Managerial Competencies and Performance of Small and Medium Enterprises in Yangon, Myanmar

https://doi.org/10.35912/ijfam.v7i1.2669
Published: Jun 30, 2025

Abstract:

Purpose: This study explores the effect of managerial competencies on the performance of SMEs in Yangon, Myanmar.

Methods: A mixed-method approach was employed, combining qualitative and quantitative data. A structured questionnaire was distributed to 370 SMEs in Yangon, selected through a stratified random sampling technique, and regression analysis was used for quantitative data. In addition, 10 participants were interviewed for the qualitative portion, and thematic analysis was applied to the qualitative data.

Results: The quantitative findings indicate that managerial skills positively impact SME performance, although the influence of certain competencies on business outcomes differs depending on the firm's size. Qualitative analysis revealed that while most SMEs acknowledged the significance of conceptual and technological skills, they were less aware of the importance of human competencies. Furthermore, respondents highlighted the necessity of significant investment to promote business growth and innovation, but these requirements were largely neglected by the government.

Conclusions: This study found that managerial competencies significantly influence SME performance in Yangon, with technical skills being crucial for small businesses and broader competencies for medium-sized businesses. Many SME owners lack awareness of human competencies and face ongoing challenges, particularly limited government support for investment and innovation.

Limitations: This study focuses exclusively on SMEs in Yangon, which may not provide a comprehensive representation of the broader SME sector in Myanmar.

Contribution: The findings of this study are anticipated to offer valuable insights to SME operators, owners, and policymakers in Myanmar.

Keywords:
1. Conceptual Competencies
2. Human Competencies
3. Managerial-Competencies
4. SME Performance
5. Technical-Competencies
Authors:
1 . Su Wah Hlaing
Myanmar Noble University
2 . Myo Myint Aung
STP Research Myanmar
View PDF
How to Cite
Hlaing, S. W., & Aung, M. M. (2025). Managerial Competencies and Performance of Small and Medium Enterprises in Yangon, Myanmar. International Journal of Financial, Accounting, and Management, 7(1), 105–124. https://doi.org/10.35912/ijfam.v7i1.2669
Download Citation
  1. Endnote/Zotero/Mendeley (RIS)
  2. BibTeX

Downloads

Download data is not yet available.
Issue & Section
Vol. 7 No. 1 (2025): June
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Author Biography

Myo Myint Aung, STP Research Myanmar

Director of Single Touch Point Co.,Ltd.

No.69, Tha Ha Ya St., Ward-13

Hlaing Township

Yangon

www.stpmyanmar.com

 

 

 

References

    References

    Ahmad, I., & Ahmad, S. B. (2021). Effect of managerial skills on the performance of small-and medium-sized enterprises: A case study in Pakistan. The Journal of Asian Finance, Economics and Business, 8(4), 161-170. doi:https://doi.org/10.13106/jafeb.2021.vol8.no4.0161

    Al-Mamary, Y. H., Alwaheeb, M. A., Alshammari, N. G. M., Abdulrab, M., Balhareth, H., & Soltane, H. B. (2020). The Effect of Entrepreneurial Orientation on Financial and Non-Financial Performance in Saudi Smes: A Review. Journal of critical Reviews, 7(14), 270-278. doi:https://doi.org/10.31838/jcr.07.14.35

    Amayreh, K. T. (2023). The influence of managerial competencies on the performance of small and medium enterprises in Jordan. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2), 599–607. doi:http://dx.doi.org/10.6007/IJARAFMS/v13-i2/17635

    Ani, M. (2019). Reflections on entrepreneurship education in Nigeria tertiary education. International Research Journal in the Management Sciences, 6(1), 1-8. doi:https://doi.org/10.4102/ac.v6i1.78

    Anoke, A. F., Onu, A. N., & Agagbo, O. C. (2022). Managerial competencies and growth of small and medium enterprise (SMEs) in Abuja Metropolis, Nigeria. International Journal of Financial, Accounting, and Management, 4(3), 255-268. doi:https://doi.org/10.35912/ijfam.v4i3.811

