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The Driving Forces for the Practice of Strategic Planning in SMEs: Evidence from Harare Metropolitan Province, Zimbabwe

Author

Listed:
  • Maxwell Sandada

    (University of Zimbabwe)

  • Raynold Tinomudaishe Chikwama

    (University of Zimbabwe)

Abstract

Despite Zimbabwe sharing with the rest of the world, the notion that SMEs are the impeccable engines to economic revival, growth and development, many of the nation`s SMEs are plagued with high failure rates. Previous studies carried out in most foreign countries suggested that the high failure rate of SMEs was attributable to lack of strategic planning among a host of other factors. Against this backdrop, the purpose of this study was to examine the driving forces for the practice of strategic planning in SMEs. A quantitative cross sectional study was conducted among active SMEs who are registered with the Ministry of Small and Medium Enterprises and Cooperative Development in Zimbabwe. The study revealed that globalisation, business ownership motivations, environmental dynamism and innovation & technological advancement have a positive and statistically significant influence on the adoption or practice of strategic planning among SMEs. The study has important implications for the practice and implementation of strategic planning among SMEs especially in the context of a developing country such as Zimbabwe.

Suggested Citation

  • Maxwell Sandada & Raynold Tinomudaishe Chikwama, 2016. "The Driving Forces for the Practice of Strategic Planning in SMEs: Evidence from Harare Metropolitan Province, Zimbabwe," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 95-114, August.
    • Handle: RePEc:dug:actaec:y:2016:i:4:p:95-114
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3268/3448
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    References listed on IDEAS

    as
    1. Frédéric Delmar & Scott Shane, 2003. "Does business planning facilitate the development of new ventures?," Strategic Management Journal, Wiley Blackwell, vol. 24(12), pages 1165-1185, December.
    2. Giovanni Gavetti & Daniel A. Levinthal & Jan W. Rivkin, 2005. "Strategy making in novel and complex worlds: the power of analogy," Strategic Management Journal, Wiley Blackwell, vol. 26(8), pages 691-712, August.
    3. Maxwell SANDADA, 2015. "STRATEGIC PLANNING DIMENSIONS IN SMALL AND MEDIUM ENTERPRISES (SMEs) IN SOUTH AFRICA: THEIR RELATIVE IMPORTANCE AND VARIATIONS IN SELECTED DEMOGRAPHIC VARIABLES," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(1), pages 1-8, January.
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