The Role of Strategic Evaluation and Control in SME Performance: Lessons from Empirical Evidence in Kabwe District

Ndila L Yanda; Austin  Mwange; John  Moose; Clement  Mwaanga

doi:10.59413/ajocs/v6.i.1.9

Authors

Ndila L Yanda The University of Zambia, Institute of Distance Education, Lusaka, Zambia Author
Austin Mwange The University of Zambia, Graduate School of Business, Lusaka, Zambia Author https://orcid.org/0000-0001-8568-3063
John Moose The University of Zambia, Institute of Distance Education, Lusaka, Zambia Author
Clement Mwaanga Mulungushi University, School of Business, Kabwe, Zambia Author https://orcid.org/0000-0001-8198-3691

DOI:

https://doi.org/10.59413/ajocs/v6.i.1.9

Keywords:

Strategic evaluation and control, SMEs, performance, Resource-Based Theory, Dynamic Capabilities Theory, Kabwe District

Abstract

This study investigates the role of strategic evaluation and control (SEC) in the performance of small and medium enterprises (SMEs) in Kabwe District, Zambia. Based on the Resource-Based Theory (RBT) and Dynamic Capabilities Theory (DCT), the research explores how SMEs assess and adjust their strategies over time to align with internal and external environmental changes. A mixed-methods approach was employed, collecting quantitative data from 202 SME owners and managers through structured questionnaires and qualitative data via semi-structured interviews. The findings reveal that strategic evaluation and control positively affect SME performance, particularly in terms of sales, profits, and customer satisfaction. However, qualitative findings indicate inconsistencies and a lack of structured frameworks in implementing evaluation and control processes. The study recommends enhanced training, collaboration, and access to financial resources to improve the strategy evaluation and control mechanisms within SMEs in Kabwe District.

Downloads

Download data is not yet available.

References

Addae-Korankye, A., and Aryee, A, B. (2021). The relationship between strategic management practices and the growth of Small and Medium Enterprises (SMEs) in Ghana, Business: Theory and Practice, ISSN 1822-4202, University, Vilnius, Vol. 22, Iss. 1, pp. 222-230, DOI: https://doi.org/10.3846/btp.2021.12549

Adudu, A, A.,Emmanuel, , L., Mauton, S. (2022). Strategy Evaluation on Performance of Small and Medium Enterprises (SMES) In Makurdi Metropolis, Benue State. Journal of Arts, Humanities and Development Studies (SGOJAHDS), Vol.5 No.3 September, 2022; p.g. 1 – 13; ISSN: 2695-2319 (Print); ISSN: 2695-2327 (Online).

Ahmed, A. S., & Mukhongo, A. (2017). Role of strategic management practices in organizational performance of customs department in Mogadishu, Somalia. Imperial Journal of Interdisciplinary Research (IJIR), 3(9), 1201-1211.

Al-Helali, A. H. M., Mahmmoud, W. A., & Ali, H. A. (2012). Transnational Journal of Science and Technology, 2(10), 17−29.

Ali, M., & Qun, W. (2019). Strategic management practices and performance of SMEs in Bangladesh. International Journal of Advanced Research, 7(1), 69−78.

Aliyu, S., Adekunle, M,K., and Abbah, O, D. (2022). Effect of Strategic Management on the Performance of Small and Medium Enterprises in FCT-Abuja. Direct Research Journal of Management and Strategic Studies. ISSN: 2787-009X

Banda, M., and Mwange, A. (2023). Corporate Governance: A Theoretical Review. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online), Vol.15, No.16, 2023.

Bondy, K, M. (2020). The Art and Science of Transition: A Descriptive Case Study between a Two- and a Four-Year Institution. Ph.D thesis. Grand Forks, North Dakota: University of North Dako.

Boyd, R., & Casper, N. (2021). Introductory Statistics 4th Edition (revised). California: College of Lake County Faculty.

Bredfeldt, C,E., Awad, E, M., and Joseph, K, S. (2014). Business Process Reengineering in Healthcare Management: A Critical Review. Int. J.

Creswell, J. 2014b. A Concise Introduction to Mixed Methods Research. Available at https://books.google.co.zm/books?isbn=1483359050/.

Creswell, J.W. 2014a. Research design: Qualitative, quantitative and mixed methods approaches. London: Sage.

Dawadi, S., Shrestha, S., & Giri, R. A. (2021). Mixed-Methods Research: A Discussion on its Types, Challenges, and Criticisms. Journal of Practical Studies in Education, 2(2), 25-36 DOI: https://doi.org/10.46809/jpse.v2i2.20

Dubihlela, J., & Sandada, M. (2014). Impact of strategic planning on small and medium-sized Enterprises (SMEs) Performance: The role of employee participation, implementation incentives and evaluation and control. Journal of Economics, 5(1), 45-55. DOI: https://doi.org/10.1080/09765239.2014.11884983

Dudovskiy, J. (2018). The Ultimate Guide to Writing a Dissertation in Business Studies: A Step-by-Step Assistance. An e-book. Available.

