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

Gender	Frequency	Percentage (%)
Male	260	59.8
Female	175	40.2
Total	435	100
Age	Frequency	Percentage (%)
Up to 25 years	35	8
26–35 years	127	29.2
30–45 years	178	40.9
46–55 years	86	19.8
56 years and above	9	2.1
Total	435	100
Educational Qualification	Frequency	Percentage (%)
No formal education	31	7.1
Junior (SS)	107	24.6
Senior (SS)	114	26.2
Technical Certificate	81	18.6
Diploma/HND	59	13.6
Bachelor's Degree	40	9.2
Postgraduate Degree	3	0.7
Total	435	100
Position in business	Frequency	Percentage (%)
Owner/Founder	276	63.4
Manager	90	20.7
Supervisor	69	15.8
Total	435	100
Years of business operations	Frequency	Percentage (%)
Less than 1 year	11	2.5
1–3 years	94	21.6
4–7 years	153	35.2
8–10 years	104	23.9
More than 10 years	73	16.8
Total	435	100
Number of employees	Frequency	Percentage (%)
Up to 5	199	45.7
06–Oct	137	31.5
Nov–20	74	17
21–50	23	5.3
51–100	2	0.5
Total	435	100
Primary industry	Frequency	Percentage (%)
Food and beverage	151	34.7
Textile and clothing	124	28.5
Automotive	26	6
Machinery	51	11.7
Chemicals	72	16.6
Plastics	11	2.6
Total	435	100
Ownership structure	Frequency	Percentage (%)
Sole proprietorship	275	63.2
Partnership	92	21.1
Company (Limited Liability)	41	9.4
Incorporated (Private Partnership)	1	0.2
Joint Venture	23	5.3
State Owned Enterprise	3	0.7

[i] Source: own processing

Table 2.

Construct validity

Variable	Small-scale manufacturing firm performance	Strategic Management Mode	Strategy adopted
SSMP1	0.807
SSMP2	0.773
SSMP3	0.804
SSMP4	0.791
Deliberate Strategy		0.736
Emergent Strategy		0.792
Reactive Strategy		0.807
Cost Strategy			0.800
Delivery Strategy			0.851
Flexibility Strategy			0.824
Quality Strategy			0.664

[i] Source: own processing

Table 3.

Reliability and convergent validity

Variable	Cronbach's alpha	Composite reliability (rho_a)	Composite reliability (rho_c)	Average variance extracted (AVE)
Small-scale manufacturing performance	0.805	0.805	0.872	0.631
Strategic Management Mode	0.677	0.684	0.822	0.607
Strategy adopted	0.797	0.820	0.867	0.621

[i] Source: own processing

Table 4.

Discriminant validity using Fornell-Larcker criterion

Variable	Small-scale manufacturing performance	Strategic Management Mode	Strategy adopted
Small-scale manufacturing performance	0.794
Strategic management mode	0.617	0.779
Strategy adopted	0.676	0.679	0.788

[i] Source: own processing

Table 5.

R² statistics

Variable	R²
Small-scale manufacturing performance	0.503
Strategy adopted	0.461

[i] Source: own processing

Table 6.

F² statistics

Path	F²
Strategic Management Mode -> Small-scale manufacturing performance	0.093
Strategic Management Mode -> Strategy adopted	0.855
Strategy adopted -> Small-scale manufacturing performance	0.247

[i] Source: own processing

Table 7.

Collinearity statistics

Variable	VIF
SMMP1	1.720
SMMP2	1.551
SMMP3	1.675
SMMP3	1.574
Cost Strategy	1.637
Deliberate Strategy	1.263
Delivery Strategy	1.969
Emergent Strategy	1.397
Flexibility Strategy	1.762
Quality Strategy	1.400
Reactive Strategy	1.324

[i] Source: own processing

Table 8.

Direct and mediating effects

Hypothesis	B-value	t-statistics
H1: Strategic Management Mode -> Small-scale manufacturing performance	0.293	4.790
H2: Strategic Management Mode -> Strategy adopted	0.679	13.564
H3: Strategy adopted -> Small-scale manufacturing performance	0.477	7.602
H4: Strategic Management Mode -> Strategy adopted -> Small-scale manufacturing performance	0.324	6.618

[i] Source: own processing

References

Authors

Metrics

Articles in this issue

DOI: https://doi.org/10.2478/mdke-2026-0018 | Journal eISSN: 2392-8042

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Language: English

Page range: 325 - 343

Submitted on: Feb 10, 2026

Accepted on: Apr 21, 2026

Published on: Sep 29, 2026

Published by: Scoala Nationala de Studii Politice si Administrative

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

strategic management mode,

strategy adopted,

small-scale manufacturing firm,

structural equation modelling,

contingency theory,

entrepreneurial decision making

Related subjects:

Business and economics,

Political economics,

Macroeconomics,

Business management,

Business management, other,

Social sciences,

Sociology,

Labor, trade unions,

Sociology of economy, organizations, and industry

© 2026 Gerald Kojo AHORBO, Dennis Yao DZANSI, published by Scoala Nationala de Studii Politice si Administrative
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 14 (2026): Issue 3 (September 2026)

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

Figures & Tables

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Paradigm

My account