An assessment of strategic management practices and performance of selected small and medium scale enterprises in the construction sector in Lusaka district.

The purpose of this study was to assess the influence of strategic management practices on
the performance of selected small and medium scale enterprises in the construction sector in
Lusaka District, from 2006 to 2016. The study adopted a descriptive research design. The
target population for the study were SMEs in the construction sector in Kalingalinga, Buseko,
Mtendere, Mtendere East, and Kabwata. These areas were chosen because they accommodate
a lot of SMEs that are in the construction industry. Stratified and purpose sampling were
adopted so as to give each item in the population an equal probability of being selected. The
sample size for the study were 50 managers of SMEs, who were chosen purposively. The
researcher used a questionnaire as a primary data collection instrument. The questionnaire
collected qualitative and quantitative data. The questionnaire was administered through drop
and pick method to the managers working in the selected SMEs. The questionnaire responses
were checked, grouped into various categories to facilitate for analysis using descriptive
statistics. Frequency distribution tables were used to summarise the data from respondents.
The analysed data was presented in frequency distributions tables, pie charts and bar charts
for ease of understanding and analysis.
The study established that SMEs in the construction sector in Lusaka District adopted
moderate strategic management practices in relation to the strategic management model. The
study also established that SMEs faced numerous challenges in the running of their
businesses. The study further established that the adopted strategic management practices
influenced performance of SMEs in the construction sector in Lusaka District. The study
concludes that strategic management practices have an influence on performance of SMEs in
the construction sector. The study recommends that owners of SMEs in the construction
sector in Lusaka District and other organisations need to adopt best strategic management
practices if performance of their enterprises were to improve. While adopting the strategic
management practices, they should always make sure that the process is as inclusive as
possible. It is also recommended that in order to reduce on high rate of business failures,
SME owners need to develop interest in improving their managerial skills through regular
training. Further, owner managers need to formulate superior strategic objectives that include
adoption of technology and innovation, business efficiency and good customer service.
Further, SMEs need to have the right resources (financial and human), because the success of
any business strategy depends primarily on the availability of resources.