Managerial capital in subsistence small businesses

Managerial capital is important to the performance of small businesses in developing countries. The values and attitudes of members of the organization possibly condition managerial capital. Small businesses in subsistence markets (subsistence small businesses) tend to have limited managerial capital. This paper analyzes the mechanism through which managerial capital affects organizational and financial performance in subsistence small businesses. The results indicate that managerial capital positively affects all the values and attitudes of companies. However, the mediation of values and attitudes is different: an innovative attitude and learning orientation lead to improvement in both organizational and financial performance; members' involvement improves organizational performance but does not affect financial performance; and environmental concern does not affect organizational performance, it worsens financial performance.