Does Strategic Planning Foster Firm Performance? Examining The Mediating Role Of Competitive Advantage

The study investigated the influence of strategic planning upon firm responsiveness performance following the mediation of competitive advantage. A positivist paradigm guided the study. Thus, a quantitative survey was employed to collect and analyse data from 206 micro, small and medium enterprises...

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Bibliographic Details
Published inAfrican Journal of Innovation and Entrepreneurship (AJIE) Vol. 3; no. 1; pp. 205 - 229
Main Authors Mashingaidze, Mugove, Phiri, Maxwell
Format Journal Article
LanguageEnglish
Published London Adonis & Abbey Publishers Ltd 01.04.2024
Subjects
Advantages
Business metrics
Competition
Competitive advantage
Employees
Income distribution
Organizational performance
Owners
Responsiveness
Small & medium sized enterprises-SME
Small business
Strategic management
Strategic planning
Variables
South Africa
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Summary:The study investigated the influence of strategic planning upon firm responsiveness performance following the mediation of competitive advantage. A positivist paradigm guided the study. Thus, a quantitative survey was employed to collect and analyse data from 206 micro, small and medium enterprises (MSMEs) in South Africa. Applying the structural equation modelling to test the hypotheses, the results revealed a significant positive relationship between strategic planning and responsiveness performance. The results also indicated the mediation of competitive advantage in this relationship thereby supporting both proposed hypotheses for the study. The study is the first of its kind to combine three strategic management concepts in one study. It presents critical explanations and potential implications through which strategic planning prospects could help MSMEs owners and managers enhance business performance. Future research directions are discussed towards the end of the article.
ISSN:2753-3131
2753-314X
DOI:10.31920/2753-314X/2024/v3n1a10