The influence of skills management on the performance of Chadian SMEs

Abstract

Small and Medium Enterprises (SMEs) in Africa play a crucial role in ensuring sustainable growth and employing millions of Africans in the job market (Nkakleu, 2018). The skills of employees are indispensable for the performance of SMEs. However, effective management of these skills is essential to achieve organizational performance. According to Galambaud (2010), competency management involves identifying, evaluating, and developing the key skills necessary for an organization, with a focus on aligning available skills with current and future needs. This research aims to explore the effect of competency management in Chadian SMEs on their organizational performance. To achieve this, a quantitative approach was adopted, based on a questionnaire survey conducted on a purposive sample of 115 formal Chadian SMEs. Data analysis was performed using the structural equation modeling method. The study findings indicate that employee training practices have a positive and significant influence on the social performance of Chadian SMEs. Similarly, mentoring practices have a positive and significant impact on the financial performance of Chadian SMEs. Moreover, employee evaluation significantly affects financial performance in Chadian SMEs. Finally, promotion practices positively influence the social performance of SMEs.

Keywords: Competency, Competency management, SMEs, Performance, Chad

JEL Classification : M19 ; J53    

Paper type : Empirical Research