| Summary: | The purpose of this study is to test the relationship between specific capabilities of Cyprus' government and performance and the impact of performance on Cypriots' prosperity. Via the resource-based view model (RBV), it was hypothesized that each capability (i.e., entrepreneurship, motivation, investment, and adaptation) is positively related to Cyprus' government achievement of higher performance. It was also hypothesized that performance is positively related to prosperity. Data collected from 200 Cypriot citizens, aged 18 or over. Using correlation analysis, the study shows that entrepreneurial and adaptive capabilities have a statistical strong positive relationship with performance. In turn, performance has a strong positive relationship with prosperity. Several implications can be drawn from this study's findings for democratic governments and interesting directions for future research are provided.
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