Implication of the Study on Policy, Theory and Practice
This study not only contributes more empirical data to existing research on the role of strategic planning and performance of SMEs, but also more importantly gives remarkable guidance in terms of strategic planning activities to the owners and managers of SMEs. Secondly, based on the strategy making modes, managers can learn to involve employees in the strategic planning process, analyse internal and external environments with the aim of identifying and strengthening key capabilities and investing in information technology to facilitate generation of information for decision making. Thirdly, development of long- and short-term budgets and targets facilitates implementation and control, and acts as a performance management tool. Fourthly, investment in high skilled employees with high levels of education improves firm productivity and long-term performance and sustainability.
Lastly, the result on firm characteristics adds to the ongoing debate on the classification of SMEs. This has implications on policy aspects as appropriate classification of SMEs may require different policy prescriptions. As illustrated above, the study achieved the set objectives by providing answers to the set objectives and assessing the hypotheses. In so doing, it has addressed the concerns of scholars, policy makers and practicing managers, and helped close some of the apparent information gaps and, hence, made its contribution to the field of strategic management.