    Benito-Osorio, D., Colino, A., Guerras-Martín, L. Á., & Zúñiga-Vicente, J. Á. (2016). The international diversification-performance link in Spain: Does firm size really matter? International Business Review, 25(2), 548-558. doi:https://doi.org/10.1016/j.ibusrev.2015.09.004

    B?ezinová, M. (2021). Basic Characteristics of Small and Medium-Sized Enterprises in Terms of Their Strategic Management. International Journal of Systems Applications, Engineering & Development, 15, 84-87. doi:https://doi.org/10.46300/91015

    Charltons. (n.d.). SMEs in Myanmar. Retrieved from https://www.charltonsmyanmar.com/myanmar-economy/smes-in-myanmar/#:~:text=126%2C237%20or%20approximately%2099.4%25%20of,country's%20future%20national%20economic%20development

    Choongo, P. (2017). A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in Smes in Zambia. Sustainability, 9(8), 1300. doi:https://doi.org/10.3390/su9081300

    Dinku, A. E., Singh, M., & Singh, S. (2024). Effect of human capital on the performance of small and medium enterprises: a mediating role of innovation practice in Ethiopia. Cogent Business & Management, 11(1), 2434729. doi:https://doi.org/10.1080/23311975.2024.2434729

    Effiom, L., & Edet, S. E. (2018). Success of small and medium enterprises in Nigeria: Do environmental factors matter. Journal of Economics and sustainable Development, 9(4), 117-127.

    Gitia, S. W. (2019). Influence of Management Skills on Staff Performance in the Health Sector: a Case of Consolata Hospital Kyeni, Embu County, Kenya. University of Nairobi.

    Hastuti, N. A., Mehmood, B. N., & Kraus, E. T. (2023). Analysis of Managerial Competencies and Performance of State Corporations in Antalya, Turkey. Journal of Human Resource & Leadership, 7(4), 11-20. doi:https://doi.org/10.53819/81018102t5217

    Kapteyn, A., & Wah, S. H. (2016). Challenges to small and medium-size businesses in Myanmar: What are they and how do we know? Journal of Asian Economics, 47, 1-22. doi:https://doi.org/10.1016/j.asieco.2016.08.004

    Loan, N. T., Nguyen, T. D., & Nam, N. K. (2023). The Impacts of Management Competence on Small and Medium-Sized Enterprises Performance: From the Balanced Scorecard Perspective. Przestrze? Spo?eczna (Social Space), 23(1), 148-172.

    Logose, K. (2022). The Effect of Managerial Skills on the Growth of Small and Medium Enterprises in Pallisa District. Busitema University.

    Mashavira, N., & Chipunza, C. (2021). Managerial Conceptual Competencies and the Performance of Small and Medium-Sized Enterprises in Zimbabwe. The Southern African Journal of Entrepreneurship and Small Business Management, 13(1), 386. doi:http://dx.doi.org/10.51137/ijarbm.2024.5.2.26

    McClelland, D. C. (1973). Testing for Competence Rather Than for" Intelligence.". American psychologist, 28(1), 1. doi:https://psycnet.apa.org/doi/10.1037/h0034092

    McConnell, C. R. (2018). Interpersonal Competence in the Management of People. The Health Care Manager, 37(4), 358-367. doi: https://doi.org/10.1097/HCM.0000000000000237

    Mehralian, G., Peikanpour, M., Rangchian, M., & Aghakhani, H. (2020). Managerial Skills and Performance in Small Businesses: The Mediating Role of Organizational Climate. Journal of Asia Business Studies, 14(3), 361-377. doi:https://doi.org/10.1108/JABS-02-2019-0041

    Melo, R. C. (2021). Managerial Skills of School Heads as Correlate of Teacher’s Work Performance in Distance Learning. International Journal of Advanced Multidisciplinary Studies, 1, 172-186.

