Abstract
Managerial role and organizational performance has long been highlighted by previous researchers, but majority of the researches was conducted in developed economies. Relatively small firms in developing economies are under research as the legal institutional framework and strategic markets are not well developed. Our aim is to examine how managers influence high performance achievement among small firms, and how their role is being strengthened by organizational culture. A sample of 250 managers in small- and medium-scale enterprises (SMEs) was used. The hypothesis was tested through multiple and hierarchical regression analysis. Result showed that managerial role has direct and indirect influence on high performance achievement among small firms. The study recommended that managerial practical knowledge or skills has a stronger influence on high performance achievement if the institutional environments of small firms permit managers to explore the resources generated by their experience and skills. This suggests that managerial resources alone cannot contribute to high performance achievement without strong and supportive organizational culture. SMEs should focus on building market related competitive capability in an effort to capture the emerging market prospects in these economies.
Introduction
There is a growing demand in recent management field for firms to be responsive to the demands of stakeholders. A large deal of interest is for managers to achieve sustainable competitive advantage. Supporting this curiosity is a prevalent recognition that senior manager’s experience or skills and value is significant for interpreting and predicting high-performance achievement among small firms. Specifically, the impact of stakeholder pressure on managers to adopt ethical and best practices and high performance achievement have been strongly established in the literature (Carroll & Gillen, 2002; de Waal et al., 2014). As manager’s roles and the values created affect business operations and human development, the empirical understanding of these roles and values is important for the effective design of organizational systems (Pearson & Chatterjee, 2001). In this regard, managerial skills, capabilities and competencies have been of most importance for firms to successfully extend their global reach. As global success and surmounting contextual challenges for international organizations is based on the sensitivity of its managers, in recognizing, monitoring, understanding and exploiting different political, economic, socio-cultural, and technological disparity between firms, region as well as countries (Ananthram et al., 2010). Certainly, management studies from Western context has increasingly replicate the idea that managerial role and cultural values affect organizational functioning, decision making, motivation, performance, and satisfaction (Pearson & Chatterjee, 2001). For example, researches on these have been conducted in Western environments with Western instruments (England & Lee, 1974), cross-cultural contexts have been measured with Western instruments (Chew & Putti 1995; Elenkov, 1997), or with a combination of Eastern with Western scales (Ralston et al., 1993). In Asian, Gopalan and Rivera (1997) conducted a managerial studies in India by employing different Western measures, or other researchers in India have chosen to make use of national dimensions of socio-cultural realities (Kumar, 1996; Sinha, 1991). This group of researchers underlines the significant of managerial role and values in relation to cultural environment. These universal assumptions were extended by the wide-ranging study by Hofstede (1980) that set the frameworks to connect personal values and defining cultural profile of a country. This demand requires managers worldwide to be socially and environmentally accountable in the realization of economic objectives.
Nevertheless, the paucity of methodical and regular measures has limited the knowledge about the extent of socialization of domestic leading value orientations of small firm’s senior managers (Pearson & Chatterjee, 2001). Yet, managerial role and its functionality of organizations and operating system or values remain an under-researched concept in African countries such as Nigeria, and its functionality of organizations are yet to be given empirical consideration (Baba Abugre, 2014). Although very few management researches in Africa have made effort to address the scarcity and empirical subject (Baba Abugre, 2014; Hale & Fields, 2007; Kuada, 2010; Puplampu, 2010), they only succeeded in dealing with leadership and culture in Ghana, and not managerial roles, and the values system in small firms in Nigeria. The emergence of Nigeria into the global business arena provides enormous challenges to small firms managers. The work environment will reflect in time the values of quality, customer expectations, ethical integrity as well as social responsibility which remain the basic rules at the universal level. Giving the competitive market environment in Nigeria, small firm’s needs managers to play a critical role in dealing with the market forces this is particularly important considering Nigeria unique culture. These characteristics require new capability in innovation, risk-taking with more challenging management. A dynamic, open, competitive environment such as in the Nigeria market unavoidably redesigns expectations and priorities of managers, particularly the value held by them. In the light of the above, researchers suggested for empirical study that will examine managerial role, cultural value and high performance within this context (Bhatnagar, 2007; Kuada, 2010; Li & Zhang, 2007). Following this suggestion this study aim to fill part of this gap by making contribution to the body of knowledge on managerial role, culture, and high performance achievement, which is more or less non-existent in developing economies such as Nigeria (Jamali, 2007).
