Strategic planning and performance of micro and small family businesses in Ghana. The resource based approach.

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AUGUST, 2016
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Particularly among small and medium–sized businesses throughout the world, family firms constitute the prevalent form of business (Westhead & Howorth, 2007). For instance, a study by Timmons and Spinelli (2009: 596) found that over 90% of businesses in the United States of America are family owned. The story is not different from what pertains in other parts of the world. Hence family businesses form a strong backbone for most economies. In spite of the advantages MSFBs offer to every economy, majority of them do not survive especially in their formative years. In line with this, this study sought to examine the effect of strategic planning on the performance of MSFBs in Ghana, the moderating effect of Organizational capabilities (i.e. Managerial and Innovative capabilities). Using structured self- administered questionnaires to sample response from owner-mangers or Chief Executive Officers of MSFBs a sample size of 200 was administered with 194 fully responded to employing the convenience sampling method. To ensure a higher reliability and validity of the constructs, Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were performed using LISREL 8.5. To determine the causal relationship between the constructs, a hierarchical multiple regression (HMR) analysis was employed. The result of the study showed that strategic planning has a positive effect on the performance of MSFBs both operational performance and financial performance. It showed that managerial capability did have a positive moderated effect on the relationship between strategic planning and performance of MSFBs in Ghana. It showed that managerial capability did not show significant moderation between strategic planning and operational performance of MSFBs in Ghana. With regards to the above result, the study recommended an improvement of the managerial and innovative capabilities of MSFBs in Ghana.
A thesis submitted to the Department of Marketing and Corporate Strategy in partial fulfillment of the requirements for the award of Master of Business Administration (Strategic Planning and Corporate Strategy) Kwame Nkrumah University of Science and Technology, College of Humanities and Social Sciences School of Business,