This work is licensed under a Creative Commons Attribution 4.0 International License.
Why Small and Medium Enterprises are left choiceless in adopting Strategic Management ethological (ethos) practices in Africa! A comprehensive study of selected small businesses across Africa
Corresponding Author(s) : Milton Gwakwa
American Journal of Economics and Business Management,
Vol. 3 No. 3 (2020): AJEBM
Abstract
In highly competitive business environment and unstable economic situations, small businesses in the SMEs sector fold up due to a series of management challenges based emanating both from the internal and external structures of the environment. The life of small businesses in Africa is highly volatile and unpredictable given the level of competition posed by the global business environment. The future is always uncertain and much needed to be done in terms of how to deal with that future today. This paper provides a pedestal and an ontological perspective within which Small businesses self-manage their operations from strategic–orientation perspectives. Significantly, small businesses in Africa are the engines that drive economic development and contribute significantly to the Gross Domestic Products (GDP) of most countries. A resurgent of entrepreneurs starting up companies and the need to place them in their rightful position is undisputable despite continued stereotyping and misconceptions on their contribution. The paper argues that the sustainable survival of small businesses in the SMEs sector will entirely depend among other critical factors, embracing strategic management culture. Strategic management practice is an area worthy of research considering the huge importance of small businesses to nations ‘economic recovery, growth, competitiveness and performance. The paper explores many of the strategic orientations critical to the success of small businesses in Africa. To obtain critical data required to make informed recommendations, the present study reviews existing literature on strategic management adoption and also made use of six empirical studies across the SMEs sector in selected parts of Africa. Sixteen businesses were sampled and studied to understand the strategic model and practice using face-to-face interviews. In addition to literature review, the choice of phenomenology adopted for the empirical study was appropriate for this study in order to understand the lived experiences of the sixteen participants selected to give first hand experiences on strategic management, which in turn supported the theoretical understanding obtained from the secondary data. The study suggests further research on best practices in formalizing strategic management in Africa.
Key words: Small Business, Strategy, Strategic Management, ethological practices, Sustainable Growth, Small and Medium Enterprise
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Ama, Njoku Ola, and Francis Nathan Okurut. (2018). “Micro, Small, and Medium-Sized Enterprises (MSMEs) and Open Collaborative Innovation in Botswana.” In Working Paper 15. openAIR African Innovation Research. http://www.openair.org. za/wp-content/uploads/2018/08/WP-15-MSMEs-and-OpenCollaborative-Innovation-in-Botswana.pdf
- 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.
- Aragón-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.
- 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.
- Baker W.H.H.L.Addams and B.Davis (2003).Business planning in successful small firms.Long Ragne Planning 26(6):82-8d
- Baker, G., & Leidecker, J. (2001). Does it pay to plan? Strategic planning and financial performance. Agribusiness, 17, 355-364
- Bamberger, I. (1994), “Developing Competitive Advantage in Small and Medium-sized Firms”, in: Bamberger, I. (Ed.), Product/Market Strategies of Small and Medium-sized Enterprises, Aldershot: Avebury.
- 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.
- Chaganti, R. (1987). Small business strategies in different industry growth environments Journal of Small Business Management 25 (3), 61-68
- Freeman, J.P. and Wilmes, D.M. (2009), “Facilitating change through integrated strategic planning”, Planning and Changing, Vol. 40 Nos 3/4, p. 224.
- French, S.J., Kelly, S.J. and Harrison, J.L., 2004. "The role of strategic planning in the performance of small, professional service firms a research note", Journal of Management Development, 23 (9), pp. 765-776.
- Gibus, P. And Kemp, R.G, M. (2005). Strategy and small business performance”, Scientific Analysis of Entrepreneurship and SMEs,
- Greenbank P(2001). ‖Objective setting in the micro-business‖ International Journal of Entrepreneurial Behaviour and Research, Emerald (MCB),Vol:7 Issue: 3 pages 108-127
- Hitt R.E Freeman & J.S. Hornsby (2005) Improving firm performance through strategy: The Academy of Management Executive M.A
- Jorosi, B.N. (2008). Environmental scanning in Botswana’s SMEs: a study of the manufacturing industry, in Libri, 58: 224-233.
- Julian, O. (2013), “Relationship between strategic planning and organization’s performance”, Non-Governmental Organizations (NGOS): a Case of Actionaid, Kenya, Unpublished MBA Project School of Business, University of Nairobi, Nairobi.
- Lobontiu, M. and G. Lobontiu (2001), Management strategic in intreprinderile micro si mici (Strategic Management in micro- and small enterprises), in: Conferinta Jubiliara de Comunicari Stiintifice "Mirabila Samanta", Alba Iulia: Academia Informatizata pentru Stiinte Tehnice, Economice, de Drept si Administratie “Ion I. C. Bratianu”, Centrul Universitar Alba Iulia, 26-27 octombrie.
