Conceptualizing Recourses as Antecedents to the Economic Performance of Family-Based Micro-enterprise – the Moderating role of Competencies

Purpose: The development of family-based Micro-enterprises has attracted the attention of regulators, micro-finance institutions and other stakeholders either in developing or least developed countries. In the finance literature, prior studies have examined the determinants of the development of the microenterprise. However, several avenues need to be examined for family-based microenterprises. The study aims to explain the economic performance of microenterprises from resource-based theory and human capital perspectives. Design/methodology/approach: Based on critical review and theoretical grounding, this study proposes a conceptual framework that bridges tangible and intangible resources with the economic growth of micro-enterprises. Originality/value: The study finds that human capital in the form of competencies is one of the variables that has received little attention and yet to be examined as a moderating role. As enterprises that possess competencies and capabilities are more likely to have higher levels of growth and profitability.