Implications of Strategic Planning in SMEs for International Entrepreneurship Research and Practice (original) (raw)

Strategic Entrepreneurship: The Role of Strategic Planning and Marketing in SMEs

2006

This paper proposes a concept called 'strategic entrepreneurship' that is grounded in the three academic fields of strategy, entrepreneurship and marketing. Regrettably, those concepts are only rarely or partly applied in SMEs and young ventures. We therefore argue for a synthesis of the disciplines, proposing a construct that includes both the concepts of entrepreneurship and marketing on the basis of strategic management. In this paper, the focus lies on Strategic planning. The paper reviews the empirical studies of strategic planning in SMEs and discusses their implications for strategic entrepreneurship.

THE ROLE OF STRATEGIC PLANNING IN SMEs: LITERATURE REVIEW AND IMPLICATIONS

Summary This paper examines how and to which extent small and medium-sized enterprises (SMEs) apply strategic planning within their business activities. Specifically, we address the question of why SMEs seem to plan less than big companies, whether strategic planning and corporate success correlate with each other and whether strategic planning is a function of increasing company size.

Strategic planning in SMEs, a Review of the English and French Literature

2008

Abstract This paper examines the English and French literature relating to the nature and value of strategy and planning within the small firm. It seeks to follow the literature trail that has emerged since the publication in the mid-1980s of a benchmark paper on planning and strategy in small firms by Robinson and Pearce. The literature review found that despite the passage of 24 years the no discernable pattern or generic theory relating to the value of planning or how such planning should take place within small firms has emerged.

Strategic Planning in Small and Medium Enterprises (SMEs): A Case Study of Botswana SMEs

Although small and medium enterprises contribute immensely to the economy of a country, they are characterised by low performance and high failure rate which is often blamed on lack of resources such as funds, land and skilled labour. Many business management specialists argue that even on the availability of such resources, some SMEs still fail due to lack of strategic planning. Extent literature indicates that formal strategic planning improves business performance as it involves deriving a game plan that enables SMEs to anticipate and respond to the turbulent market by arranging their resources and capabilities accordingly. As such, this research investigates the status of strategic planning by SMEs in Botswana. The study also investigates the perceived value of Strategic Planning by SME owner managers, and the extent of planning as well as identifying the barriers that prevent effective strategic planning. Using semi-structured interviews of 36 Small and Medium firms selected across several sectors, the study finds that strategic planning efforts do exist within SMEs but most of these firms engage in strategic planning activities to a limited extent. The study also finds several barriers, which contribute to lack of strategic planning. For instance, the study finds that most SME owner/managers have limited knowledge in the area of strategic planning. Some indicated that they do not plan because of the size of the business. Whereas some admitted that they still possess the traditional based thinking where most business decisions are based on intuition. The findings of this study have implications for policy decision makers and SME owner managers.

SMEs: The Path Towards International Success

Oxford Journal, Special Issue: Emerging Trends and Issues in Management and Economics, ISSN: 1551-4498, 2009

The role of Italian small and medium enterprises (SMEs) in the international economic environment has attracted the attention of many scholars due to the distinctive features of these firms. In particular, their development and longevity paths are critical to a better understanding of the main characteristics of the global economy. Although Italian SMEs manage many of the same issues of other companies, they must also face specific problems, mainly related to their status and to the entrepreneurial behaviour of firm owners. Nevertheless, few empirical studies have stressed the importance of human resources and entrepreneurial behaviour for the performance and growth of Italian SMEs, especially in the international environment, where keen competition and difficulties of obtaining the necessary resources are often insurmountable barriers for SMEs. The main goal of this study is to suggest a “holistic” model to analyze the relations between the internal determinants of the internationalization process of SMEs, by integrating individual-level and firm-level features. The analysis, based on the theories of individual cognitive aspect, international expansion and business strategy, explores the process of internationalization of SMEs from a cognitive perspective. Finally, the present study stresses the central role played by individual expectations and risk perception in understanding the international expansion strategies of SMEs.

