The Impact of Strategic Planning Activities on Transylvanian SMEs - An Empirical Research

The economic growth of developing countries can be sustained by the expansion of private sector, as they are the engine of growth. As a consequence, it is important to accelerate the growth of SMEs in order to gain sustainable development in this era. Many scholars have argued that the strategic planning is one of the salient factors which contribute to the performance of SMEs. However the recent literature provides contradictory findings about the relationship between strategic planning and performance. Based on these evidences, the main objective of the study was to examine the relationship between strategic planning and performance of SMEs. More importantly the study focused on strategic planning process where, there is a dearth of studies which have concentrated on strategic planning process. Specific objectives include toi dentify the level of involvement in the process of strategic planning and to examine difficulties faced by SMEs in engaged in strategic planning process. Data were collected through personally attended structured questionnaire distributed among 275 owner/managers of SMEs in Western province. Both descriptive and inferential statistics techniques were used to analyze the collected data. The findings revealed that the SMEs are moderately engaged in strategic planning process and there is a positive relationship between strategic planning and business performance.

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“…Conversely some studies have failed to find a positive relationship as such (Dahlgaard and Ciavolino, 2000;Gică and Negrusa, 2011).…”

Section: Introductionmentioning

confidence: 95%

The relationship between strategic planning and business performance: an empirical study of manufacturing SMEs in Western province in Sri Lanka

Wijetunge

Pushpakumari

2014

Kelaniya J Manage

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“…As long as the firms use effective planning more propensity to have high performance than those who do not (Kargar and Parnell, 1996). Strategic planning helps firms to define their competitive advantage which ultimately ensures the survival or growth of the business (Wijewardena ci (ii., 2004 Gicà andNegrusa, 2011). Thus, the strategic planning is so iniportant to examine in the context of SMEs.…”

Section: The Need/importance Of Planningmentioning

confidence: 99%

“…Baird ci at (1994), Glen and Weeravardena (1996), Kargar and Parnell (1996). Gicä and Negrusa (2011) found that a negative relationship. Greenley (1994) 134 has presents several arguments for contradictory findings.…”

Section: Performance Of Smesmentioning

confidence: 99%

“…Another possible reason for contradictory in the results reported in previous studies is that the most of these studies analyzed only one aspect of strategic planning or several aspects. In a comparison of the findings of the previous studies, there were only two studies which had considered the strategic planning process (El-Mobayed, 2006 andGici andNegrusa, 2011). Other studies had concerned the elements or several characteristics of strategic planning.…”

Section: Performance Of Smesmentioning

confidence: 99%

“…A very recent study based on 200 SMEs in Romaruia concentrated on the impact of strategic planning activities on SMEs performance. Components of strategic planning process were mission, objectives, internal and external analysis, strategic alternative selection, implementation, control and evaluation (Gicä and Negrusa, 2011).…”

mentioning

confidence: 99%

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The Impact of Strategic Planning Activities on Transylvanian SMEs - An Empirical Research

Cited by 15 publications

References 7 publications

The relationship between strategic planning and business performance: an empirical study of manufacturing SMEs in Western province in Sri Lanka

The relationship between strategic planning and business performance: an empirical study of manufacturing SMEs in Western province in Sri Lanka

Strategic Planning and Business Performance: An Empirical Study of Manufacturing SMEs in Western Province

Developing Optimized Strategy by Comprehensive Framework of Strategy; Case Study in a Construction Inspection Company

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