Network Relationships, Marketing Capabilities and Performance of Micro, small and medium enterprises within urban areas in Uganda: A case of Nakawa Division

Abstract

Micro, Small and Medium Enterprises (MSMEs) are key drivers in world economies and are a means of creating employment and hence poverty alleviation. This study sought to examine the relationship between Network Relationship, marketing capabilities and performance of MSMEs. A Cross sectional survey was used as a methodology in which a population of 8270 businesses in the food processing and restaurant, metal fabrication and wielding and market vendors were considered. From this population 367 businesses were drawn as a sample using stratified sampling method to group the businesses and simple random sampling to select the respondents. The study findings indicated that there is a significant positive relationship between marketing capabilities and performance of MSMES, there is also a significant positive relationship between network relationship and performance of MSMEs, and a significant positive relationship between network relationship and marketing capabilities. On the mediating role of marketing capabilities in the relationship between network relationships and performance of MSMEs the findings showed a significant mediating effect of (Z = 5.795, p<.01). It was found out that there is a positive and significant relationship between network relationships, marketing capabilities and performance of MSMES.