- M.E.Porter (2005)Toeards a dynamic theory of strategy: Strategic Management Journal:
- Miller, C. C., and L. B. Cardinal. (2001) Strategic planning and firm performance Management Review 43 (Winter): 139-60
- Mintzberg, H. (1987), ‘The strategy concept I: Five Ps for strategy’ California Management Review 30(1), 11–24
- Perry, S.C. (2001). "The relationship between written business plans and failure of small business in the US. “Journal of Small Business Management 39 (3): 201-208
- Porter ME(1987). ―The state of strategic thinking.‖ The Economist,
- Simpson, D.G. (1998a). "Why most strategic planning is a waste of time and what you can do about it – part 1.” Long Range Planning 31 (3): 476 b-480
- Small, Medium and Large Enterprises Database (2007), Sector Mapping And Validation In Botswana: “Findings And Strategies” For Local Enterprise Authority In The Rebublic Of Botswana 2007.
- Steiner, G.A. (2010), Strategic Planning, Simon and Schuster.
- Storey DJ. (1994) Understanding the Small Business Sector. Routledge: London
- White, J. 1998 Small and medium enterprise strategy a small business necessity, not a large firm luxury. Long Range Planning 31 (6) : 813 - 14.
References
Ama, Njoku Ola, and Francis Nathan Okurut. (2018). “Micro, Small, and Medium-Sized Enterprises (MSMEs) and Open Collaborative Innovation in Botswana.” In Working Paper 15. openAIR African Innovation Research. http://www.openair.org. za/wp-content/uploads/2018/08/WP-15-MSMEs-and-OpenCollaborative-Innovation-in-Botswana.pdf
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.
Aragón-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.
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.
Baker W.H.H.L.Addams and B.Davis (2003).Business planning in successful small firms.Long Ragne Planning 26(6):82-8d
Baker, G., & Leidecker, J. (2001). Does it pay to plan? Strategic planning and financial performance. Agribusiness, 17, 355-364
Bamberger, I. (1994), “Developing Competitive Advantage in Small and Medium-sized Firms”, in: Bamberger, I. (Ed.), Product/Market Strategies of Small and Medium-sized Enterprises, Aldershot: Avebury.
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.
Chaganti, R. (1987). Small business strategies in different industry growth environments Journal of Small Business Management 25 (3), 61-68
Freeman, J.P. and Wilmes, D.M. (2009), “Facilitating change through integrated strategic planning”, Planning and Changing, Vol. 40 Nos 3/4, p. 224.
French, S.J., Kelly, S.J. and Harrison, J.L., 2004. "The role of strategic planning in the performance of small, professional service firms a research note", Journal of Management Development, 23 (9), pp. 765-776.
Gibus, P. And Kemp, R.G, M. (2005). Strategy and small business performance”, Scientific Analysis of Entrepreneurship and SMEs,
Greenbank P(2001). ‖Objective setting in the micro-business‖ International Journal of Entrepreneurial Behaviour and Research, Emerald (MCB),Vol:7 Issue: 3 pages 108-127
Hitt R.E Freeman & J.S. Hornsby (2005) Improving firm performance through strategy: The Academy of Management Executive M.A
Jorosi, B.N. (2008). Environmental scanning in Botswana’s SMEs: a study of the manufacturing industry, in Libri, 58: 224-233.
Julian, O. (2013), “Relationship between strategic planning and organization’s performance”, Non-Governmental Organizations (NGOS): a Case of Actionaid, Kenya, Unpublished MBA Project School of Business, University of Nairobi, Nairobi.
Lobontiu, M. and G. Lobontiu (2001), Management strategic in intreprinderile micro si mici (Strategic Management in micro- and small enterprises), in: Conferinta Jubiliara de Comunicari Stiintifice "Mirabila Samanta", Alba Iulia: Academia Informatizata pentru Stiinte Tehnice, Economice, de Drept si Administratie “Ion I. C. Bratianu”, Centrul Universitar Alba Iulia, 26-27 octombrie.
M.E.Porter (2005)Toeards a dynamic theory of strategy: Strategic Management Journal:
Miller, C. C., and L. B. Cardinal. (2001) Strategic planning and firm performance Management Review 43 (Winter): 139-60
Mintzberg, H. (1987), ‘The strategy concept I: Five Ps for strategy’ California Management Review 30(1), 11–24
Perry, S.C. (2001). "The relationship between written business plans and failure of small business in the US. “Journal of Small Business Management 39 (3): 201-208
Porter ME(1987). ―The state of strategic thinking.‖ The Economist,
Simpson, D.G. (1998a). "Why most strategic planning is a waste of time and what you can do about it – part 1.” Long Range Planning 31 (3): 476 b-480
Small, Medium and Large Enterprises Database (2007), Sector Mapping And Validation In Botswana: “Findings And Strategies” For Local Enterprise Authority In The Rebublic Of Botswana 2007.
Steiner, G.A. (2010), Strategic Planning, Simon and Schuster.
Storey DJ. (1994) Understanding the Small Business Sector. Routledge: London
White, J. 1998 Small and medium enterprise strategy a small business necessity, not a large firm luxury. Long Range Planning 31 (6) : 813 - 14.