Entrepreneurs' Strategic Management Mode and Small-Scale Manufacturing Firm Performance in Ghana: Mediating Role of the Strategy Adopted

Many small-scale manufacturing firms in Ghana often operate under difficult, unpredictable and resource-scarce conditions, yet many use informal and/or weak approaches to strategy with the risk of poor performance. Thus far, it is unclear how the way owners/managers “do” strategy translates into concrete strategic decisions and ultimately impacts performance levels for these firms. Based on the contingency theory, the study examined how different modes of strategic management affect small-scale manufacturing performance both directly and indirectly through the strategy adopted. Adopting a quantitative research methodology, data were collected from 435 owners and managers of small-scale manufacturing firms and analysed using partial least squares structural equation modelling. The results showed that strategic management mode of entrepreneurs significantly and positively affects both strategies adopted and small-scale manufacturing performance. Strategy adopted also has a significant positive effect on small-scale manufacturing performance and mediates the relationship between strategic management mode and small-scale manufacturing performance. The study contributes to entrepreneurship and strategic management literature by specifying the pathways through which strategic management modes lead to performance outcomes. Theoretically, the results offer relevant suggestions to entrepreneurs and policymakers to improve competitiveness, resilience and sustainability of small manufacturing firms in Ghana.