    Mufti, O., Parvaiz, G. S., Wahab, M., & Durrani, M. (2016). Human Resource Competencies and Organizational Performance: A Study on Banking Sector Managers in Pakistan. Journal of Managerial Sciences, 10(1).

    Muhangi, B. W., Iqbal, B., & Kasozi-Mulindwa, S. (2024). The Interaction Effect of Stakeholder Engagement on Managerial Competencies-Financial Performance Nexus; Empirical Evidence from Microfinance Institutions in Uganda. American Journal of Finance, 10(1), 33-58. doi:https://doi.org/10.47672/ajf.1804

    Ncube, M. S., & Chimucheka, T. (2019). The Effect of Managerial Competencies on the Performance of Small and Medium Enterprises in Makana Municipality, South Africa. African Journal of Hospitality, Tourism and Leisure, 8(5), 1-15.

    Nzewi, H. N., Onwuka, E. M., Okoro, O. B., & Anah, S. (2017). Strategic Management Foundations and Employee Performance of Aluminium Companies in Delta State. African Research Review, 11(3), 187-196. doi:http://doi.org/10.4314/afrrev.v11i3.18

    Olofu, C. (2018). Effect of managerial competencies on the growth of SMEs in Nasarawa State. Journal of Entrepreneurship Development Research, 3(3), 67-85.

    Opute, A. P. (2020). Small and Medium Enterprises Marketing: Innovation and Sustainable Economic Growth Perspective Entrepreneurship marketing (pp. 13-30): Routledge.

    Orobia, L. A., Nakibuuka, J., Bananuka, J., & Akisimire, R. (2020). Inventory Management, Managerial Competence and Financial Performance of Small Businesses. Journal of Accounting in Emerging Economies, 10(3), 379-398. doi:https://doi.org/10.1108/JAEE-07-2019-0147

    Pace, D. S. (2021). Probability and non-probability sampling-an entry point for undergraduate researchers. International Journal of Quantitative and Qualitative Research Methods, 9(2), 1-15.

    Ramadan, A., Alkhodary, D., Alnawaiseh, M., Jebreen, K., Morshed, A., & Ahmad, A. B. (2024). Managerial Competence and Inventory Management in SME Financial Performance: A Hungarian Perspective. Journal of Statistics Applications & Probability, 13(3), 859-870. doi:https://dx.doi.org/10.18576/jsap/130301

    Rashid, N., Ismail, W., Rahman, M. S. A., & Afthanorhan, A. (2018). Conceptual Analysis on Performance Measurement Used in Smes Research: The Effectiveness of Firm’s Overall Performance. International Journal of Academic Research in Business and Social Sciences, 8(11), 1401-1412. doi:http://dx.doi.org/10.6007/IJARBSS/v8-i11/5199

    Salman, M., Ganie, S. A., & Saleem, I. (2020). The concept of competence: a thematic review and discussion. European Journal of Training and Development, 44(6/7), 717-742. doi:https://doi.org/10.1108/EJTD-10-2019-0171

    Sellers, R., & Alampi-Sottini, V. (2016). The Influence of Size on Winery Performance: Evidence from Italy. Wine Economics and Policy, 5(1), 33-41. doi:https://doi.org/10.1016/j.wep.2016.03.001

    Shomoye-Olusi, M. A., Olayemi, O. O., & Okonji, P. S. (2024). Managerial Competencies and the Small and Medium Enterprises’ Performance in Lagos State, Nigeria. Fuoye Journal of Finance and Contemporary Issues, 6(1). doi:https://dx.doi.org/10.18576/jsap/130301

    Siddiq, A. M., Muttaqin, R., & Wijaya, F. (2023). The Effect of Competence on Job Satisfaction And its Impact on Employee Performance at the Culture and Tourism Office of East Belitung Regency. Journal of Management Science (JMAS), 6(3), 289-297. doi:https://doi.org/10.35335/jmas.v6i3.264

