The Role of Strategic Planning and Flexibility in Shaping SMEs Market Orientation in Turbulence Business Environment

Abstract

This study aims to investigate the impact of environmental turbulence, strategic planning and strategic flexibility toward market orientation. One hundred and eighty-six managers of Small and Medium Enterprises in Malang City, Indonesia were surveyed by using purposive sampling technique. Data was analysed by using Partial Least Squares. Internal environment has positive significant effects on both strategic planning and strategic flexibility. This study also found a significant effect of external environment on strategic flexibility and strategic planning. The study determined that strategic planning played an important role in mediating the effect of business performance on market orientation. The model is considered a comprehensive model because it was not only analysing important constructs namely external and internal environment, strategic planning and strategic flexibility, but also tested the interrelationships among these constructs in predicting market orientation. The study also provides empirical evident about the mediation role of strategic planning on the effect of external environment on market orientation and also on the mediating role of strategic planning on the relationship between internal environment on market orientation.

The Moderating Effect of External Environment on the Relationship Between Strategic Entrepreneurship and Performance of Selected Oil and Gas Service Firms in Lagos and Rivers States, Nigeria

“…These studies revealed that both entrepreneurial orientation and planning flexibility have positive effects on firm performance in different industries except oil and gas industry that was not considered among these past studies (See Arshad et al, 2014;Dibrel, Craig, & Neubaum, 2014;Gupta & Wales, 2017;Oladele & Olayiwola, 2018). Relatedly, Sumiati, Rofiq and Pramono (2019) and Mbengue and Ouakouak (2011) were in supported of the positive and significant findings among past studies that planning flexibility and entrepreneurial orientation positively and significantly affected firm performance. Both Sumiati et al (2019) and Mbengue and Ouakouak (2011) further asserted that external environment significantly affected firm overall performance in SMEs industry but they failed to investigate how external environmental factors affect both strategic entrepreneurship and firm performance in the oil and gas industry.…”

Obstacles and strategies for the sustainability of Indonesian small and medium enterprises during Covid-19 Pandemic: A study case at Reban Lestari Farm Kolaka Sulawesi Tenggara

“…Those two strategies are considered adequate for MSMEs to be applied. According to [26], strategy as planning plays an important role in mediating consumeroriented business performance. Determining the model (strategy) in business can significantly assist SMEs in making decisions…”

Determination of the influence of the economic cycle stages on the innovative potential of small entrepreneurship

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