Journal of Economics, Finance and Management Studies ISSN (print): 2644-0490, ISSN (online): 2644-0504 Volume 6 Issue 1 January 2023 Article DOI: 10.47191/jefms/v6-i1-08, Impact Factor: 6.274 Page No. 64-76 JEFMS, Volume 6 Issue 1 Janaury 2023 www.ijefm.co.in Page 64 Analysis of Management Competencies in the Textile Sector and the Relation with Organizational Performance in the State of Tlaxcala, México Lorena Fernández Cervantes 1 , Rosa Cortés Aguirre 2 , José Luis Moreno Rivera 3 , Elizabeth Montiel Huerta 4 , Alejandra Torres Lopez 5 1,2,3,4,5 Tecnológico Nacional de México (TecNM)/ Instituto Tecnológico de Apizaco (ITA) ABSTRACT: The textile sector in Mexico is crucial for the economy at the national level, it is in the tenth position among the most important manufacturing economic activities in our country, generating industrial growth because it has a link with other productive industries such as the automotive, aeronautical, furniture, among others in accordance with INEGI 2020. This branch is essential due to being a source of employment and economic growth, for this reason it is necessary to examine the aptitude with which managers refer to face the complex conditions in the environment, it is necessary to take into account research on SMEs that allow knowing the characteristics and development of these, through the measurement of management skills in order to have indicators that make it possible to make decisions to support the entrepreneurial culture of the country. Therefore, this research aims to characterize the relationship between managerial competencies as a strategic factor in organizational performance in small and medium-sized companies in the textile sector in the manufacture of wide fabrics and weft fabrics in the state of Tlaxcala to design improvement strategies. The indicators that were taken were leadership, communication, strategic action, development of people, administrative processes, and results orientation for management competencies and in the case of organizational performance, financial performance, business performance and organizational effectiveness were taken as indicators. This study is oriented to a sample of 12 SMEs located in the municipalities of; Santa, Apetatitlán, Contla, Tetla, Ixtacuixtla, San Marcos, Panotla, Zacatelco, Hueyotlipan y Panzacola. A questionnaire on managerial competencies was applied to human resources managers who had a similar rank, to find out how they perceive the managerial competencies of senior managers within the organization and the second questionnaire on organizational performance was applied to the managers of the sector under study. Where it is required that the subjects have information on the subject under study, being only owners, directors, or managers of the companies. The questionnaires have been validated by Psico Consult A.C., SERVIR in the case of management competencies, in the case of organizational performance by Vasconcelos (2017) and a pilot test. The results were able to determine that there is a moderate positive correlation, but the most critical variables must be considered: effective communication and people development, which shows that companies in the textile sector prevail orientation towards results and administrative processes. KEYWORDS: Management skills, strategic factor, organizational performance, textile sector, SMEs I. INTRODUCTION SMEs account for around 90 percent of the total business sector in the world, in Mexico it refers to 97 percent of the entire sector and congregates 75.4 percent of all employment, contributing 45 percent to total formal work and 33 percent of income (GDP) in the economy in rural areas, family businesses and small businesses are practically the only means of employment and income creation, they can be from small distributors of non-transferable services also suppliers of digital items, highly prestigious handicrafts or sophisticated devices with international trade position since its inception (Senado, 2017). Due to its function, it is singularly outstanding in developing nations since it plays an important economic impulse for the generation of sources of work. Information must be collected about SMEs that contribute to understanding the peculiarities of operation and growth of these, through the evaluation of managerial skills with the sole purpose of establishing indicators that promote decision-making for the promotion of a business culture of the nation. (ENAPROCE, 2018).