Investigating the Influence of Managerial Competence on Managerial Effectiveness and Team Cohesion in Small and Medium Enterprises in the Nigerian Oil and Gas Industry, Port Harcourt

This study investigates the competencies required by SME owners to enhance managerial effectiveness and team cohesion, addressing a gap in the literature on managerial competence in small and medium enterprises. The research focuses on the Nigerian oil and gas industry, a context in which indigenous capacity development is a national priority. The study examines the direct effects of managerial competence on managerial effectiveness and team cohesion, and further explores the potential moderating effects of role ambiguity and role conflict on the relationship between team cohesion and managerial effectiveness. Previous studies have largely overlooked these relationships, highlighting the need for an integrated framework linking managerial competencies to team and organizational outcomes. A quantitative research approach was adopted, guided by a positivist philosophical stance. Data were collected through a cross-sectional survey, yielding 211 usable responses from SME employees. Structural Equation Modelling (SEM) was employed for data analysis, including descriptive statistics, regression, correlation, and model-fit assessments. Key constructs were measured using validated instruments, ensuring reliability and alignment with the study objectives, while ethical standards were adhered to according to the Unicaf University Research Ethics Committee (UREC). Findings indicate that three core managerial competencies—problem-solving, effective leadership, and efficient decision-making—significantly enhance managerial effectiveness. Team cohesion mediates this relationship through two dimensions: task cohesion (cooperation and collaboration) and social cohesion (inclusion and diversity). Contrary to expectations, role conflict and role ambiguity do not significantly moderate the link between team cohesion and managerial effectiveness in contexts where managers encourage innovation and the workforce is experienced and educated. These results support the development of a framework to strengthen managerial competence and team bonding in SMEs. The study contributes to theory and practice by linking managerial competencies to team and SME growth, and offering insights for policymakers, SME owners, and funding agencies regarding capacity development and eligibility for support. The findings also provide a foundation for further research on managerial competence, team dynamics, and organizational effectiveness in SMEs across different sectors and cultural contexts.