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The Mediating Role of Innovation in Strategic Management Practices and SME Performance: Insights from Emerging Markets in Zambia

Author

Listed:
  • Ndila L. Yanda

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

  • Austin Mwange

    (Graduate School of Business, 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 examines the mediating role of innovation in the relationship between strategic management practices and the performance of small and medium enterprises in emerging markets, with a specific focus on Kabwe District, Zambia. Grounded in the Resource-Based Theory and Dynamic Capabilities Theory, the study analyzes how innovation mediates the relationships between environmental scanning, strategy formulation, strategy implementation, and strategy evaluation and control, and SME performance. Data were collected from 202 SME owners and managers using Likert-scale questionnaires and analyzed with IBM SPSS and Hayes Process version 4.2. The findings reveal no significant mediation effects of innovation between strategic management practices and performance, indicating that strategic management practices independently influence SME performance. The study recommends fostering a culture of experimentation, creativity, and continuous improvement, as well as promoting the adoption of digital technologies to strengthen strategic outcomes within SMEs.

Suggested Citation

  • Ndila L. Yanda & Austin Mwange & John Moose & Clement Mwaanga, 2025. "The Mediating Role of Innovation in Strategic Management Practices and SME Performance: Insights from Emerging Markets in Zambia," East African Finance Journal, East African Finance Journal, vol. 4(1).
    • Handle: RePEc:cwk:eafjke:2025-07
    DOI: 10.59413/eafj/v4.i1.7
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    References listed on IDEAS

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    1. repec:eme:mrn000:01409170710722955 is not listed on IDEAS
    2. Milé Terziovski, 2010. "Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 31(8), pages 892-902, August.
    3. Teece, David J., 2016. "Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm," European Economic Review, Elsevier, vol. 86(C), pages 202-216.
    4. Clement Mwaanga & James Mulenga & Mary Lubinda & Moulen Siame & Kunda Kaliba-Chishimba & Mulenga Chonzi Mulenga & Chilala Sheila Kafula, 2021. "COVID-19 Pandemic and Its Implications on Small and Medium Enterprises (SMEs) Operations in Zambia," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 10(1), pages 1-32, April.
    5. Teece, David J, 2018. "Dynamic capabilities as (workable) management systems theory," Journal of Management & Organization, Cambridge University Press, vol. 24(3), pages 359-368, May.
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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
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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