Strategy formulation amongst small and medium manufacturing enterprises: An emerging market case study

Abstract

Strategy formulation has traditionally been associated with large corporates (Damke, Gimenez, & Damke, 2018). The literature on strategy formulation is rich, but this literature does not capture the intricacies of small and medium enterprises (SMEs) in emerging markets (Ahmed & Mukhongo, 2017). The study aims to gain an understanding of strategy formulation practices among the SMEs in emerging markets, particularly Zimbabwe. The philosophy of interpretivism guided the study. The study adopted a qualitative case study strategy in which data collection was conducted through semi-structured interviews with 15 manufacturing SME owners/managers in Harare, Zimbabwe. The results of the study revealed that the majority of participants understand strategy formulation and are greatly involved in strategy formulation. However, the study revealed that strategy formulation is not logically and systematically done thus does not resemble the conventional textbook strategic formulation models. Theoretically, the findings revealed that strategy formulation in SMEs is both an externally (market-based) and internally (resource-based) guided practice. The study advises SMEs to balance professionalism and responsiveness when strategising, that is balancing the process perspective with the learning perspective. The study was conducted in one city; similar studies could be conducted in other parts of the world to find similarities and differences.