mediates the OLC-performance. Although, market dynamism does not moderate the OLC-innovation relationship, it moderates the indirect relationship between OLC and performance through innovation, with a stronger effect at high levels of market dynamism. Additionally, market responsiveness negatively moderates the innovation–performance relationship, but it amplifies the OLC-performance relationship via innovation, with a more pronounced effect at low levels of market responsiveness. The findings indicate that the OLC-performance relationship is not only complex but depend in firm-specific and external factors.