6.6 INFERENTIAL STATISTICS
6.6.3 RESEARCH OBJECTIVE 4: STRATEGY FORMULATION APPROACHES AND
6.6.3.1 Strategy formulation approaches and short term financial performance 6.6.2.1.1 Planned approach and short term firm performance model Summary
From Table 6.31, An R of -0.262 suggests that there is a weak negative relationship between the two variables. The coefficient of determination (R-squared) of 0.069 illustrates that 6.9 % of manufacturing SMEs’ poor short term financial performance can be explained by the adoption of deliberate/planned strategy making approaches.
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The adjusted R-square of 0.073 indicates that the planned approach to strategising, excluding the constant variable, explains the change in the short term financial performance of manufacturing SMEs by 7.3 %; the remaining 92.7 % can be explained by other factors excluded from the model.
TABLE 6.31: PLANNED APPROACH AND SHORT TERM FINANCIAL PERFORMANCE MODEL SUMMARY
R R square Adjusted R square Standard error Observations
-0.262 0.069 0.073 0.59 105
Table 6.32 shows the Analysis of Variance (ANOVA) for regression coefficients. The results revealed that a planned approach is statistically insignificant in accounting for a firm's short term financial performance.
TABLE 6.32: PLANNED APPROACH AND SHORT TERM FINANCIAL PERFORMANCE ANOVA
Model Sum of
Squares
Df Mean
Square
F Sig.
1
Regression 37. 108 1 37.108 21.067 .007
Residual 87.871 104 0.845
Total 124.979 105
a. Dependent Variable: Short term Financial Performance b. Predictors: (Constant), Planned approach
An F statistics of (21.067) indicate that the model is insignificant. This was supported by a probability value of (0.007). The reported probability of (0.007) is more than the conventional of (0.005), hence, insignificant.
6.6.2.1.2 Emergent approach and short term financial performance model summary
From Table 6.33, an R of 0.827 suggests that there is a strong positive relationship between emergent approaches to strategy formulation and short term financial performance of manufacturing SMEs in Zimbabwe. The coefficient of determination (R-squared) of 0.684 illustrates that 68.4 % of manufacturing SMEs’ short term financial performance can be derived from the use of emergent strategy making approaches of SMEs.The adjusted R-square of 0.562 indicates that the emergent approach to strategising excluding the constant variable explains the change in the short term financial performance of manufacturing SMEs by 56.2 %; the remaining 43.8 % can be explained by other factors excluded from the model.
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TABLE 6.33: EMERGENT APPROACH AND SHORT TERM FINANCIAL PERFORMANCE MODEL SUMMARY
R R square Adjusted R square Standard error Observations
0.827 0.684 0.562 0.65 184
Table 6.34 shows the Analysis of Variance (ANOVA) for regression coefficients. The results revealed that the emergent approach is statistically significant in accounting for a firm’s short term financial performance of manufacturing SMEs in Zimbabwe.
TABLE 6.34: EMERGENT APPROACH AND SHORT TERM FINANCIAL PERFORMANCE ANOVA
Model Sum of
Squares
Df Mean
Square
F Sig.
1
Regression 42.651 1 42.651 26.982 .003
Residual 91.683 104 0.882
Total 134.333 105
a. Dependent Variable: Short term Financial Performance b. Predictors: (Constant), Emergent approach
An F statistics of (26.982) indicate that the model is significant. This was supported by a probability value of (0.003). The reported probability of (0.003) is less than the conventional of (0.005) hence significant.
6.6.3.2 Strategy formulation approaches and long term financial performance
6.6.3.2.1 The Planned approach and long term financial performance model Summary
From Table 6.35, an R of 0.709 suggests that there is a strong positive relationship between deliberate approach and long term financial performance. The coefficient of determination (R-squared) of 0.503 illustrates that 50.3 % of manufacturing SMEs’ long term financial performance can be explained by the adoption of the planned approach in strategy making.The adjusted R-square of 0.356 indicates that the planned approach to strategising excluding the constant variable explains the change in the long term financial performance of manufacturing SMEs by 35.6 %; the remaining 64.4 % can be explained by other factors excluded from the model.
TABLE 6.35: PLANNED APPROACH AND LONG TERM FINANCIAL PERFORMANCE MODEL SUMMARY
R R square Adjusted R square Standard error Observations
0.709 0.503 0.356 0.59 105
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Table 6.36 shows the Analysis of Variance (ANOVA) for regression coefficients. The results revealed that a planned approach is statistically significant in accounting for an SME's long term financial performance in Zimbabwe.
TABLE 6.36: PLANNED APPROACH AND LONG TERM FINANCIAL PERFORMANCE ANOVA
Model Sum of
Squares
Df Mean
Square
F Sig.
1
Regression 45.371 1 45.371 27.970 .003
Residual 95. 906 104 0.922
Total 141.277 105
a. Dependent Variable: Long term Financial Performance b. Predictors: (Constant), Planned approach
An F statistic of (27.970) indicates that the model is significant. This was supported by a probability value of (0.007). The reported probability of (0.003) is less than the conventional of (0.005), hence, significant.
6.6.3.2.2 The Emergent approach and long term financial performance model summary
From Table 6.37, an R of 0.433 suggests that there is a moderately positive relationship between emergent approaches to strategy formulation and long term financial performance of manufacturing SMEs in Zimbabwe. The coefficient of determination (R-squared) of 0.187 illustrates that 18.7 % of manufacturing SMEs’ long term financial performance can be derived from the use of emergent strategy making approaches of SMEs.
The adjusted R-square of 0.295 indicates that an emergent approach to strategy development excluding the constant variable explains the change in the long term financial performance of manufacturing SMEs by 29.5 %; the remaining 70.5 % can be explained by other factors excluded from the model.
TABLE 6.37: EMERGENT APPROACH AND LONG TERM FINANCIAL PERFORMANCE MODEL SUMMARY
R R square Adjusted R square Standard error Observations
0.433 0.187 0.295 0.65 184
Table 6.38 shows the Analysis of Variance (ANOVA) for regression coefficients. The results revealed that the emergent approach is statistically significant in accounting for a firm's long term financial performance of manufacturing SMEs in Zimbabwe.
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TABLE 6.38: EMERGENT APPROACH AND LONG TERM FINANCIAL PERFORMANCE ANOVA
Model Sum of
Squares
Df Mean
Square
F Sig.
1
Regression 65.314 1 65.314 26.982 .003
Residual 85.702 188 0.456
Total 151.016 189
a. Dependent Variable: Long term Financial Performance b. Predictors: (Constant), Emergent approach
An F statistics of (26.982) indicate that the model is significant. This was supported by a probability value of (0.003). The reported probability of (0.003) is less than the conventional of (0.005) hence significant.