Elshamly, A. B. (2013). Developing a strategic framework in small and medium sized enterprises (SMEs). A PhD thesis submitted to the University of Gloucestershire.

Hair, J., Black, B., Babin, B.and Anderson, R. (2010). Multivariate data analysis.7 th ed. Upper saddle River. NJ, USA. Pearson Pretence Hall.

Hair, J., Tatham, R., Anderson, R., & Black, W. (2006). Multivariate data analysis. Englewood: Prentice Hall International, 1-758.

Hieu, V, M., and Nwachukwu, C. (2019). Strategy Evaluation Process And Strategic Performance Nexus. Tsenov Academy of Economics, Svishtov Bulgaria, p.43-50.

Hillman, A. J., Withers, M. C., & Collins, B. J. (2009). Resource dependence theory: A review. Journal of management, 35(6), 1404-1427. DOI: https://doi.org/10.1177/0149206309343469

Hu, L.-t., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modelling: A Multidisciplinary Journal, 6, 1-55. DOI: https://doi.org/10.1080/10705519909540118

Hunger, J. D., & Wheelen, T. L. (2011). Essentials of Strategic Management. Saint Petersburg, Florida: Prentice Hal

Johansen, J., & Olsen, M. (2020). The Impact of Strategy Evaluation and Control on the Performance of SMEs in Norway: A Survey-Based Study. European Journal of Small Business.

Kaponda, P., Kawimbe, S., Meki-Kombe, C., and Mwange, A. (2023). Models and methodologies for improving and redesigning business processes: A theoretical review. International Journal of Multidisciplinary Research and Growth Evaluation, Pages, 651-660. www.allmultidisciplinaryjournal.com. DOI: https://doi.org/10.54660/.IJMRGE.2023.4.5.651-660

Kenny, D. A. (2020). Measuring Model Fit. http://www.davidakenny.net/cm/fit.htm

Lawal, F. M., Omone, O. E., & Oludayo, O. (2012). Effect of strategic issue in management on organisational performance.

Maroa, J. G., & Muturi, W. (2015). Influence of strategic management practices on performance of floriculture firms in Kenya. A survey of Kiambu County Kenya. International Journal of Economics, Commerce and Management, 3(7), 497-513.

Ministry of Commerce Trade and Industry. (2020). The impact of COVID-19 on SMEs in Zambia. The business Survey report, August 2020.

Mohammad A, Wang Q (2019). Strategic management practices and performance of SMEs in Bangladesh. International journal of Advanced Research 7(1):69-78. DOI: https://doi.org/10.21474/IJAR01/8298

Monday, J., Akinola, G. O., Ologbenla, P., & Aladeraji, O. K. (2015). Strategic management and firm performance: A study of selected manufacturing companies in Nigeria. European Journal of Business and management, 7(2), 161-171.

Mukosa, F., Mweemba, B., Mwitumwa, L., Mbewe, S. B., Sikazwe, W., & Sinkala, N. K. (2020). The impact of COVID-19 on small-medium enterprises in Zambia. Banking and Insurance academic journal, 2,6. http://41.63.8.17:80/jspui/handle/123456789/92

Muogbo, U. S. (2013). The impact of strategic management on organisational growth and development: A study of selected manufacturing firms in Anambra State. Journal of Business and Management, 7(1), 24-33. DOI: https://doi.org/10.9790/487X-0712432

Muriithi, S. (2017). African Small and Medium Enterprises (SMEs) contributions, challenges, and solutions. European Journal of Research and Reflection in Management Science, 5(1), 36−47.

Murphy, K.R., Myors, B. & Wolach, A. (2014). Statistical power analysis: A simple and general model for traditional and modern hypothesis tests (4th Ed.). New York: Routledge.

Mutambo, N., Mwange, A., Manda, R., Chiseyeng’i, J., Mashiri, G., & Bwalya, J. (2022). Principles and Practices of Strategy for Effective and Efficient Performance of Business Organisations.

Mutemi, B., Maina, R., & Wanyoike, N. (2013). Strategic Management Practices and Performance of Small Scale Enterprises in Kitui Town in Kenya. International Journal of Science, Commerce and Humanities, 2(4), 249–259.

Muzata, K, K. (2017). Curriculum Implementation for Learners With Special Education Needs: The Case Of Selected Inclusive And Special Schools In Zambia. Ph.D Thesis. City of Tshwane: University of South Africa.

Mwaanga, C. (2022). Environmental Factors and the Formation of Students’ Entrepreneurial Intentions: Perspectives from Zambia. Ph.D thesis. City of Tshwane: University of South Africa.

