Macro-environmental scanning practices of small and medium manufacturing enterprises: Evidence from emerging markets

Abstract

Most research on strategic management concentrates on strategy formulation and implementation. Little research considers environmental scanning (ES) and how small, and medium manufacturing enterprises (SMMEs) scan their environments in preparation for strategy formulation and implementation (Nandonde, 2019). This study investigates the environmental scanning behaviour of SMME owners/managers in a volatile environment, Zimbabwe in particular. The study employed a qualitative methodology to accomplish its objectives. The recorded in-depth interviews were transcribed and analysed using ATLAS.ti. The findings reveal that SMMEs in Zimbabwe emphasise scanning the political and economic environments as they are the most unstable. The results also illustrate that environmental scanning is a continuous, informal, and less structured activity, often using cheap, personal, and highly informal sources of information. Therefore, the paper concludes that contrary to the demands of strategic management literature, the informal and sequential environmental scanning behaviours of SMMEs support the growth and development of the sector. The study explored environmental scanning in a single country, Zimbabwe; therefore, generalisability is limited. The study results must be interpreted in light of this limitation.