Effect of strategic management practices on financial and non-financial performance of SMEs in Abidjan, Ivory Coast

Abstract This research investigates the impact of strategic management practices on the performance of small and medium-sized enterprises (SMEs) in the Abidjan Metropolis of the Ivory Coast. Strategic management involves how managers define an organization's long-term direction, establish specific performance objectives, and create strategies to reach them. Strategic planning ensures alignment between an organization's goals, resources, and changing opportunities. This study utilized Strategy Evaluation and Monitoring (SEM) to assess the impact of strategic management practices on SMEs in the Abidjan Metropolitan Area, focusing on the Resource-Based View (RBV) as a strategic management tool, which has received limited attention in SEM research. Data were collected from 300 small and medium-sized enterprises (SMEs) operating in Abidjan using a descriptive cross-sectional design, capturing various details such as gender, age, education level, job position, employee count, experience, and type of organization. Findings indicate that while strategic planning had a negative impact on financial performance, it positively influenced non-financial success. The study also revealed that strategy design has a positive impact on both the financial and non-financial performance of SMEs. Conversely, there was no significant effect on the financial results of the SMEs following the implementation of their plans, and a notable negative impact on non-financial performance was identified during the execution of the strategy. Additionally, strategic review and monitoring were found to have a significant influence on the non-financial performance of SMEs in the Abidjan area. Overall, the results suggest that a competitive advantage positively affects the performance of SMEs, offering important insights into the Resource-Based View (RBV), which highlights that human and social capital resources are crucial success factors for SMEs in times of uncertainty. These insights can significantly aid strategic managers in enhancing their small and medium-sized enterprises '(SMEs') standing in emerging markets during challenging periods.