Mwaanga, C., Mulenga,J., Lubinda, M., Siame,M., Kaliba-Chishimba, K., Mulenga, M, C., & Kafula, C, S. (2021). COVID-19 Pandemic and Its Implications on Small and Medium Enterprises (SMEs) Operations in Zambia. Journal of Business Administration Research Vol. 10, No. 1; 2021. http://jbar.sciedupress.com DOI: https://doi.org/10.5430/jbar.v10n1p32

Mwange, A., Kasongola, P., & Meyiwa, A. (2022). An Assessment of the Effect of Mobile Money Services on the Profitability of the Banking Sector in Zambia. Economics and Business Quarterly Reviews, 5(3). DOI: https://doi.org/10.31014/aior.1992.05.03.443

Mwansa, B., Mwange, A., Matoka, W., Chiseyeng, J., Chibawe, O., Manda, R., Mashiri, G., Nawa, R., Mutambo, N., (2022).Theoretical Review: An Explanation of Data Types, Statistical Tests, and Factors That Influence Presentation of Findings. Research on Humanities and Social Sciences www.iiste.org, Vol.12, No.22, 2022, ISSN 2224-5766 (Paper) ISSN 2225-0484 (Online).

Mwewa, K. (2018). A Study To Find Out The Factors Affecting The Economic Growth Of SMEs In Retail Sector (Case Study Of Mbala District). The International Journal of Multi-Disciplinary Research, 1(1), 1-40.

Mwiinga, B., Sikazwe, W., Kangwa, V.Z., Katebe, M., & Matafwali, M. (2020). Operational strategies of small and medium enterprises in Lusaka-post COVID-19. American research journal of human and social sciences,3, 7. http://41.63.8.17:80/jspui/handle/123456789/85

Mwika, D., Banda, A., Chembe, C., & Kunda, D. (2018). The impact of globalization on SMEs in emerging economies: A case study of Zambia. International Journal of Business and Social Science, 9(3), 59-68.

Okwemba, J, A., & Njuguna, N. (2021). Effect of Strategy Evaluation on Performance of Chemelil Sugar Company in Kisumu County, Kenya. African Journal of Emerging Issues.

Olsen, J., & Berg, A. (2022). The Impact of Strategy Evaluation and Control on the Performance of SMEs in Norway. Journal of Small Business Management.

Onwe, B. U. (2014). Effect of strategic planning on the profitability of small and medium enterprises in Nigeria. Prime Journal of Business Administration and Management, 4(9), 1602-1609.

Popa, I., Dobrin, C., & Popescu, D. (2012). Model for Strategic Performance Control and Evaluation of the Company. Management research and Practice, 4(1), 45-50.

Rosner, B. (2016). Fundamentals of Biostatistics 8th Edition. Boston

Ruzindana A. & Irechukwu E., N. (2023). Strategic Management Practices and Sustainability of Small and Medium Sized Enterprises in Processing and Manufacturing Sector in Rwanda: A Case of 7 Selected Small and Medium Sized Enterprises in Rwanda. Journal of Entrepreneurship & Project Management. Vol 7(13) pp. 61-80 DOI: https://doi.org/10.53819/81018102t2249

Samsudin, Z. B., & Ismail, M. D. (2019). The Concept of Theory of Dynamic Capabilities in Changing Environment. International Journal of Academic Research in Business and Social Sciences, 9(6), 1071–1078. DOI: https://doi.org/10.6007/IJARBSS/v9-i6/6068

Santos, J. B., & Brito, L. A. (2012). Toward a subjective measurement model for firm performance. Brazilian Administrative Review, 9(6), 95- 117. DOI: https://doi.org/10.1590/S1807-76922012000500007

Saunders, M., Lewis, P., & Thornhill, A. (2016). Research Methods for Business Students 7th Edition. Pearson Professional Limited.

Saunders, M.N.K., Lewis, P. and Thornhill, A. (2019) Research methods for business students. 8th edn. Harlow: Pearson.

Tashakkori, A. & Teddlie, C. (2019). Mixed methods research. Sage Publications.

Teece, D. J. (2016). Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm. European Economic Review, 86, 202-216. DOI: https://doi.org/10.1016/j.euroecorev.2015.11.006

Teece, D. J. (2018). Dynamic capabilities as (workable) management systems theory. Journal of Management & Organization, 24(3), 359-368. DOI: https://doi.org/10.1017/jmo.2017.75

Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California management review, 58(4), 13-35. DOI: https://doi.org/10.1525/cmr.2016.58.4.13

Tunji, S. T. (2013). Effective internal controls system as antidote for distress in the banking industry in Nigeria. Journal of Economics and International Business Research, 1(5), 106-121.

Wanjiru, N. S. (2016). The influence of strategic management practices on corporate performance of Sarova Town hotels. Unpublished MBA thesis, University of Nairobi, Kenya.

Williams, R. I., Smith, A., Aaron, J. R., Manley, S. C., & McDowell, W. C. (2019). Small business strategic management practices and performance: A configurational approach. Economic Research-Ekonomska Istrazivanja, 1(1), 1–19. DOI: https://doi.org/10.1080/1331677X.2019.1677488