The Effect of Strategic Management Practice on Firm’s Perceived Sustainable Performance: The Case Study of Alpha water bottling factory

Abstract

This study investigated "the effect of strategic management practices on perceived sustainable performance at Alpha water bottling factory." Descriptive research design and explanatory research design were used in the study. A mixed research approach was also employed in the study.Regarding to type of data, quantitative and qualitative data which were collected through structured questionnaires and structured interview respectively. Census was used to select respondents and response rate was 92.5% and purposive sampling technique was used to select interviewees. Both descriptive statistics (such as mean and standard deviation) and inferential statistics (Pearson Correlation, multiple linear regressions) were employed. The descriptive analysis from questionnaires’ response revealed there were low factory’s sustainable performance, strategic formulation, strategy implementation; environmental scanning and strategy evaluation practices. Interviewees also had similar view on the problems in strategy implementation and strategy evaluation practice of the factory though they expressed their confidence in the company's formulated strategies and their consideration of internal and external factors. The multiple linear regression analysis confirmed there was positive and significant effect of all four strategic management practices on perceived firm performance. Strategy implementation exhibited the strongest effect on performance, followed by followed by strategy formulation, environmental scanning and strategy evaluation. Based on the findings from the multiple linear regression analysis, it is recommended that the factory ought to prioritize its strategic management practices to enhance its perceived sustainable performance. Specifically, the factory had better focus on strengthening its strategy implementation, followed by strategy formulation, environmental scanning, and strategy evaluation. By placing emphasis on these aspects in the mentioned order, the factory can effectively improve its sustainable performance and competitive edge in the market.