    Sualeh, M., & Akram, M. (2021). The Impact of Managerial Competencies on Financial Performance of SME’s with Mediating Role of Competitive Advantage. NICE Research Journal, 1-18. doi:https://doi.org/10.51239/nrjss.vi.315

    Taherdoost, H. (2022). What are Different Research Approaches? Comprehensive Review of Qualitative, Quantitative, and Mixed Method Research, Their Applications, Types, and Limitations. Journal of Management Science & Engineering Research, 5(1), 53-63. doi:https://doi.org/10.30564/jmser.v5i1.4538

    Usman, B. (2019). The Impact of Entrepreneurship Education on SMEs Growth. International Review on public and non-profit Marketing Venture, 8(2), 111-130.

    Wilden, R., Gudergan, S. P., Nielsen, B. B., & Lings, I. (2013). Dynamic Capabilities and Performance: Strategy, Structure and Environment. Long range planning, 46(1-2), 72-96. doi:https://doi.org/10.1016/j.lrp.2012.12.001

    Wong, S.-C. (2020). Competency Definitions, Development and Assessment: A Brief Review. International Journal of Academic Research in Progressive Education and Development, 9(3), 95-114.

    Yamane, T. (1967). Elementary Sampling Theory.

  1. References
  2. Ahmad, I., & Ahmad, S. B. (2021). Effect of managerial skills on the performance of small-and medium-sized enterprises: A case study in Pakistan. The Journal of Asian Finance, Economics and Business, 8(4), 161-170. doi:https://doi.org/10.13106/jafeb.2021.vol8.no4.0161
  3. Al-Mamary, Y. H., Alwaheeb, M. A., Alshammari, N. G. M., Abdulrab, M., Balhareth, H., & Soltane, H. B. (2020). The Effect of Entrepreneurial Orientation on Financial and Non-Financial Performance in Saudi Smes: A Review. Journal of critical Reviews, 7(14), 270-278. doi:https://doi.org/10.31838/jcr.07.14.35
  4. Amayreh, K. T. (2023). The influence of managerial competencies on the performance of small and medium enterprises in Jordan. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2), 599–607. doi:http://dx.doi.org/10.6007/IJARAFMS/v13-i2/17635
  5. Ani, M. (2019). Reflections on entrepreneurship education in Nigeria tertiary education. International Research Journal in the Management Sciences, 6(1), 1-8. doi:https://doi.org/10.4102/ac.v6i1.78
  6. Anoke, A. F., Onu, A. N., & Agagbo, O. C. (2022). Managerial competencies and growth of small and medium enterprise (SMEs) in Abuja Metropolis, Nigeria. International Journal of Financial, Accounting, and Management, 4(3), 255-268. doi:https://doi.org/10.35912/ijfam.v4i3.811
  7. Benito-Osorio, D., Colino, A., Guerras-Martín, L. Á., & Zúñiga-Vicente, J. Á. (2016). The international diversification-performance link in Spain: Does firm size really matter? International Business Review, 25(2), 548-558. doi:https://doi.org/10.1016/j.ibusrev.2015.09.004
  8. B?ezinová, M. (2021). Basic Characteristics of Small and Medium-Sized Enterprises in Terms of Their Strategic Management. International Journal of Systems Applications, Engineering & Development, 15, 84-87. doi:https://doi.org/10.46300/91015
  9. Charltons. (n.d.). SMEs in Myanmar. Retrieved from https://www.charltonsmyanmar.com/myanmar-economy/smes-in-myanmar/#:~:text=126%2C237%20or%20approximately%2099.4%25%20of,country's%20future%20national%20economic%20development
  10. Choongo, P. (2017). A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in Smes in Zambia. Sustainability, 9(8), 1300. doi:https://doi.org/10.3390/su9081300
