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Environmental Scanning and SME Performance: A Strategic Analysis of Dynamic Capabilities and Resource-Based Perspectives in Kabwe District, Zambia

Author

Listed:
  • Austin Mwange

    (Graduate School of Business, The University of Zambia, Lusaka, Zambia)

  • Ndila L. Yanda

    (Institute of Distance Education, The University of Zambia, Lusaka, Zambia)

  • John Moose

    (Institute of Distance Education, The University of Zambia, Lusaka, Zambia)

  • Clement Mwaanga

    (School of Business, Mulungushi University, Kabwe, Zambia)

Abstract

This study investigates the impact of environmental scanning on the performance of small and medium enterprises (SMEs) in Kabwe District, Zambia. Grounded in the Resource-Based Theory and Dynamic Capabilities Theory, the research evaluates the duration, frequency, and scope of environmental scanning activities among SMEs, as well as the processes involved and their effectiveness in enhancing business performance. Data were collected from 202 SME owners and managers through structured Likert-scale questionnaires and semi-structured interviews. Quantitative data were analyzed using Structural Equation Modeling, while qualitative data were examined through Directed Content Analysis. The findings indicate a positive relationship between environmental scanning and SME performance, although the practical application of systematic scanning practices remains limited. The study recommends fostering a culture of experimentation, creativity, and continuous improvement, strengthening cross-functional collaboration, enhancing access to digital technologies, and implementing policy interventions to improve SME access to financial, technological, and infrastructural resources.

Suggested Citation

  • Austin Mwange & Ndila L. Yanda & John Moose & Clement Mwaanga, 2025. "Environmental Scanning and SME Performance: A Strategic Analysis of Dynamic Capabilities and Resource-Based Perspectives in Kabwe District, Zambia," East African Finance Journal, East African Finance Journal, vol. 4(1).
    • Handle: RePEc:cwk:eafjke:2025-06
    DOI: 10.59413/eafj/v4.i1.6
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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