Do Strategic Management practices improve the performance of Small and Medium Enterprises (SMEs) in Sri Lanka?
Small and Medium Enterprises (SMEs) act as an engine of the economic growth of Sri Lanka. It enables to eradicate poverty and resolve unemployment, rural development, and advancement of technology. Many scholars have argued that Strategic Management practices are the one of salient factors that contribute to SMEs' performance. Thus, this study is attempted to examine the relationship between Strategic Management practices and the performance of SMEs in Sri Lanka. Since there are no satisfactory studies have been conducted on this phenomenon in the Sri Lankan context, this research study enables to fulfill the empirical research gap in the existing body of literature. This study was inspired by the quantitative approach under the positivistic research paradigm. Data were collected through an online structured questionnaire distributed among the owners and managers of SMEs in Sri Lanka. Collected data were analyzed by using descriptive and correlation analysis. The findings of the study revealed that the performance of the SMEs in Sri Lanka is influenced by the Strategic Management practices: strategy formulation, implementation, and review and control. Thus, by implementing the Strategic Management practices, SMEs can improve their performance; market share, revenue, profits, and return on investments.
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