- Title
- The influence of strategic leadership on the performance of small and medium-sized enterprises as mediated by strategy implementation
- Creator
- January, Nceba
- ThesisAdvisor
- Amos, T.L.
- Subject
- Uncatalogued
- Date
- 2024-04-03
- Type
- Academic theses
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10962/434723
- Identifier
- vital:73099
- Description
- Small and medium-sized enterprises (SMEs) are viewed as the cornerstone of socio-economic development in many economies globally. The progressive contribution of SMEs to the global economy is irrefutable and enshrined in poverty alleviation, inclusive economic growth, and job creation strategies pursued by many economies worldwide. SMEs are primarily the form of enterprise that accounts for over 90% of all businesses; thus, Small and Medium-sized Enterprises are the main source of employment. SMEs' contribution to value creation is estimated to be above 50% on average. In emerging countries, particularly South Africa, SMEs contribute approximately 45% of the total employment and 33% of the Gross Domestic Product (GDP). In most countries, Small and Medium-sized Enterprises contribute to more than 50% of employment and GDP, and these figures become significantly higher when the informal small business sector is included. World Bank estimated 600 million jobs needed by 2030, making SME development a high priority for many governments worldwide. Despite globally acknowledged SME contributions, small businesses are still faced with many challenges that have ramifications on their survival, growth, and performance. Studies highlighted challenges such as lack of access to finance and funding modalities, appropriate technology and infrastructure, markets and social networks, and lack of research and development, strategic management skills, and inability to perform managerial tasks, among others. Recent studies have been conducted on many of these challenges; however, there is little known about the strategic management challenges that face SMEs and their business performance. Several studies were conducted on some of these strategic management challenges, such as strategic planning, strategic orientation, strategic agility, organisational flexibility, and total quality management. However, a review of studies relevant to SMEs and their performance is silent on the argument regarding the influence of strategic leadership on the performance of SMEs, especially when key drivers of effective strategy implementation mediate strategic leadership. Thus, this study investigated the influence of strategic leadership on the performance of SMEs as mediated by strategy implementation in Nelson Mandela Bay (NMB). A detailed theoretical investigation was conducted on the nature and role of strategic leadership, strategy implementation, and business performance of SMEs. Strategic leadership represents the independent variables of this study, namely: strategic direction, balanced organisational controls, organisational culture, organisation’s resource portfolio, and ethical practice, followed by the mediating variable (strategy implementation) and the dependent variable (business performance). An empirical investigation was also conducted to test the significant influence between these variables. This study adopted a positivistic approach using a quantitative research method. The sample size of the study was 390 respondents. Self-developed and structured questionnaires were physically distributed to 315 SME owners and managers in NMB using a convenience sampling method. Only 229 returned questionnaires were suitable and relevant to this study; thus, a 72.69% response rate was achieved. Returned questionnaires were cleansed, coded, and transferred to a statistical data analysis software called Statistica, version 14.0, for quantitative data analyses. The validity and reliability of the measuring instrument were confirmed using Exploratory Factor Analysis and the calculation of Cronbach’s alpha coefficients. Descriptive statistics was calculated to summarise the empirical data on demographic variables and the main variables of this study. Pearson’s correlations were calculated to determine the correlations between the main variables of this study, and the results confirmed that there is a positive influence between strategic leadership, strategy implementation, and business performance of SMEs. A multiple linear regression analysis was conducted to test the significance of the influence between the main variables of the study. A regression analysis outcome revealed that some of the strategic leadership activities (strategic direction, balanced organisational controls, and organisational culture) have a statistically significant positive influence on the business performance of SMEs. Furthermore, a statistically significant positive influence does exist between strategy implementation and business performance of SMEs. This study’s recommendations were suggested to SME owners/managers. Firstly, to formulate and develop a clear long-term vision of the business for the next 3 to 5 years. Align resources to key areas of business operation and set internal controls that will help set standards of desired performance and ultimately achieve them. Secondly, to formulate and implement shared values that connect employees to the business purpose and the way it is conducted. These shared values must be underpinned by a unique, valuable, and incomparable culture against competitors to gain a competitive edge. Furthermore, consider using rewards to recognise employees who embody the shared values of the business and are committed to the success of the business because of its culture. Thirdly, ensure both strategic and financial controls support strategy implementation and guide employees to achieve performance objectives. Use balanced scorecards to assess the effectiveness of controls in the business and put corrective measures to address performance gaps. Last but not least, invest in staff development and training, technological infrastructure, and set sound processes and systems for the business operation, establish structures that have clear lines of reporting, authority, and delegation.
- Description
- Thesis (MCom) -- Faculty of Commerce, Management, 2024
- Format
- computer, online resource, application/pdf, 1 online resource (179 pages), pdf
- Publisher
- Rhodes University, Faculty of Commerce, Management
- Language
- English
- Rights
- January, Nceba
- Rights
- Use of this resource is governed by the terms and conditions of the Creative Commons "Attribution-NonCommercial-ShareAlike" License (http://creativecommons.org/licenses/by-nc-sa/2.0/)
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