Strategic Planning Frameworks and Sustainable Competitive Advantage for Small and Medium Enterprises in Nyarugenge District, Kigali City
DOI:
https://doi.org/10.47604/ijsm.3566Keywords:
Environmental Scanning, Porter’s Five Forces, Balanced Scorecard, Strategic Planning, Sustainable Competitive AdvantageAbstract
Purpose: The study examined the influence of strategic planning frameworks on the sustainable competitive advantage of small and medium enterprises (SMEs) in Nyarugenge District, Kigali City. Specifically, it analyzed the effects of environmental scanning, Porter’s Five Forces framework, and the Balanced Scorecard on SME competitiveness.
Methodology: A cross-sectional design using a mixed-methods approach was adopted. Data were gathered from 132 participants drawn from 49 SMEs through questionnaires, interviews, and document review, selected via stratified random sampling. Quantitative data were analyzed using descriptive statistics, correlations, and multiple regression in SPSS v30, while qualitative data were thematically analyzed. Reliability was confirmed with a Cronbach’s alpha of 0.81.
Findings: Results revealed a strong positive relationship between the three predictors and sustainable competitiveness (R = .943, R² = .890). Porter’s Five Forces framework emerged as the most influential predictor (β = .623, p < .001), followed by environmental scanning (β = .304, p = .0106) and the Balanced Scorecard (β = .230, p = .018). SMEs that systematically applied these frameworks achieved improved operational efficiency, customer retention, and long-term competitiveness. Qualitative findings supported the quantitative results, emphasizing proactive market analysis and strategic adaptability as core practices among SMEs.
Unique Contribution to Theory, Practice and Policy: The study enriches strategic management theory by integrating environmental scanning, Porter’s model, and the Balanced Scorecard into a unified framework for SME competitiveness. Practically, it demonstrates that structured strategic planning enhances resilience and sustainability in resource-limited contexts. Policymakers and SME support institutions are encouraged to promote capacity-building programs, embed strategic management training, and incentivize adoption of planning frameworks through tailored financial and advisory mechanisms.
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