  11. Dinku, A. E., Singh, M., & Singh, S. (2024). Effect of human capital on the performance of small and medium enterprises: a mediating role of innovation practice in Ethiopia. Cogent Business & Management, 11(1), 2434729. doi:https://doi.org/10.1080/23311975.2024.2434729
  12. Effiom, L., & Edet, S. E. (2018). Success of small and medium enterprises in Nigeria: Do environmental factors matter. Journal of Economics and sustainable Development, 9(4), 117-127.
  13. Gitia, S. W. (2019). Influence of Management Skills on Staff Performance in the Health Sector: a Case of Consolata Hospital Kyeni, Embu County, Kenya. University of Nairobi.
  14. Hastuti, N. A., Mehmood, B. N., & Kraus, E. T. (2023). Analysis of Managerial Competencies and Performance of State Corporations in Antalya, Turkey. Journal of Human Resource & Leadership, 7(4), 11-20. doi:https://doi.org/10.53819/81018102t5217
  15. Kapteyn, A., & Wah, S. H. (2016). Challenges to small and medium-size businesses in Myanmar: What are they and how do we know? Journal of Asian Economics, 47, 1-22. doi:https://doi.org/10.1016/j.asieco.2016.08.004
  16. Loan, N. T., Nguyen, T. D., & Nam, N. K. (2023). The Impacts of Management Competence on Small and Medium-Sized Enterprises Performance: From the Balanced Scorecard Perspective. Przestrze? Spo?eczna (Social Space), 23(1), 148-172.
  17. Logose, K. (2022). The Effect of Managerial Skills on the Growth of Small and Medium Enterprises in Pallisa District. Busitema University.
  18. Mashavira, N., & Chipunza, C. (2021). Managerial Conceptual Competencies and the Performance of Small and Medium-Sized Enterprises in Zimbabwe. The Southern African Journal of Entrepreneurship and Small Business Management, 13(1), 386. doi:http://dx.doi.org/10.51137/ijarbm.2024.5.2.26
  19. McClelland, D. C. (1973). Testing for Competence Rather Than for" Intelligence.". American psychologist, 28(1), 1. doi:https://psycnet.apa.org/doi/10.1037/h0034092
  20. McConnell, C. R. (2018). Interpersonal Competence in the Management of People. The Health Care Manager, 37(4), 358-367. doi: https://doi.org/10.1097/HCM.0000000000000237
  21. Mehralian, G., Peikanpour, M., Rangchian, M., & Aghakhani, H. (2020). Managerial Skills and Performance in Small Businesses: The Mediating Role of Organizational Climate. Journal of Asia Business Studies, 14(3), 361-377. doi:https://doi.org/10.1108/JABS-02-2019-0041
  22. Melo, R. C. (2021). Managerial Skills of School Heads as Correlate of Teacher’s Work Performance in Distance Learning. International Journal of Advanced Multidisciplinary Studies, 1, 172-186.
  23. Mufti, O., Parvaiz, G. S., Wahab, M., & Durrani, M. (2016). Human Resource Competencies and Organizational Performance: A Study on Banking Sector Managers in Pakistan. Journal of Managerial Sciences, 10(1).
  24. Muhangi, B. W., Iqbal, B., & Kasozi-Mulindwa, S. (2024). The Interaction Effect of Stakeholder Engagement on Managerial Competencies-Financial Performance Nexus; Empirical Evidence from Microfinance Institutions in Uganda. American Journal of Finance, 10(1), 33-58. doi:https://doi.org/10.47672/ajf.1804
  25. Ncube, M. S., & Chimucheka, T. (2019). The Effect of Managerial Competencies on the Performance of Small and Medium Enterprises in Makana Municipality, South Africa. African Journal of Hospitality, Tourism and Leisure, 8(5), 1-15.
  26. Nzewi, H. N., Onwuka, E. M., Okoro, O. B., & Anah, S. (2017). Strategic Management Foundations and Employee Performance of Aluminium Companies in Delta State. African Research Review, 11(3), 187-196. doi:http://doi.org/10.4314/afrrev.v11i3.18
