Small business strategy and performance in a developing economy : an exploratory analysis of Zimbabwe’s small business sector

Rufasha, E

Abstract

Considerably much has been written about the relationship between planning and performance in small firms and yet there is disjointedness and little agreement on the findings. Such a scenario calls for more research in the domain. This study explores the relationship between formal strategic planning and performance in the small business sector of a developing economy. Drawing on the contingency theory of management, the study, inter alia, identifies knowledge gaps within the traditional contingency theory as well as in prior literature, and in addressing such gaps, insightfully contributes to the body of knowledge in this field of study. A mixed methods approach was adopted for rigour in responding to the research questions and hypotheses. The study embraced questionnaire and interview routes with samples of 392 and 24 owner-managers of SMEs in Harare, Zimbabwe respectively. For a more comprehensive analysis of the planning performance relationship, a longitudinal approach was adopted covering three periods. Correlation analysis is employed in establishing the nature of the relationships. Findings established reveal that there is no statistically significant relationship between formal strategic planning and performance in the small business sector within the context of an unstable and hostile environment. Further, an interesting revelation is unearthed where the performance of formal strategic planners is not significantly different from that of non-planners. The study sheds new light on the interplay between the contingency approach and the relationship between formal strategic planning and performance in a developing, yet unstable economy.

Citation

Rufasha, E. (in press). Small business strategy and performance in a developing economy : an exploratory analysis of Zimbabwe’s small business sector. (Thesis). University of Salford

• Thesis Type: Thesis
• Acceptance Date: Sep 28, 2018
• Deposit Date: Oct 3, 2018
• Publicly Available Date: Oct 3, 2018