Empirical Study on Strategy Management and Financial Performance: Indian Food SMEs

Abstract

Rationale: Every business organization strives for superior performance, improved competitive edge and better return; the implementation of strategy management concept is one of the most important process to pave the way for survival, development, and growth. The government of India has given much attention to Small and Medium Enterprises (SME) under “Make in India” initiative but strategy management is one of the core ingredients for sustainability and better financial performance. Objective: The primary objective of the study is to investigate the impact of strategy management on financial performance in Indian food SMEs. The secondary objective is to study the difference in practices of strategy management and financial performance with type of food SMEs-manufacturing verses service. Methodology: Descriptive research design has been used. Data were collected from 262 entrepreneurs of food SMEs across the National Capital Region of India using well designed pretested questionnaire. Data were analyzed using appropriate tools of SPSS 21 and Amos 21. Finding: The results of study revealed that there is significant positive impact of strategy management on financial performance of food SMEs. There is no significant difference in practices of strategy management and financial performance with type of food SMEs. Implications: The present study recommends the owner or manager of food SMEs to pay more attention to understand the present business scenario through strategy; and to make safe strides towards sustainability of the organization and to encounter the challenges for better financial performance.

Keywords: Strategy Management, Financial Performance, Food SMEs

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