Effective strategic planning in small and medium sized firms

Management Decision, 2002

Little attention has been paid to the strategy‐making processes of small and medium‐sized firms (SMEs), or to the effectiveness of strategic planning in the SME sector. Planning often fails because of implementation problems often associated with SMEs’ lack of capability to determine and overcome potential barriers to strategic planning. This paper examines the concept of formal strategic planning, presents the findings of a critical analysis of the suitability of formal planning for SMEs, and identifies some of the barriers which prevent effective implementation of strategic plans. Suggests that SMEs that engage in formal strategic planning experience fewer barriers to implementation than those that do not and that subsidiary firms tend to place a greater emphasis on formal planning than independent firms. Indicates that the eight barriers to deployment examined are experienced to a lesser degree by subsidiary firms compared with independent firms. However, the differences are not ...

Strategic Planning in Entrepreneurial Companies

Handbook of Research on Global Competitive Advantage through Innovation and Entrepreneurship, 2015

Innovation is wheel of change and development. Moreover, strategic planning is wheel and new mode of innovation and entrepreneurship. A growing body of literature, under the title of strategy planning and entrepreneurship, addresses the question of how strategic planning impacts on company's performance, competitive advantages, growth and market share. Therefore, almost every section in the chapter contains reports from empirical research conducted to investigate the different aspects of strategic planning in entrepreneurial companies worldwide. The research includes the most interesting parts of planning and entrepreneurship such as: environment, innovation, planning outcomes, benefits, limitations, etc. We find that surveyed companies introduce planning mostly because of their desire for growth, most of them use the entrepreneurial strategic mode, and their average time horizon for planning is less than three years. Importantly, this chapter opens the scientific door and avenu...

Strategic planning in smaller enterprises – new empirical findings

Management Research News, 2006

Purpose -To analyze the performance implications of essential elements of strategic planning (time span, formalization, frequency of control, and use of planning instruments) in smaller enterprises in a simultaneous way. Design/methodology/approach -The main methods being used for this article were a thorough review of literature for the development of hypotheses and a logistical regression analysis for the empirical evaluation. The study is based on a representative sample of small Austrian enterprises (n = 290). Findings -Planning formalization has a positive and highly significant impact on the probability of belonging to the group of growth firms, whereas other aspects of strategic planning (time horizon, strategic instruments, and control) did not contribute to performance. Research limitations/implications -Employee growth has been used as an indicator for firm performance. Other indicators (e.g. sales growth, profitability, and subjective evaluation of the entrepreneur) might be used to draw a more detailed picture. Additionally, dichotomizing the dependent variable has some weaknesses. Furthermore, only a limited number of industry categories have been controlled for. Practical implications -Practitioners might want to emphasize formal strategic planning in order to enhance the probability of performance. Also, they might want to regard the business plan as a management and learning tool rather than as a pure means to generate funding. Originality/value -This paper is the first to analyze different dimensions of strategic planning in small firms simultaneously. Additionally, it is one of only very few studies outside of the Anglo-American realm, which might be a help especially for European SMEs (small and medium-sized enterprises).

Strategic Management and Entrepreneurship

International Journal of Strategic Decision Sciences, 2020

The aim of this article is to contribute to a better understanding of the relationship between the academic fields of entrepreneurship and strategic management, based on the bibliographical references existing in these two fields. The structure of the article synthesizes the academic works existing in the two fields, seeking to generate new knowledge. The result can be used to increase the integration of these two areas of knowledge. First, it identifies apparent relationships and then focuses more in detail on some of the most important intersections, including strategic management in small and medium-sized enterprises (SMEs) and start-ups, recognizing the central role of the entrepreneur. The content and the process of strategic management are discussed, as well as its important link to the business plan. To conclude, clues are indicated for future investigations.