PERCEIVED IMPACT OF STRATEGIC PLANNING IMPLEMENTATION ON INTERNAL EFFICIENCY OF SMALL AND MEDIUM SCALE ENTERPRISES IN SOUTHWEST NIGERIA

Abstract

Quality service is a challenge facing our small and medium-scale enterprises, as many organizations
now find themselves in circumstances where old methods of strategy management and planning
no longer serve their purpose for an edge as a competitive advantage. Externally-oriented
planning also called strategic planning positions an organization to predict changes in the
environment and act proactively. This paper examined the perceived impact of strategic planning
implementation on the internal efficiency of small and medium-scale enterprises. A descriptive
survey research design was employed for the study. A structured questionnaire and oral interview
were used to collect data for the study. A sample size of thirty small and medium business enterprises
from Ogun, Oyo, Ondo, and Ekiti States were selected for the study and 120 business owners and
managers were selected using a purposive sampling technique. Data generated for the study were
analyzed using frequency tables, simple percentages, and Chi-square test. The results showed that
strategic planning implementation was perceived to significantly assist SMEs to gain competitive
advantage (χ²=23.04; p<.05); to increase their sales (χ²=9.34; p<.05); and to improve their profit
levels (χ²=42.8; p<.05). The paper concluded that strategic planning implementation significantly
influences internal efficiency of small and medium scale enterprises and recommended that strategic
planning implementation should be adopted by all small and medium business enterprises

Keywords: Strategic management implementation, Strategic planning, competitive advantage, small and medium scale enterprises (SMEs)