A factorial analysis of strategic planning dimensions among small and medium enterprises and variations in terms of gender in a developing country

Abstract

The study sought to examine the strategic planning dimensions applicable among SMEs in South Africa. In addition, the study investigated whether strategic planning practices vary according to gender. A survey was conducted with 200 SMEs, which were identified though convenience sampling. The results indicated that a majority of SMEs practice strategic planning. A factor analysis procedure resulted in the extraction of eight factors, namely, environmental scanning, business mission and vision, formality of strategic plans, evaluation and control, informing sourcing, strategy implementation incentives, employee participation and time horizons. No significant differences were found between SME managers/owners, based on gender with regard to the eight strategic planning dimensions. The results therefore demonstrated that sexual orientation does not play a role in one's strategic planning practices. The results of the study could assist managers in understanding the strategic paths through which a business achieves a future desired position.