Managerial competencies and performance in research and development institutions in India: a three-way interaction model

Using the resource-based view as a theoretical underpinning, this study explores managerial competence’s influence on performance. A conceptual model is developed by emphasizing the inter-relationships between five types of competencies. The individual-level competencies are linked to firm-level resource outcomes by employing micro-foundational logic. In this research, using a cross-sectional design, data were collected from 413 employees from research and development (R&D) organizations in India through stratified sampling. After checking the psychometric properties of the survey instrument with the Lisrel package of structural equation modeling, hypotheses were tested with PROCESS macros. The results indicate (i) managerial competencies were a precursor to expert competencies and operational competencies, (ii) operational competencies mediated the relationship between managerial competencies and expert competencies, and (iii) professional competencies (first moderator) and core competencies (second moderator) moderate the relationship between operational competencies and expert competencies, and (iv) expert competencies were positively associated with performance. The study is exploratory in unfolding the interrelationships between five types of competencies. This study is a unique attempt to investigate the inter-relationships between various competencies and their effect on performance, particularly in R&D institutions in India. This research uniquely contributes to the literature on competency framework and human resource management theory. The findings suggest recommendations to policymakers and decision-makers interested in maintaining sustained competitive advantage.