An examination of implementation of strategic planning among manufacturing SMEs: The case of Lusaka District, Zambia

Abstract

<jats:p>This study investigates the implementation of strategic planning among manufacturing small and medium enterprises (SMEs) in Lusaka District, Zambia. The research aims to assess the awareness of strategic planning practices, examine how these SMEs implement strategic planning, and identify the challenges that hinder effective implementation. This study was guided by the resource-based view theory and the contingency theory. The study integrated the Resource-Based View (RBV) and contingency theory to provide a holistic explanation of strategic planning implementation among manufacturing SMEs. A convergent parallel mixed-methods design was employed, incorporating both quantitative and qualitative approaches. The target population comprised 195 manufacturing SMEs registered with the Zambia Association of Manufacturers (ZAM). Using the Yamane formula, a sample of 131 SMEs was determined, and structured questionnaires were administered, yielding 73 usable responses, resulting in a response rate of 55.7 per cent. Qualitative data were gathered through open-ended survey items and analysed thematically, while quantitative data were processed using descriptive statistics via SPSS. The findings reveal a notable gap between the perceived importance of strategic planning and its actual implementation. Although 88 per cent of respondents rated their awareness of strategic planning as high or very high, 56 per cent reported operating without formalised planning processes. Among those that engage in planning, 62 per cent do not revisit their strategic plans regularly. The most commonly utilised strategic planning tool was SWOT analysis, employed by 88.3 per cent of respondents, while more advanced tools, such as scenario planning, were rarely used. Key challenges identified included short-term operational pressures, lack of skills or expertise, limited institutional support, and inadequate financial resources, all perceived as significant barriers to effective strategic planning. The study concludes that strategic planning practices among manufacturing SMEs in Lusaka are largely informal and underdeveloped. To enhance competitiveness and sustainability, the research recommends targeted capacity-building programmes, the development of simplified planning toolkits, the strengthening of institutional and policy frameworks, and improved collaboration between SMEs, government agencies, and support organisations. Future research should focus on expanding the study to other provinces and investigating the role of digital tools in strategic planning among Zambian SMEs.</jats:p>