Literature Review on Managerial Role
Recognizing the importance of the managerial role and a variety of job-related involvement has become familiar in both mono-cultural and cross-cultural literature. Though it has been acknowledged that these frameworks have shortcomings (Pearson & Chatterjee, 2001), global management literature are extremely concern and deeply important in the environment of the major changes taking place universally as globalization filters through various levels of societal and organizational life. As a responsibility, managers play a significant role in shaping organizational strategy and goal by effectively developing policy that support organizational values, objectives and mission (Abugre, 2012). Managers oversee various organizations and have the opportunity to play a greater role in contributing to organizational success by effectively and efficiently developing systems with policies consistent with the organization’s values, goals, and mission. Successful managers in their daily behavior significantly influence the needed learning of their organizations by making successful decision (Gillen, 2000). These managerial resources (knowledge) facilitate organization ability to take advantage of other types of resources to achieve competitive advantage (Barney, 1991). Managers who are not effective in interpersonal communication may not be successful in their performance (Carroll & Gillen, 2002). As manager’s networking and functional experience significantly affects new venture performance (Li & Zhang, 2007). These values help managers to oversee the affairs of the organization to successfully develop systems and strategy that is linked to organizations values, goals, and mission (Baba Abugre, 2014). Managers play a great role in selecting and developing schedule, creating investment opportunities, and arranging on-tradable assets to attain effectiveness and appropriate returns from innovation (Augier & Teece, 2009). Managers articulate goals, assist in evaluating opportunities, set culture, develop trusting relationship, and play an important role in the key strategic decisions (Augier & Teece, 2009). They negotiate, and buy, sell or swap investments/assets, coordinate internal assets, transact with the owners of external assets, plan and implement new “business models,” which define the architecture of new businesses (Chesbrough & Rosenbloom, 2002). The smart performance of these responsibilities assists in achieving strategic fit not only with internally controlled assets, but with the assets of alliance partners (Augier & Teece, 2009).
Ismail et al. (2014) found that managerial orientation to economy, ethical responsibilities, and competency have significant effect in discharging corporate social responsibility. Their sample from a selected location was not adequate to predict the managerial role of corporate social responsibility (CSR) implementation for the entire companies in Malaysia. Giving the competitive market environment in Nigeria, small- and medium-scale enterprises (SMEs) needs managers to play a variety of role to deal with the market forces this is particularly important considering Nigeria unique culture. Therefore, the extent manager plays a critical role in achieving asset selection and the coordination of economic activity, mainly when balancing assets have to be assembled.
Organizational Culture
Organizational culture is a significant element in sustaining long-term organizational performance and also serves as a basis for achieving competitive advantage in unstable business environment if properly nurtured, learnt, and shared (Gupta, 2011). Achieving high performance go beyond creating learning organization, but building a culture of organizational analysis and high agility (Wolf, 2008). Building a strong culture will serve as a powerful tool to implement creative idea, influence employee’s behavior and enhance performance (Lee & Yu, 2004). This is based on the believed that people are the organizations most valuable resource (assets) thus, managing them is not directly by computer report but by good organizational culture (Hartog & Verburg, 2004). On this note, managers must shape and build a culture that is more favorable to both employee and the organization in order to achieve the needed organizational commitment (Ezirim et al., 2012). The more employees realizes that an organization offers opportunity for dialogue and has a well-connected system with good leadership the better they will be more committed to the organization (Joo & Lim, 2009; Joo & Shim, 2010). Because organizational culture significantly influence long term organizational performance (Belassi et al., 2007; Robinson et al., 2005; Shore, 2008; Tseng, 2010; Wang & Liu, 2007; Zheng et al., 2010) high performance work system (Hartog & Verburg, 2004) competitive advantage and knowledge conversion (Tseng, 2010), project performance (Gu et al., 2014). Jones et al. (2006) reported that organizational culture serve as a knowledge resource because its permit managers to acquire share and manage knowledge within an environment.
