Strategic Planning as a Mediating Mechanism Between Strategic Thinking, Strategic Innovation, and Women-Owned SME Performance in Pakistan

Abstract

Small and medium enterprises (SMEs) are key to Pakistan's economic development, and are significant in terms of employment creation, poverty reduction, and income generation. Despite the persistently negative outlook, women entrepreneurs (WEs) in Pakistan are still facing all kinds of bottlenecks which include access to finance, social norms and strategic management. This study examines the mediating role of strategic planning between strategic thinking, strategic innovation and performance of women owned small businesses in Punjab, Pakistan. A quantitative research technique was used, and this technique was further supplemented by the use of a convenience sampling technique consisting of 280 women entrepreneurs of Lahore, Faisalabad and Multan who were selected for the study by administering the self-administered questionnaire. Multiple linear regression, confirmatory factor analysis and Partial Least Squares Structural Equation Modelling (PLS-SEM) using SmartPLS 4 were used for statistical analysis. The findings show that strategic thinking and strategic innovation have a positive effect on business performance. Moreover, the relationships between strategic thinking and performance as well as strategic innovation and performance are significantly mediated by strategic planning. The results help fill gaps in the literature related to women entrepreneurship, strategic management, and SME performance in developing countries. Practical implications for women entrepreneurs, entrepreneurship development agencies and policy makers are provided on the importance of strategic thinking, strategic planning and strategic innovation to improve small business performance.

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