Strategic decision-making in small and medium enterprises in South Africa

Southern African Journal of Entrepreneurship and Small Business Management

Field Value
Title Strategic decision-making in small and medium enterprises in South Africa
Creator van Wyk, Ireze
Subject — small and medium enterprises; SMEs; SMMEs; strategic decision-making; sustainable SMEs; strategy; Delphi technique; South Africa.
Description Background: Effective strategic decision-making (SDM) is a key element to ensure the sustainability and continuous business performance in any business. This is especially true in large organisations. Limited research has been conducted to understand SDM processes in small and medium enterprises (SMEs) in South Africa.Aim: To determine whether SMEs apply SDM in their businesses and if benchmark methodologies and process can be defined for SMEs in a South African context.Setting: Participants in this research study were managers and/or owners of South African SMEs.Methods: This study employed a qualitative approach, implementing the Delphi technique. Open-ended questions were used in round one and thematic analyses assisted to identify themes. In round two, rating scales were used with the aim to reach consensus. Consensus was reached after the second round. A total of 20 SME owners and/or managers participated in round one and 10 in round two (50% drop-out rate).Results: The study reveals a benchmark SDM process, highlighting and/or validating unique activities, such as internal reasons for SDM, analysing financial information, developing alternatives, choosing an alternative that preserves the entity in terms of cost, gathering non-financial information, communication and lastly, reviewing the effectiveness of the strategic decision.Conclusion: The findings will allow SME managers and/or owners to gain insight into SDM. Such knowledge can lead to comprehensiveness in SDM, consistency in SDM activities and, ultimately, improved SDM.Contribution: The theoretical contribution includes a benchmark process for SDM in SMEs, adding to the SMEs’ SDM body of knowledge.
Publisher AOSIS Publishing
Date 2023-09-21
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — —
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/sajesbm.v15i1.684
Source The Southern African Journal of Entrepreneurship and Small Business Management; Vol 15, No 1 (2023); 12 pages 2071-3185 2522-7343
Language eng
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Rights Copyright (c) 2023 Ireze van Wyk