  27. Olofu, C. (2018). Effect of managerial competencies on the growth of SMEs in Nasarawa State. Journal of Entrepreneurship Development Research, 3(3), 67-85.
  28. Opute, A. P. (2020). Small and Medium Enterprises Marketing: Innovation and Sustainable Economic Growth Perspective Entrepreneurship marketing (pp. 13-30): Routledge.
  29. Orobia, L. A., Nakibuuka, J., Bananuka, J., & Akisimire, R. (2020). Inventory Management, Managerial Competence and Financial Performance of Small Businesses. Journal of Accounting in Emerging Economies, 10(3), 379-398. doi:https://doi.org/10.1108/JAEE-07-2019-0147
  30. Pace, D. S. (2021). Probability and non-probability sampling-an entry point for undergraduate researchers. International Journal of Quantitative and Qualitative Research Methods, 9(2), 1-15.
  31. Ramadan, A., Alkhodary, D., Alnawaiseh, M., Jebreen, K., Morshed, A., & Ahmad, A. B. (2024). Managerial Competence and Inventory Management in SME Financial Performance: A Hungarian Perspective. Journal of Statistics Applications & Probability, 13(3), 859-870. doi:https://dx.doi.org/10.18576/jsap/130301
  32. Rashid, N., Ismail, W., Rahman, M. S. A., & Afthanorhan, A. (2018). Conceptual Analysis on Performance Measurement Used in Smes Research: The Effectiveness of Firm’s Overall Performance. International Journal of Academic Research in Business and Social Sciences, 8(11), 1401-1412. doi:http://dx.doi.org/10.6007/IJARBSS/v8-i11/5199
  33. Salman, M., Ganie, S. A., & Saleem, I. (2020). The concept of competence: a thematic review and discussion. European Journal of Training and Development, 44(6/7), 717-742. doi:https://doi.org/10.1108/EJTD-10-2019-0171
  34. Sellers, R., & Alampi-Sottini, V. (2016). The Influence of Size on Winery Performance: Evidence from Italy. Wine Economics and Policy, 5(1), 33-41. doi:https://doi.org/10.1016/j.wep.2016.03.001
  35. Shomoye-Olusi, M. A., Olayemi, O. O., & Okonji, P. S. (2024). Managerial Competencies and the Small and Medium Enterprises’ Performance in Lagos State, Nigeria. Fuoye Journal of Finance and Contemporary Issues, 6(1). doi:https://dx.doi.org/10.18576/jsap/130301
  36. Siddiq, A. M., Muttaqin, R., & Wijaya, F. (2023). The Effect of Competence on Job Satisfaction And its Impact on Employee Performance at the Culture and Tourism Office of East Belitung Regency. Journal of Management Science (JMAS), 6(3), 289-297. doi:https://doi.org/10.35335/jmas.v6i3.264
  37. Sualeh, M., & Akram, M. (2021). The Impact of Managerial Competencies on Financial Performance of SME’s with Mediating Role of Competitive Advantage. NICE Research Journal, 1-18. doi:https://doi.org/10.51239/nrjss.vi.315
  38. Taherdoost, H. (2022). What are Different Research Approaches? Comprehensive Review of Qualitative, Quantitative, and Mixed Method Research, Their Applications, Types, and Limitations. Journal of Management Science & Engineering Research, 5(1), 53-63. doi:https://doi.org/10.30564/jmser.v5i1.4538
  39. Usman, B. (2019). The Impact of Entrepreneurship Education on SMEs Growth. International Review on public and non-profit Marketing Venture, 8(2), 111-130.
  40. Wilden, R., Gudergan, S. P., Nielsen, B. B., & Lings, I. (2013). Dynamic Capabilities and Performance: Strategy, Structure and Environment. Long range planning, 46(1-2), 72-96. doi:https://doi.org/10.1016/j.lrp.2012.12.001
  41. Wong, S.-C. (2020). Competency Definitions, Development and Assessment: A Brief Review. International Journal of Academic Research in Progressive Education and Development, 9(3), 95-114.
  42. Yamane, T. (1967). Elementary Sampling Theory.