Organizational environment and management skills in small and medium-sized enterprises

At present, managers need to acquire and master various management skills that contribute to a positive organizational environment. The aim of this study is to investigate the association between management skills and the organizational environment of small and medium-sized enterprises (SMEs) in Kar...

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Main Authors: Shah Mehmood Wagan, Sidra Sidra, Mohammad Mesba Ul Hoque
Format: Article
Language:English
Published: Financial University 2024-10-01
Series:Review of Business and Economics Studies
Subjects:
Online Access:https://rbes.fa.ru/jour/article/view/441/250
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author Shah Mehmood Wagan
Sidra Sidra
Mohammad Mesba Ul Hoque
author_facet Shah Mehmood Wagan
Sidra Sidra
Mohammad Mesba Ul Hoque
author_sort Shah Mehmood Wagan
collection DOAJ
description At present, managers need to acquire and master various management skills that contribute to a positive organizational environment. The aim of this study is to investigate the association between management skills and the organizational environment of small and medium-sized enterprises (SMEs) in Karachi, Pakistan. The primary objective is to determine how various management skills — negotiation, decision-making, leadership, communication, and teamwork — affect the organizational environment within SMEs. Scientific methods for research adopt a descriptive and quantitative approach, utilizing a questionnaire administered to managers of 253 SMEs. Data analysis was conducted using structural equation modeling (SEM) via the partial least squares (PLS) method, employing SmartPLS 4 software. Findings of the study reveal that the latent variables of negotiation and leadership significantly impact the organizational environment, with an R-square value of 0.854. The effect size (F-square) indicates a high impact of negotiation (F-square = 0.720) on the organizational environment, while leadership has a lower but still significant effect (F-square = 0.103). Other management skills, such as decision-making, communication, and teamwork, also show positive associations with the organizational environment, although to lower degrees. Conclusions. The study emphasizes the significance of management skills, particularly effective negotiation and leadership, in fostering a productive organizational environment in SMEs. Also, it suggests that training and development in these areas could significantly improve performance.
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spelling doaj-art-eec340c86c4c4c4eb9618d91d6dfd98c2025-08-20T02:26:55ZengFinancial UniversityReview of Business and Economics Studies2308-944X2311-02792024-10-0112386101https://doi.org/10.26794/2308-944X-2024-12-3-86-101Organizational environment and management skills in small and medium-sized enterprisesShah Mehmood Wagan0https://orcid.org/0009-0003-0449-2655Sidra Sidra1https://orcid.org/0009-0003-1689-3296Mohammad Mesba Ul Hoque2https://orcid.org/0009-0006-0113-8644Sichuan UniversitySichuan University,Sichuan UniversityAt present, managers need to acquire and master various management skills that contribute to a positive organizational environment. The aim of this study is to investigate the association between management skills and the organizational environment of small and medium-sized enterprises (SMEs) in Karachi, Pakistan. The primary objective is to determine how various management skills — negotiation, decision-making, leadership, communication, and teamwork — affect the organizational environment within SMEs. Scientific methods for research adopt a descriptive and quantitative approach, utilizing a questionnaire administered to managers of 253 SMEs. Data analysis was conducted using structural equation modeling (SEM) via the partial least squares (PLS) method, employing SmartPLS 4 software. Findings of the study reveal that the latent variables of negotiation and leadership significantly impact the organizational environment, with an R-square value of 0.854. The effect size (F-square) indicates a high impact of negotiation (F-square = 0.720) on the organizational environment, while leadership has a lower but still significant effect (F-square = 0.103). Other management skills, such as decision-making, communication, and teamwork, also show positive associations with the organizational environment, although to lower degrees. Conclusions. The study emphasizes the significance of management skills, particularly effective negotiation and leadership, in fostering a productive organizational environment in SMEs. Also, it suggests that training and development in these areas could significantly improve performance.https://rbes.fa.ru/jour/article/view/441/250organizational environmentmanagementmanagement skillssmesnegotiationleadershipsem-plspakistan
spellingShingle Shah Mehmood Wagan
Sidra Sidra
Mohammad Mesba Ul Hoque
Organizational environment and management skills in small and medium-sized enterprises
Review of Business and Economics Studies
organizational environment
management
management skills
smes
negotiation
leadership
sem-pls
pakistan
title Organizational environment and management skills in small and medium-sized enterprises
title_full Organizational environment and management skills in small and medium-sized enterprises
title_fullStr Organizational environment and management skills in small and medium-sized enterprises
title_full_unstemmed Organizational environment and management skills in small and medium-sized enterprises
title_short Organizational environment and management skills in small and medium-sized enterprises
title_sort organizational environment and management skills in small and medium sized enterprises
topic organizational environment
management
management skills
smes
negotiation
leadership
sem-pls
pakistan
url https://rbes.fa.ru/jour/article/view/441/250
work_keys_str_mv AT shahmehmoodwagan organizationalenvironmentandmanagementskillsinsmallandmediumsizedenterprises
AT sidrasidra organizationalenvironmentandmanagementskillsinsmallandmediumsizedenterprises
AT mohammadmesbaulhoque organizationalenvironmentandmanagementskillsinsmallandmediumsizedenterprises