Relational governance, strategic planning and firm performance

Abstract

PurposeWhile there is growing attention to the efficacy of business and political ties in emerging economies, there are not many studies explicitly examining the relations of business and political ties to small and medium enterprises (SME) strategy formation in emerging economies outside of the East-Asian setting. This study attempts to refine the facilitating role of formal strategic planning (FSP) in the relation of business and political ties to financial firm performance.Design/methodology/approachStructural equation modeling and conditional mediation analyses were used.FindingsThe authors show that while business ties are positively related to FSP, political ties are negatively associated with it. In addition, this study provides empirical evidence that FSP positively mediates the relation of business ties to financial performance. Conversely, there exists a negative indirect relationship between political ties and financial performance. This study shows that the demand uncertainty negatively moderates the relation of FSP to financial performance.Originality/valueThe findings offer noteworthy inferences for firm managers and policy makers, who should evaluate the benefits and costs carried by business and political ties.

Features of Strategic Planning in Agricultural Production in Kazakhstan

“…-strategy as a means of achieving the goals of the enterprise, a plan or model of its actions; -strategy as a set of decision-making rules; -strategy as a programme for the functioning of an enterprise in the external environment, that is, a programme for interacting with competitors, meeting customer needs, realizing the interests of owners, and strengthening the competitive position of the enterprise. Thus, the first group includes the approaches to determining the strategy of Yeniaras and Kaya [20] who note that the strategy is a detailed comprehensive plan assigned to ensure the implementation of the organisation's mission and achieve its goals. An example of the second group is the definition of the strategy by Chandler [21], as "defining long-term goals and objectives of the enterprise, adjusting activities in this regard and attracting the resources necessary to achieve the set goals".…”

The impact of political connections on firm performance in an emerging market: evidence from legal regulations in Vietnam

“…However, when political conditions changed due to shifts in government policy priorities, the impact of these connections on firm performance significantly diminished. Similarly, research by Yeniaras and Kaya (2021) in East Asian countries revealed that firms with political connections initially experienced improved performance, but when political changes occurred, such as changes in government or policy direction, the once beneficial connections became less influential in driving firm outcomes. These findings highlight the dynamic nature of political connections and their vulnerability to shifts in political conditions, indicating that the positive impact on firm performance may not be sustainable when changes in political circumstances occur.…”

Performance risk factors in SME strategic planning

“…Knowing which way to turn, and when best to act, can feel even more of a head-scratching condundrum for smaller businesses than for larger businesses and corporations. A research paper by Yeniaras and Kaya (2021) explores the link between small and medium enterprise (SME) strategies, political ties, and business ties. The impact of these personal network dynamics on the financial performance of SMEs is also examined.…”