Design management capabilities and performance of small and medium-scale enterprises

Abstract This paper examines how innovation mediates the relationship between design management capabilities (DMCs) and firm performance. While these concepts have attracted attention in strategic management literature, how they interact to drive the success of small and medium-scale enterprises (SM...

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Main Authors: Gideon Opoku Tuffuor, Kwame Owusu Kwateng, Francis Kamewor Tetteh, Collins Kankam-Kwarteng, Benedicta Kwakye
Format: Article
Language:English
Published: SpringerOpen 2025-03-01
Series:Journal of Innovation and Entrepreneurship
Subjects:
Online Access:https://doi.org/10.1186/s13731-024-00457-6
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author Gideon Opoku Tuffuor
Kwame Owusu Kwateng
Francis Kamewor Tetteh
Collins Kankam-Kwarteng
Benedicta Kwakye
author_facet Gideon Opoku Tuffuor
Kwame Owusu Kwateng
Francis Kamewor Tetteh
Collins Kankam-Kwarteng
Benedicta Kwakye
author_sort Gideon Opoku Tuffuor
collection DOAJ
description Abstract This paper examines how innovation mediates the relationship between design management capabilities (DMCs) and firm performance. While these concepts have attracted attention in strategic management literature, how they interact to drive the success of small and medium-scale enterprises (SMEs) is not fully understood. Drawing on the dynamic capability perspective, and empirical data from SMEs in Ghana, the proposed model was validated. Survey data were gathered from 209 managers/owners of SMEs in Ghana. Structural equation modeling (SEM) was used to examine the proposed relationships in the model. The findings revealed that there is an insignificant but positive link between design management capabilities and the performance of businesses. Also, innovation is seen to fully mediate the design management capability–firm performance relationship. The results confirmed that SMEs that exhibit good innovative skills in addition to demonstrating design management capabilities can perform well in the market. Studies on design management capability–firm performance relationship is quite rare in the African context. Thus, this paper provides a contemporary view to help stakeholders achieve sustainable benefits by understanding the dynamics of design management capabilities–firm performance relationship.
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institution OA Journals
issn 2192-5372
language English
publishDate 2025-03-01
publisher SpringerOpen
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series Journal of Innovation and Entrepreneurship
spelling doaj-art-dbed06aecba14f078ef88b94eb8e36622025-08-20T01:57:48ZengSpringerOpenJournal of Innovation and Entrepreneurship2192-53722025-03-0114112110.1186/s13731-024-00457-6Design management capabilities and performance of small and medium-scale enterprisesGideon Opoku Tuffuor0Kwame Owusu Kwateng1Francis Kamewor Tetteh2Collins Kankam-Kwarteng3Benedicta Kwakye4Department of Marketing and Corporate Strategy, KNUST School of Business, Kwame Nkrumah University of Science and TechnologyDepartment of Supply Chain and Information Systems, KNUST School of Business, Kwame Nkrumah University of Science and TechnologyDepartment of Supply Chain and Information Systems, KNUST School of Business, Kwame Nkrumah University of Science and TechnologyDepartment of Marketing, School of Business, Kumasi Technical UniversityRegistrar’s Office, Kwame Nkrumah University of Science and TechnologyAbstract This paper examines how innovation mediates the relationship between design management capabilities (DMCs) and firm performance. While these concepts have attracted attention in strategic management literature, how they interact to drive the success of small and medium-scale enterprises (SMEs) is not fully understood. Drawing on the dynamic capability perspective, and empirical data from SMEs in Ghana, the proposed model was validated. Survey data were gathered from 209 managers/owners of SMEs in Ghana. Structural equation modeling (SEM) was used to examine the proposed relationships in the model. The findings revealed that there is an insignificant but positive link between design management capabilities and the performance of businesses. Also, innovation is seen to fully mediate the design management capability–firm performance relationship. The results confirmed that SMEs that exhibit good innovative skills in addition to demonstrating design management capabilities can perform well in the market. Studies on design management capability–firm performance relationship is quite rare in the African context. Thus, this paper provides a contemporary view to help stakeholders achieve sustainable benefits by understanding the dynamics of design management capabilities–firm performance relationship.https://doi.org/10.1186/s13731-024-00457-6Design management capabilityInnovationFirm performanceSmall and medium-scale enterprises
spellingShingle Gideon Opoku Tuffuor
Kwame Owusu Kwateng
Francis Kamewor Tetteh
Collins Kankam-Kwarteng
Benedicta Kwakye
Design management capabilities and performance of small and medium-scale enterprises
Journal of Innovation and Entrepreneurship
Design management capability
Innovation
Firm performance
Small and medium-scale enterprises
title Design management capabilities and performance of small and medium-scale enterprises
title_full Design management capabilities and performance of small and medium-scale enterprises
title_fullStr Design management capabilities and performance of small and medium-scale enterprises
title_full_unstemmed Design management capabilities and performance of small and medium-scale enterprises
title_short Design management capabilities and performance of small and medium-scale enterprises
title_sort design management capabilities and performance of small and medium scale enterprises
topic Design management capability
Innovation
Firm performance
Small and medium-scale enterprises
url https://doi.org/10.1186/s13731-024-00457-6
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AT collinskankamkwarteng designmanagementcapabilitiesandperformanceofsmallandmediumscaleenterprises
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