Journal of Strategic Human Resource Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Empirical Study on Strategy Management and Financial Performance: Indian Food SMEs


Affiliations
1 Amity Business School, Amity University Uttar Pradesh, India
2 Department of Entrepreneurship, Amity Business School, Amity University Uttar Pradesh, India
     

   Subscribe/Renew Journal


Rationale: Every business organization strives for superior performance, improved competitive edge and better return; the implementation of strategy management concept is one of the most important process to pave the way for survival, development, and growth. The government of India has given much attention to Small and Medium Enterprises (SME) under “Make in India” initiative but strategy management is one of the core ingredients for sustainability and better financial performance.

Objective: The primary objective of the study is to investigate the impact of strategy management on financial performance in Indian food SMEs. The secondary objective is to study the difference in practices of strategy management and financial performance with type of food SMEs-manufacturing verses service.

Methodology: Descriptive research design has been used. Data were collected from 262 entrepreneurs of food SMEs across the National Capital Region of India using well designed pretested questionnaire. Data were analyzed using appropriate tools of SPSS 21 and Amos 21.

Finding: The results of study revealed that there is significant positive impact of strategy management on financial performance of food SMEs. There is no significant difference in practices of strategy management and financial performance with type of food SMEs. Implications: The present study recommends the owner or manager of food SMEs to pay more attention to understand the present business scenario through strategy; and to make safe strides towards sustainability of the organization and to encounter the challenges for better financial performance.


Keywords

Strategy Management, Financial Performance, Food SMEs.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Amurle, G., Gakure, R., & Waititu, A. (2013). Does strategic planning influence the performance of ICT SMEs in Kenya? Prime Journal of Social Science (PJSS), 2(6), 350–359. Retrieved from www.primejournal.org/PJSS.

  • Anderson. J., & Gerbing, D. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.

  • Arasa, R., & K’Obonyo, P. (2012). The relationship between strategic planning and firm performance. International Journal of Humanities and Social Science, 2(22), 201–213.

  • Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychological Bulletin, 107(2), 238–246.

  • Byrne, B. M. (2010). Structural equation modeling with AMOS: Basic concepts, applications, and programming (2nd ed.). New York, NY: Routledge, Taylor & Francis Group.

  • Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrica, 16(3), 297–334.

  • Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis. Upper Saddle River, NJ: Pearson.

  • Hatif, M. A., & Sadik, H. (2012). Strategic management accounting techniques I Romanian companies: An empirical study. Studies in Business and Economics, 7(2), 126–140.

  • Husnah, S. B., Aisjah, S., & Djumahir (2013). Intangible asset, competitive strategy and financial performance: Study on Rattan SMEs in Palu City of Central Sulawesi (Indonesia). IOSR Journal of Business and Management, 7(4), 14–27.

  • Huynh, T., Gong, G., & Tran, P. (2013). Integrating ABC with standard costs – A strategic management tool. Australian Journal of Basic and Applied Sciences, 7(6), 556–562.

  • Joreskog, K. G., & Sorbom, D. (1993). L1SREL 8: User’s reference guide. Chicago, IL: Scientific Software International.

  • Kline, P. (1998). The new psychometrics: Science, psychology and measurement. London: Routledge Publishing.

  • Luen, W. K., Yong, K. T., & Fook, O. S. (2013). Strategic planning and business performance: A study of SMEs in Malaysia. Proceedings of 3rd Asia-Pacific Business Research Conference, 25–26 February 2013. Kuala Lumpur, Malaysia.

  • Mackie, B. (2008). Organizational performance management in a government context: A literature review. Scottish Government Social Research. Public Services and Government. Retrieved from www.scotland.gov.uk/socialresearch.

  • Olanipekun, W. D., Abioro, M. A., Akanni, L. F., Arulogun, O. O., & Rabiu, R. O. (2015). Impact of strategic management on competitive advantage and organisational performance: Evidence from Nigerian bottling company. Journal of Policy and Development Studies, 9(2).

  • Owolabi, A. S., & Makinde, G. O. (2012). The effect of strategic planning on corporate performance in university education: A study of Babcock university. Kuwait Chapter of Arabian Journal of Business and Management Review, 2(4), 27–44.

  • Pathak, P. K. (2009). Successful models of public administration and management. The Nepalese Journal of Public Financial Management (PEFA), 1–12. Retrieved from www.pefa.gov.np.

  • Pirtea, M., Nicolescu, C., & Botoc, C. (2009). The role of strategic planning in modern organization. Annales Universitatis Apulensis Series Oeconomica, 11(2), 953–957.

  • Price, S. L. (2006). Performance management strategies: A competitive advantage for high technology firms. A study in the Okanagan Valley region of British Columbia, Canada. Unpublished Dissertation. Faculty of Business, University of Southern Queensland.

  • Rhee, M., & Mehra, S. (2013). Aligning operations, marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry. The International Journal of Management Science, Omega, 34(5), 505–515.

  • Ridwan, M. S., & Marti, J. (2012). The study on strategic planning and organizational performance in the regional government owned banks in Indonesia. International Journal of Humanities and Applied Sciences (IJHAS), 1(3), 98–102.

  • Serra, F. R., & Ferreira, M. P. (2010). Emerging determinants of firm performance: A case study research examining the strategy pillars from a resource-based view management research. The Journal of the Iberoamerican Academy of Management, 8(1), 7–24.

  • UNDP. (2008). Assessment of development results: Evaluation of UNDP contributions. ECUADOR. Evaluation Office, United Nations Development Programme.


Abstract Views: 210

PDF Views: 0




  • Empirical Study on Strategy Management and Financial Performance: Indian Food SMEs

Abstract Views: 210  |  PDF Views: 0

Authors

Heena Chauhan
Amity Business School, Amity University Uttar Pradesh, India
Anjani Kumar Singh
Department of Entrepreneurship, Amity Business School, Amity University Uttar Pradesh, India

Abstract


Rationale: Every business organization strives for superior performance, improved competitive edge and better return; the implementation of strategy management concept is one of the most important process to pave the way for survival, development, and growth. The government of India has given much attention to Small and Medium Enterprises (SME) under “Make in India” initiative but strategy management is one of the core ingredients for sustainability and better financial performance.

Objective: The primary objective of the study is to investigate the impact of strategy management on financial performance in Indian food SMEs. The secondary objective is to study the difference in practices of strategy management and financial performance with type of food SMEs-manufacturing verses service.

Methodology: Descriptive research design has been used. Data were collected from 262 entrepreneurs of food SMEs across the National Capital Region of India using well designed pretested questionnaire. Data were analyzed using appropriate tools of SPSS 21 and Amos 21.

Finding: The results of study revealed that there is significant positive impact of strategy management on financial performance of food SMEs. There is no significant difference in practices of strategy management and financial performance with type of food SMEs. Implications: The present study recommends the owner or manager of food SMEs to pay more attention to understand the present business scenario through strategy; and to make safe strides towards sustainability of the organization and to encounter the challenges for better financial performance.


Keywords


Strategy Management, Financial Performance, Food SMEs.

References