Analysis of the Cause and Effect Relationship between Business Strategic Planning and the Business Performance of Small Businesses
| Autor: | Hwa-Bog Noh, Sung-Joon Lee |
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| Rok vydání: | 2015 |
| Předmět: | |
| Zdroj: | Journal of Distribution and Management Research. 18:35-43 |
| ISSN: | 2384-0145 2384-0137 |
| DOI: | 10.17961/jdmr.18.6.201512.35 |
| Popis: | Purpose: The study aimed to provide an understanding of how business strategic planning affected the business performance of small businesses. To achieve this aim, the study examined what type of mediating role opportunity exploration and resource exploitation played in the relationship between business strategic planning and business performance. Research design, data, and methodology: The study drew out a total of 14 variables from preceding research. Furthermore, it conducted a survey targeting 153 domestic small business founders for data collection. SMartPLS 2.0 was chosen among PLS analysis software and used for statistical analysis of the research model based on the collected data. Results: Empirical analysis revealed that, in order for business strategic planning to affect the business performance of small businesses, the process of actively exploiting resources currently possessed played an important mediating role. Also, focus on exploration into new business opportunities was not directly linked to performance improvement. However this result does not mean that exploration into new business opportunities were unrelated to business performance. Conclusions: The study confirmed that business strategic planning affected business performance through the process of resource exploitation. Therefore, from the viewpoint of the small businesses, the special role of business strategy is to kick-start the recognition toward the need for resource development, such as human resource investment and differentiated marketing programs, which can contribute to short and long-term performance. |
| Databáze: | OpenAIRE |
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