STRATEGIC PLANNING, SOCIAL NETWORK RELATIONSHIP, AND PERFORMANCE OF SMALL AND LARGE FIRMS IN GHANA

ABSTRACT
The objective of the study was to evaluate the strategic planning, social network relationship, and performance of small and large firms in Ghana. In an emerging economy it has been identified that performance of firms lies also on the social Networking Relationship, (Acquaah, 2007; Li et al., 2008; Li and Zhang, 2007; Peng and Luo, 2000). Semi-structured questionnaire as a tool was used in the collection of data from Small and Large firms answered by their managers/owners/ administrators yielding to a total of 300 questionnaire. In the measure and analyzing of the variables the measure through Confirmatory Factor Analysis was used in measuring the effect of the variables of strategic planning, Social Network Relationship to the performance of Small and Large firms, and to determine the level of moderation. The strategic planning in the area of goal setting, analysis and scanning was identified as moderately accurate in the small and large firms in Ghana. The extent to which top managers of small and large firms in Ghana develop and use personal and social networking relationships for the past three years was observed to be frequently used. Social networking relationship also has significant effect on firm performance of small and large firms in Ghana. The effect of the small and large firm strategic planning on firm performance was moderated by social networking relationship but statistically insignificant. In conclusion, higher level of strategic planning and social networking relationship conditionally stimulated operational and financial performance of small and large firms in Ghana. The managers of small and large firms should develop strategic plans for their business activities. This can be achieved through formulation of a mission statement of the firm, establishing objectives, crafting and implementing the strategies, and monitoring and controlling the progress in strategy implementation. Personal and social networking relations with communities’ stakeholders, government and business should be enhanced by managers of small and large firms in Ghana.


CHAPTER ONE
1.1  Introduction
This section of the chapter introduces the topic at stake, which involves evaluating the strategic planning, social network relationship, and performance of small and large firms in Ghana, areas captured involves background, problem statements, objectives, research questions, research hypothesis, significant of the study, method applied in carrying out the study, scope of study, limitations of the study and organization of the study.

1.2  Background
Across countries and regions the definition of SMEs varies under different economic concept. From the perspective of the World Bank SMEs was define as a firm with a number of employees with a scale number of 300 and total annual sales of US$ 15 million (Pearce and Robinson, 2009). Other scholars evaluate SMEs as firms which engage the services of employees less than 250 person with an annual turn-over exceeding 50million Euro and the total of their annual balance sheet not exceeding 43million Euro to the European union.

Moreover the definition on firm’s size varies with regards to academic sources (Halland Cook, 2009) on of official sources (e.g. the USA – Hatten, 1997; 1971; Storey, the UK – Bolton, 1994; European Commission – European Commission, 1996). In context of that the main groupings adopted was in regards to the volumes of sales in monetary value, the number of full-time employees and the money value of total asset. On the concept of strategic factors, Pearce and Robinson (2009) outline such factors as the practice of gaining competitive edge in the market places. This was further elaborated as being determine or identify by top management, and as such differs from operational issues being govern by first line managers and middle level managers which involves day-to-day function of business. According to Halland Cook, (2009) achieving a comparative edge, firm needs to combine different resources within every field of operation. Moreover Such capabilities of strategic approach where a firm acquire and applies these resources ensure superior performance overtime (Acquaah, 2012).

On the perspective of social Network relationship religious, social and family functions such as (especially kings of ethnic groups, chiefs of towns and cities and village heads) are seen as the standard bearers within the societal context and their role are very critical in the lives and activities of organizations and individuals (Acquaah, 2012). Leaders within the religious fraternity such as traditional and modern, (e.g. Islam, Christianity etc.), have a very strong impact in the level of influence on individuals and business leaders in Ghana.

This is as a result of the high level of trust, in norms and shared values between traditionalist, religious leaders and the community. Currently Essentially community leaders in Ghana are cornerstone of societal norms, with a shared understanding and expectations, that serves as acceptable practices and behavior of the business environment with most communities (Salm and Falola,2002).

In an emerging economy, it has been identified that performance of firms lies also on the social Networking Relationship, (Acquaah, 2007; Li et al., 2008; Li and Zhang, 2007; Peng and Luo, 2000). Based on that in achieving business success among small and large firms the ability to ensure a strong Social Networking relationship with other stake holder such as community leaders, political leaders, bureaucratic government official should be of key concern to management of Small and large firms, this is in a bid to achieving success (Li et al., 2008).

The value gain through the engagements of social networking relationship by firms involves gaining of critical resources in the form of knowledge acquisition and exploitation, human capital, financial capital and technological opportunities, these in the long run enhance firm’s level of performance and success (Li et al., 2008). On the measure of performance Return on Asset (ROA) and Return On sales (ROS) are mostly the line of focus through which firms performance are could be measured. Such level of measure in performance has been established in many field of operations studies (Lerner & Almor, 2002:Yusuf & Saffu, 2005; Saffu & Manu, 2004). According to Neely et al (2002), these approaches in the measure of performances are of much important as it serves as a guide to management in the analyzing and collections of information. Base on the above evaluations it is essential to investigate the effects of “strategic planning, social networking relationship, and performance of small and Large scale firms within Ghana

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Item Type: Ghanaian Postgraduate Material  |  Attribute: 70 pages  |  Chapters: 1-5
Format: MS Word  |  Price: GH50  |  Delivery: Within 30Mins.
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