Citation:

Rodhiah, Nur Hidayah, Lerbin R. Aritonang R. "The Effect of Strategic Planning on SME Performance Moderation Effect of Market Dynamism" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 124-129, 2023.

Abstract:

Dynamism is the degree to which market and industrial conditions, as well as the state of technology and overall economic performance, are dynamic. This research intends to investigate how strategic planning and market dynamism interaction affect the performance of small and medium enterprises (SMEs) in Bandung. 80 SMEs in the Bandung region that work in the topic of convection were studied. Samples from purposive sampling were employed in the study. Utilising a google form to distribute questionnaires online for data collection. In empirically testing the research model using the least square partial path modeling (PLS) approach through the smart PLS 4 program. The results of the study show that market dynamism has a positive and considerable impact on the effectiveness of efforts, as well as a positive and large impact of strategic planning on the effectiveness of businesses. The relationship between strategic planning and SME success cannot be moderated by market dynamics. Through the results of this study, it can be a consideration for SMEs to pay attention to strategic planning to improve business performance by seeing changes in the effects of changing market dynamism.

References:

[1] Acquaah, M., Adjei, M.C. and Mensa-Bonsu, I.F. (2008), "Competitive strategy, environmental characteristics and performance in African emerging economies: lessons from firms in Ghana", Journal of African Business, Vol. 9 No. 1, pp. 93-120.
[2] Agyapong, D. (2010), "Micro, small and medium enterprises' activities, income level and poverty reduction in Ghana – a synthesis of related literature", International Journal of Business and Management, Vol. 5 No. 12, p. 196.
[3] Appiah Fening, F., Pesakovic, G. and Amaria, P. (2008), "Relationship between quality management practices and the performance of small and medium size enterprises (SMEs) in Ghana", International Journal of Quality & Reliability Management, Vol. 25 No. 7, pp. 694-708.
[4] Aragon-Correa, J.A., Hurtado-Torres, N., Sharma, S. and García-Morales, V.J. (2008), "Environmental strategy and performance in small firms: a resource-based perspective", Journal of Environmental Management, Vol. 86 No. 1, pp. 88-103.
[5] Arasa, R. and K'Obonyo, P. (2012), "The relationship between strategic planning and firm performance", International Journal of Humanities and Social Science, Vol. 2 No. 22, pp. 201-213
[6] Beck, T. and Demirguc-Kunt, A. (2006), "Small and medium-size enterprises: access to finance as a growth constraint", Journal of Banking & Finance, Vol. 30 No. 11, pp. 2931-2943.
[7] Bryson, J.M. (2011), Strategic Planning for Public and Non-Profit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement, John Wiley & Sons, NJ, Vol. 1.
[8] Chan, R.Y., He, H., Chan, H.K. and Wang, W.Y. (2012), "Environmental orientation and corporate performance: the mediation mechanism of green supply chain management and moderating effect of competitive intensity", Industrial Marketing Management, Vol. 41 No. 4, pp. 621-630.
[9] Cook, P. and Nixson, F. (2000), Finance and Small and Medium-Sized Enterprise Development, Institute for Development Policy and Management, University of Manchester, Manchester.
[10] Dauda, Y.A. and Akingbade, W.A. (2010), "Employee's market orientation and business performance in Nigeria: analysis of small business enterprises in Lagos state", International Journal of Marketing Studies, Vol. 2 No. 2, p. 134.
[11] Freeman, J.P. and Wilmes, D.M. (2009), "Facilitating change through integrated strategic planning", Planning and Changing, Vol. 40 Nos 3/4, p. 224.
[12] Gunasekaran, A., Patel, C. and McGaughey, R.E. (2004), "A framework for supply chain performance measurement", International Journal of Production Economics, Vol. 87 No. 3, pp. 333-347.
[13] Hecker, A. and Ganter, A. (2013), "The influence of product market competition on technological and management innovation: firm-level evidence from a large-scale survey", European Management Review, Vol. 10 No. 1, pp. 17-33.
[14] Hervani, A.A., Helms, M.M. and Sarkis, J. (2005), "Performance measurement for green supply chain management", Benchmarking: An International Journal, Vol. 12 No. 4, pp. 330-353.
[15] Motwani, J., Mirchandani, D., Madan, M. and Gunasekaran, A. (2002), "Successful implementation of ERP projects: evidence from two case studies", International Journal of Production Economics, Vol. 75 No. 1, pp. 83-96.
[16] Mukhamad, N. and Kiminami, A. (2011), "Innovation, cooperation, and business performance", Journal of Agribusiness in Developing and Emerging Economies, Vol. 1 No. 1, pp. 75-96.
[17] Oyewobi, L.O., Windapo, A.O., Cattell, K.S. and Rotimi, J.O.B. (2013), "Impact of organizational structure and strategies on construction organizations' performance".
[18] Papulova, E. and Papulova, Z. (2006), Competitive Strategy and Competitive Advantages of Small and Midsized Manufacturing Enterprises in Slovakia, E-Leader, Slovakia.
[19] Porter, M.E. (2008), Competitive Advantage: Creating and Sustaining Superior Performance, Simon and Schuster, New York, N.Y.
[20] Porter, M.E. and Kramer, M.R. (2002), "The competitive advantage of corporate philanthropy", Harvard Business Review, Vol. 80 No. 12, pp. 56-68.
[21] Robson, P.J., Haugh, H.M. and Screwdriver, B.A. (2009), "Entrepreneurship and innovation in Ghana: enterprising Africa", Small Business Economics, Vol. 32 No. 3, pp. 331-350.
[22] Steiner, G.A. (2010), Strategic Planning, Simon and Schuster.
[23] Wang, C.L. and Ahmed, P.K. (2007), "Dynamic capabilities: a review and research agenda", International Journal of Management Reviews, Vol. 9 No. 1, pp. 31-51.
[24] Wang, C, Rowe, M & Cripps, H 2006, ‘Collaborative commerce for SMEs: Field data
[25] relating to c-commerce adoption - A report to industry partners as part of the research
[26] project 'Collaborative commerce for SMEs in regional knowledge networks’’, Edith
[27] Cowan University, Perth, WA
[28] Wang, C., Walker, E. and Redmond, J. (2007), "Explaining the lack of strategic planning in SMEs: the importance of owner motivation".
[29] Wennekers, S. and Thurik, R. (1999), "Linking entrepreneurship and economic growth", Small Business Economics, Vol. 13 No. 1, pp. 27-56.
[30] Yi, S.H. (2012), "A study on technological management strategy in SMEs", Journal of Management and Strategy, Vol. 3 No. 4, p. 24.
[31] Zomorrodian, A. (2011), "New approach to strategic planning: the impact of leadership and culture on plan implantation via the three cs: cooperation, collaboration and coordination".

Keywords:

Performance, SME, Strategic Planning, Market Dynamism.