Relationship between strategic planning and financial performance: The case of small, micro- and medium-scale businesses in the Buffalo City Metropolitan
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | Relationship between strategic planning and financial performance: The case of small, micro- and medium-scale businesses in the Buffalo City Metropolitan | |
| Creator | Gomera, Shingirai Chinyamurindi, Willie T. Mishi, Syden | |
| Description | Background: Arguments are made for strategic planning as an important organisational capability used to realise a firm’s goals and objectives. Despite this, conflicting views appear to emerge from the extant literature over the link between strategic planning and financial performance. Notably, within a South African context, a few studies have been conducted ascertaining this relationship especially within small, medium and micro-enterprises (SMMEs). Aim and setting: The study aimed to determine this relationship using survey responses from a sample of 225 respondents classified as owners or managers of SMMEs operating within theBuffalo City Metropolitan in the Eastern Cape Province of South Africa. Method: Data were analysed through regression and correlation analysis. Results: Findings reveal strategic planning to have a positive relationship with the financial performance of the SMMEs. Furthermore, aspects of strategic planning (formulation, implementation, evaluation and control) were also found to have a positive relationship with financial performance. Conclusion: Suggestions for theory and practice are made based on these findings, including how the adoption and usage of strategic planning cannot only be an important organisational capability but also a basis for attaining a competitive advantage within the SMME. | |
| Publisher | AOSIS Publishing | |
| Date | 2018-05-09 | |
| Identifier | 10.4102/sajems.v21i1.1634 | |
| Source | South African Journal of Economic and Management Sciences; Vol 21, No 1 (2018); 9 pages 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/1634/1284
https://sajems.org/index.php/sajems/article/view/1634/1283
https://sajems.org/index.php/sajems/article/view/1634/1285
https://sajems.org/index.php/sajems/article/view/1634/1274
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