Strategic planning and medium sized enterprises performance : mediating effect of innovativeness in implementing strategies and moderating effect of environmental uncertainty in Aceh, Indonesia

• Main Author: Ida Sosiawani,
• Format: Thesis
• Language: English; English
• Published: 2017
• Subjects: HB615-715 Entrepreneurship. Risk and uncertainty. Property; HB Economic Theory
• Online Access: http://etd.uum.edu.my/7253/
• Institution: Universiti Utara Malaysia

The main objective of this study was to investigate the relationship between strategic planning and medium-sized enterprises‘ (MEs) performance in Aceh, Indonesia. This study also investigated the mediating effect of innovativeness in implementing strategies and the moderating effect of environmental uncertainty on the relationship between strategic planning and MEs‘ performance. The motivation for conducting this study was due to the inconsistent findings in the literature concerning the relationship between strategic planning and performance. This study was underpinned by the contingency theory and the system theory in order to explain the proposed conceptual framework. Questionnaires were randomly distributed to 127 owners or managers of MEs, and 91 questionnaires were used for the analysis. The Pearson correlation analysis was used to analyze the direct relationship between formality, tools of strategic planning, employee participation, time horizon and control, and MEs‘ performance. To examine the mediating effect of innovativeness in implementing strategies on the relationship between strategic planning and MEs‘ performance, hierarchical regression analysis, Medgraph, the Sobel test, and the Kock Mediation test were used. Meanwhile, hierarchical regression analysis was used in order to investigate the moderating effect of environmental uncertainty on the relationship between strategic planning and MEs‘ performance. The results of this study revealed that formality, tools of strategic planning, employee participation, time horizon and control have positive and significant relationships with MEs‘ performance. In addition, by incorporating all the mentioned dimensions of strategic planning, strategic planning itself has a positive and significant relationship with MEs performance. More importantly, the result of this study confirmed the mediating effect of innovativeness in implementing strategies on the relationship between strategic planning and MEs‘ performance. Furthermore, this study showed that environmental uncertainty did not moderate the relationship between strategic planning and MEs‘ performance. Finally, this study discussed the implications of the findings, limitations, and directions for future research.