The effect of top management's strategic thinking capacity of performance of yemeni small and medium enterprises
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Date
2017
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Universiti Teknologi Malaysia
Abstract
To survive and achieve sustainable performance, companies must carefully and continuously plan their strategy innovatively. This research developed an integrated strategic thinking model and tested it empirically in an uncertain environment in a least developed country, specifically among small and medium Yemeni manufacturing enterprises. This study examined the impact of strategic thinking skills, strategic planning, incremental planning, and lower-level managers’ participation in the planning process, on the performance of small and medium enterprises (SMEs). A correlational test was conducted to measure the relationship of strategic thinking capacity and its factors on manufacturing SMEs’ performance in Yemen. Questionnaires were personally administered to a sample of 300 manufacturing SMEs based in four Yemeni governorates. 173 out of 213 returned questionnaires were appropriate and used in the analysis. Partial Least Squares- Structural Equation Modelling (PLS-SEM) techniques were used to test the interrelationships in the model. The results revealed that there was a significant direct relationship between strategic thinking capacity and its factors, and the manufacturing SMEs’ performance. However, the study found no significant relationship between strategic planning and SMEs’ performance. There were significant moderating effects of environmental uncertainty on the relationship between incremental planning and SMEs’ performance, and a direct significant negative effect of environmental uncertainty on the SMEs’ performance. The findings support most of the main hypotheses proposed in the preliminary research model. Besides, this study contributes to theory, methodology and practice as it incorporates strategic thinking skills, incremental planning, and lower-level managers’ participation in planning in the strategic thinking capacity model of manufacturing SMEs in Yemen
Description
Thesis (Ph.D (Management))
Keywords
Management