Capability morphology and firm growth in middle-income economies: evidence from Kosovo’s manufacturing sector

Slavo Radosevic and Fadil Sahiti

Post-Communist Economies, 2025, vol. 37, issue 6, 615-641

Abstract: This paper examines how internal capability structures drive firm performance among manufacturing firms in Kosovo. Using Partial Least Squares Structural Equation Modelling (PLS-SEM) on survey data from 101 firms, we show that production, organisational, and management capabilities form a layered morphology crucial to firm growth. Contrary to conventional assumptions, investments in machinery and equipment do not directly improve performance unless embedded within broader capability development. The findings highlight the primacy of absorptive learning, organisational adaptation, and structured management practices in shaping firm success in post-socialist and emerging economies. These results offer theoretical and practical insights into the capability-building strategies necessary for sustainable industrial upgrading.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/14631377.2025.2510605 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:37:y:2025:i:6:p:615-641

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CPCE20

DOI: 10.1080/14631377.2025.2510605

Access Statistics for this article

Post-Communist Economies is currently edited by Roger Clarke

More articles in Post-Communist Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().