INTERNAL CAPABILITIES AND SUSTAINABILITY OF SMEs IN AWKA, ANAMBRA STATE

Abstract

The short-life span of SMEs is alarming as businesses do not operate beyond 2years of existence and this has been traced to poor capability of SMEs. In view of this, the study determined the extent of relationship that exists between internal capabilities and sustainability of SMEs Awka, Anambra State. However, the specific objectives focused on the degree of relationship between job-skill mismatch and Business competitiveness of SMEs, also, between technology capabilities and product quality; and lastly, between innovative capabilities and adaptive performance of SMEs Awka, Anambra State. The study was anchored on Resource-based theory by Barney, 1991. Descriptive survey research design was adopted by the study, the sample size of 217 was determined using complete enumeration method from a total population of 217. Data were collected with the aid of structured questionnaire while hypotheses were tested using Pearson product Moment Correlation Coefficient with the aid of SPSS version 27. Findings revealed that there is significant relationship between internal capabilities and sustainability of SMEs by indicating negative relationship between business competitiveness and job skill mismatch; secondly, positive relationship between technological capabilities and product quality; and positive relationship between relationship between innovative capabilities and adaptive performance. The study concluded that internal capabilities components such as innovative capabilities, technology capacity and job-skill match positively. It was recommended that SMEs owners and management need to conduct capacity needs assessment test so as to review the capacity gap of the organization.