While the argument continues to trail, Schneider et al. (2012) argued that no precise agreement on what culture is or how it should be studied. In view of this, organizational researchers suggested that studies should be strengthened by the inclusion of organizational culture to strengthen the relationship (Bagorogoza & de Waal, 2010). As organizational culture will help managers to meet employees culture-specific desire, which in turn lead to superior outcomes (Huang & Rundle-Thiele, 2014). Following Bagorogoza and de Waal (2010) culture plays the role of moderating variable in this study, because organizational culture is fundamental to the strategic formulation. It defines how an organization functions and relates to its external environment. Yiing and Ahmad (2009) found that organizational culture significantly strengthens leadership behaviors and organizational commitment, job satisfaction (Yiing & Ahmad, 2009), employee motivation, organizational performance, and productivity (Mathew, 2007; Sokro, 2012; Trivellas & Dargenidou, 2009). However, despite researchers suggestions that organizational culture should be re-examined in different context and sector such as Nigeria SMEs and with different measurement (Tseng, 2010; Yesil & Kaya, 2013; Zehir et al., 2011). Little attention has been given toward culture and high-performance research and was within the developed country. Having observed this weakness, this study will fill the gap in the context of Nigeria SMEs. It is expected in this study that organizational culture as a moderator will help to strengthen the managerial role and high-performance achievement relationships.
Method
The study employed a quantitative research design. The data used were generously made available to the author by Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). SMEDAN has a directory that lists all SMEs in Nigeria according to size, function and sector, the directory remained the best and reliable available source that researchers examining small firms in Nigeria can extract a sampling frame. The study has a sample of 250 senior managers drawn from 500 food and beverage SME in Lagos Nigeria that has spent 10 years in the Nigeria market. The state with the most populated small firms in Nigeria. The rationale for choosing small firms that has spent 10 years’ experience in the market is that spending 10 years in the industry or business is sufficient for them to access high-performance characteristics. We first sent an email to the senior managers of these firms explaining the objective of the study to solicit their permission to partake in this survey. Previous studies have established that data provided by top managers are highly reliable and valid like those from multiple sources and objective data (Miller et al., 1997; Zahra & Covin, 1993). Specifically, considering the small size of these firms, the respondents should have a comprehensive understanding and represent a reliable source for the desired information. We collected 198 completed and as valid questionnaires with a response rate of 39.6% (198/500). From the responses, 64.3% were from the food industry, while 35.7% were from beverages. Among the responding senior managers, 72.5% have obtained their bachelor degree, 21.7% had a master degree, and 5.8% were PhD holder. We did not record any significant differences between responding firms and non-responding firms in relation to size with age.
Measures
A draft survey questionnaire was designed to measure the variables. Three key organizational factors were employed in this study. These factors are managerial role, high performance and organizational culture. The questionnaire distributed contains demographic and data about the variables examined. The demographic data encompasses the respondent’s gender, age, education, and the type of industry were used to develop the profile of the managers. Additionally, demographic data in relation to academic discipline, the type of organization that the managers worked, the size of the institution and company ownership were also obtained. Managerial role was operationalized as the ability of managers to mobilize personal contacts, knowledge, identify the new idea and cooperate with others to achieve competitive advantage for the organization. Organizational culture is the pattern of shared values and beliefs that help members of an organization understand why things happen and thus teach them the behavioral norms in the organization. A high-performance organization is an organization that has achieved both financial and nonfinancial outcome better than its competitors over a minimum period of 5–10 years. A total of 42 were used for this study. Sixteen items of the managerial role were adopted from the study conducted by Denison et al. (1995). The 16 items have been used by previous researchers and were shown to be reliable and valid for measuring managerial role. Organizational culture items were measured by 16 items adopted from the study conducted by Deshpandé et al. (1993). High performance was measured by 10 items adopted from Bagorogoza & de Waal (2010). Studies have reported that all the items adopted for this study have adequate internal consistency above 0.76. Managers were requested to rank each item according to their importance, ranging from five (strongly agree) to one (strongly disagree). They were requested to report their expectations on a five-point Likert scale. The data reliability and validity for this study was conducted to establish the internal consistency of the scale. The reliability of all the items was examined with Cronbach’s alpha. A Cronbach alpha coefficient of 0.78 for managerial role, 0.73 for high performance, and 0.82 for culture was achieved. All scales had reliabilities above the minimum suggested 0.70 thresholds. The measurement was considered satisfactory, in line with existing literature which stated that an alpha of 0.70 and above is considered quite reliable. The validity was also checked by three experts, including a professor and two assistant professors from Nigeria university to examine the quality of the survey instrument in terms of wording, format, clarity, simplicity and ambiguity. The study employed Harman’s one-factor test to check the presence of common method variance. All the measures were subjected to factor analysis, and then determine the number of factors that explain the variance in the measures. The findings showed that no single factor accounted for a majority of the variance. The screen plots were also examined in this study and the result showed no sign of a common method bias.
