Investigating Technical Capabilities as a Moderator Between Organizational Communication and Firm Performance in SMEs

Abstract

This study examines the moderating role of technical capabilities in the relationship between organizational communication and firm performance among small and medium-sized enterprises (SMEs) in Ghana. The focus is on determining whether higher levels of technical capabilities enhance the influence of effective communication on the financial and operational outcomes of SMEs, particularly within environments characterized by limited resources and technological adoption. A quantitative, cross-sectional research design was adopted, using a structured web-based survey administered to 230 SME managers across diverse sectors in Ghana. The data were analyzed using Smart PL SEM 4 techniques to test the hypothesized moderating effect of technical capabilities on the communication–performance relationship. Results show that organizational communication positively influences firm performance, and this relationship becomes stronger when SMEs possess higher technical capabilities. The study also reveals that SMEs with enhanced technical infrastructure and digital tools are more efficient in knowledge sharing, decision-making, and customer engagement, leading to improved profitability and competitiveness. The study was limited to SMEs within a single country and relied on self-reported data, which may introduce bias. Future research could adopt a longitudinal approach or extend the analysis to other developing economies for comparison. Managers of SMEs should invest in strengthening their technical capabilities to maximize the benefits of effective communication. Integrating technology-driven communication systems can improve coordination, innovation, and responsiveness to market changes. Enhanced technical capabilities can support broader economic development by improving SME sustainability, employment generation, and contribution to national productivity. This study contributes to the growing literature on SME performance by highlighting technical capability as a moderating factor that strengthens the communication–performance relationship, particularly in developing economies such as Ghana.