Designing a Strategic Renewal Model for Small and Medium-Sized Enterprises

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Keywords:

Strategic Innovation, Strategic Agility, Small and Medium-Sized Businesses

Abstract

This study aimed to design and validate a strategic renewal model for small and medium-sized enterprises by identifying its causal, contextual, intervening, strategic, and outcome-related components. This applied study employed an exploratory sequential mixed-methods design based on grounded theory. In the qualitative phase, 15 university experts and managers of small and medium-sized enterprises in Kurdistan, Kermanshah, and Hamadan provinces were selected through purposive and snowball sampling. Data were collected through semi-structured interviews and analyzed using open, axial, and selective coding. In the quantitative phase, a researcher-developed questionnaire derived from the qualitative findings was administered to 365 managers and owners of small and medium-sized enterprises. The data were analyzed using partial least squares structural equation modeling. Marketing capability and social capital had positive and significant effects on strategic renewal, with path coefficients of 0.457 and 0.458, respectively. Strategic renewal positively predicted organizational capability, with a coefficient of 0.576, and strategic agility, with a coefficient of 0.661. Entrepreneurial opportunities also significantly predicted organizational capability and strategic agility. Organizational capability had significant positive effects on financial performance and product and service quality, while strategic agility significantly improved both outcomes. The direct effects of environmental conditions and managerial characteristics, as well as the moderating effects of environmental conditions, were not significant. The model explained 72.3% of the variance in strategic renewal, 69.7% in organizational capability, 72.3% in strategic agility, 44.6% in financial performance, and 42.2% in product and service quality. Strategic renewal in small and medium-sized enterprises is primarily developed through marketing capability and social capital and improves financial and nonfinancial performance by strengthening organizational capability and strategic agility.

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Khalil Rashid, J., Doostar, M., MalekAkhlagh, . E. ., & Hooshmand Chaijani, M. . (1405). Designing a Strategic Renewal Model for Small and Medium-Sized Enterprises. Management, Education and Development in Digital Age, 1-27. https://jmedda.com/jmedda/article/view/465

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