Results
Correlation Matrix and Summary Statistics.
Results of Regression Analyses.

Discussion and Conclusion
How do the intangible assets or resources of the manager’s matter in high-performance achievement in small firms in a highly competitive environment? With a sample of small firm senior managers in Lagos Nigeria, we examined simultaneously the roles of managers’ organizational culture and high-performance achievement. We found that managerial role and high-performance achievement are significantly related. The finding is consistent with the study conducted by (Augier & Teece, 2009; Li & Zhang, 2007; Noon et al., 2013; Tymon Jr et al., 2011) that managerial role is a significant factor for achieving superior organizational performance. Manager’s behavior shapes employee’s attitudes, behaviors and level of commitment to organizational performance (Gould-Williams & Davies, 2005; Richard et al., 2009). This therefore indicated that to a wider context managerial role has a great effect on organizational performance regardless of the settings or sectors. Richard et al. (2009) and Gould-Williams and Davies (2005) also supported that managerial behaviors play a significant role in shaping employees level of commitment and attitudes toward organizational performance. Because managers articulate goals, evaluate business opportunities, build trust, strengthens the important relationship with stakeholders and ensures that the growth of the firm is sustained for the future. It is interesting to note that the intangible assets or resources (knowledge) of managers in small firms have a significant positive influence in the firm’s achievement of competitive advantage. A highly competitive global economic market challenges managers to fully explore their intangible resource when engaging in business to better identify and exploit opportunities for improving firm competitiveness. Managers oversee the firms and play a critical role in ensuring firms effectiveness by efficiently developing systems and policies that aligned with the firm’s values, goals, and mission. Because small firm’s faces survival, managerial resources are keys to the firm’s competitive advantage across different institutional
The positive result is not surprising because of the nature of market competition in Lagos Nigeria where managers thrive harder to ensure their firms achieve better performance, believing that organizational success or failure is subject to manager’s capability. As such, in most cases, managers in small firms, sacrifices their personal and family gain for their firm goals, work harder to ensure a successful operation of the business. Besides, since experience is a prime source of learning and development, it is possible that the experience of the respondents in managerial role contributed significantly to the achievement of the positive result. Through experience, managers appear to develop better skills to effectively cope with the uncontrollable factors that may hinder other SMEs to survive after their first five years in the business environment. Because the way a firm shape their business environment is impacted by the differences in the quality and experience of its managers. For instance, through market experience, managers know how to deal and expect to be dealing with uncontrollable factors. Because managers’ motivation and attitude toward risk vary from one firm to another based on their ability to articulate goals, assess business prospect and the important strategic decisions. Additionally, the heterogeneity of knowledge that manager’s poses make them more resourceful and innovative. It is their creative and innovative role that helps their firms to achieve higher performance. For instance, approximately all the raw materials used by most small firms in developing economy particularly Nigeria are imported, if managers have no adequate knowledge of the cost and when to import these raw materials it will negatively affect the firm goals and performance by increasing organizational cost. Since managers play a greater role in selecting resources, making investment choices, and in coordinating non-tradable assets to achieve organizational effectiveness and suitable returns from innovations. Hence, the unbalanced distribution of resources can jeopardize the firm’s achievement of higher goals and create unfavorable effects on both current and future performance of the firms.
