Influence of Manager’s Age, Education Level and Negotiation Skills on SMEs Performance in Peru.

Abstract

It has been reported that small and medium-sized companies contribute to the reduction of poverty and the development of countries. Moreover, managers unique characteristics have also been analyzed to see their influence of firm performance. However, there has been inconclusive results, and this has been commonly studied in developed countries. Based on the literature review, an innovative theoretical model was established to determine the influence of age, level of education and negotiation skills of the manager on the performance of small and medium-sized companies in Peru. Managers’ negotiation abilities have been reported to be as a relevant factor for the success of a company in Peru. This study followed the post-positivist paradigm and quantitative approach. The population consisted of SMEs from different sectors in Lima-Peru. A probability sample group was chosen involving the managers from 215 SMEs. A five-point Likert scale questionnaire was designed based on the literature review which was piloted and validated by five experts. For data collection, participants were reached by telephone to respond the study survey. The data analysis was conducted using the descriptive reporting and the PLS-SEM structural equation modeling in order to test the significance and causal relationships from the tested variables. The results indicated that only manager’s negotiation skills positively influence SMEs performance in Peru.