Effects of strategic planning capabilities on organisational performance in Zimbabwean State-Owned Enterprises (SOEs)

Abstract

This study focused on the effects of strategic planning capabilities on organizational performance in Zimbabwean State-Owned Enterprises (SOEs). The extant literature and empirical evidence on strategic planning capability variables, environment scanning, strategy formulation, strategy implementation, strategy monitoring and evaluation, and strategy control were reviewed. The study used a mixed method approach, collecting both quantitative and qualitative data from respondents drawn from SOEs. Quantitative data were collected from a sample of 312 senior executives in Zimbabwean State-Owned Enterprises (SOEs) and analyzed using SPSS Version 21 and AMOS version 21. Quantitative data were complemented by qualitative data collected through interviews with 15 managers from different state-owned enterprises. The results indicate that strategic planning capabilities, individually and collectively, have a significantly positive relationship with organizational performance. While the importance of strategic planning capabilities in improving SOE performance was acknowledged, the study findings reflect that in most SOEs, managers lacked these capabilities, resulting in poor performance in some of the organisations. The findings further reflect that that macro-environmental factors moderate the effect of strategic planning capabilities on the performance of SOEs, implying the need for enhancing SOE managers’ capabilities to effectively analyse the macro environment and astutely manage its impact on the relationship between strategic planning capabilities and organisational performance. Against this background, this study recommends that organizations invest resources in equipping managers with the requisite skills for effective environmental scanning, strategy formulation, implementation, monitoring and evaluation, and control so that they contribute towards performance improvement by effectively managing the strategic planning process. The implications for the research findings to industry, academia, and policymakers are articulated, and recommendations for further study are also provided.