Similarly, because managers are viewed as agents of change in their organizations, their behavior plays a significant role in facilitating organizational goals, shaping employees attitudes and actions toward work, and their level of commitment to their jobs. Therefore, for SMEs to achieve higher performance, they must have managers whose goals and passions are directed toward responsible behaviors beneficial to the firms, sharp in thinking to understand employee’s strengths and weaknesses. When managers demonstrate an excellent relationship with the subordinates, it enhances subordinate psychological empowerment. That is, when employees recognize that their manager adds value to the quality and quantity of their job, they will put more effort to achieve higher performance. Similarly, when employees observe that their manager contributes to the job both in terms of quality and quantity they too reciprocate with a higher contribution. Managerial behaviors play critical roles in shaping employees’ level of commitment and attitudes toward organizational goals achievement. Again, employees may have the intention to quit the firm possibly because of low salary package commonly found among smaller firms but, with an excellent relationship with the manager, he/she may stay longer to be part of the team, hoping there will be future opportunities in the organization. Therefore, to achieve desired organizational goals, managers should be able to show their managerial capability as it represents a unique resource for every organization to achieve sustainable competitive advantage. Failure to grasp capability of the business, pose difficulty in managers understanding of societal demands. A manager who solely depends on goal setting without developing action to achieve the goal may restrict their organizational goal attainment.
The hierarchical regression result showed that organizational culture moderates the relationship between managerial role and the firm’s achievement of high performance. This is consistent with Jones et al. (2006) that organizational culture serves as a knowledge resource because it assists managers to acquire, share and manage knowledge within the organization. When managers take steps to ensure a fit with the culture of the organization, managers will achieve higher performance with reasonable resources (Ezirim et al., 2012). Huang and Rundle-Thiele (2014) also supported that cultural congruence will help managers to better meet employees cultural needs leading to better outcomes through employee satisfaction. Its suffix to say that regardless of the context, firms culture remain an important factor in sustaining long-term performance and serve as a basis for achieving competitive advantage in unstable business environment if appropriately nurtured, learnt and shared. Because people are organizations most valuable resource, managing them requires a good organizational culture. As such, managers must shape and build a culture that is more favorable to all stakeholders to achieve the needed commitment to sustainable goals. A significant feature of note is that nearly all influential managers drew their values from their firm’s culture.
A strong deduction from this study is that the strength of the current business culture dominates apparent values, regardless of the nature or environment of the firm. Organizational culture helps to allocate and leverage managerial resources to achieve company goals through values, ritual, behaviors, management systems and visionary planning. In other words, the value system of an organization shapes managerial behaviors and reaction to set goals. Organizational culture is the key to good leadership that organization must pay attention to in order to achieve business performance and remain innovation in processes, products and technologies. As such, managers must shape and build a culture that is more favorable to both employee and the organization in order to achieve higher firm goals. Organizational culture serves as a knowledge resource because it assists managers to acquire share and manage knowledge within the organization. When manager’s personal value and organizational value aligned, the readiness to meet measurable goals is significant. Similarly, when the manager’s beliefs and values align with the objective of the firm, such will produce a greater output. Thus, as managers take steps to ensure a fit with the culture of the organization, managers will achieve higher performance with reasonable resources. Cultural congruence will help managers to better meet employee’s cultural needs leading to better outcomes. Through organizational culture, managers will be able to create a work environment where employees value one another. Through this, employees will feel comfortable to learn, gain new skills and facilitate the growth potential of the organization. Hence, organizational culture is the key to good managerial value and style to remain competitive in the market.
This study has contributed to the literature in numbers of ways. First, while the managerial role has long been established by previous researches, the majority of prior researches pay attention to multinational large companies in developed market economies. Comparative, small firms in transition economies face more challenges as the institutional environment as well as strategic factor markets have not been well developed in developing economies. The present research contributes to this line of study by empirically showing how managerial resources are connected to high-performance achievement among small firms in a transition economy. The present research advances the management literature by offering empirical support that organizational culture strengthens managerial resources in high-performance achievement. We strongly believe that the result will inspire future research to go beyond ties and pay attention to a wider variety of managerial resources that will affect high-performance achievement. The present study has a number of limitations that also recommend directions for further study. It is interesting to note from the result of this study that as manager’s values and role combined to create an organizational value plan, improvement attention requires understanding in the light of the paradigms of small firm settings with regards to a managerial role and its diffusions in the organizational culture as well as functioning. It would have been of significant interest had longitudinal data of five to 10 years been obtainable; though, measurement of changes from one point in time to another is not conceivable in the present study. But, there is a crucial call to examine how market changes are perceived and acted upon by the small firm’s senior managers in other developing countries.
Appendix
Footnotes
Declaration of Conflicting Interests
Funding
The author received no financial support for the research, authorship, and/or publication of this article.
