Research Proposal on Strategic Planning, Innovation & Change: Keys to Business Success

Introduction

Strategic management entails continuous planning, observing, analyzing, and assessing all activities that are necessary for achieving the goals and objectives of an organization (Abosede, Obasan & Alese, 2016). When a business changes its environment, it is recommended to evaluate its strategies to attain success. Innovation is a practice of transforming an idea to a good or service in a way that creates value for the customer. In businesses, change is useful when management applies new ideas or initiatives to satisfy customer needs and expectations (Pisano, 2015). Strategic management and innovation are two aspects that drive business success. A business that wants to achieve a competitive advantage must incorporate change in its strategic decisions. The company must create an environment that motivates workers to focus on the achievement of projects. Engagement of innovative solutions in business helps in meeting customer needs (Machado & Mole, 2014).

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Many businesses today are embracing strategic management and innovation to increase competitiveness in the market (Baporikar, 2014). Adapting strategic management choices that incorporate change is essential for a business to compete in the local and international markets (Abosede et al., 2016). It is the role of the management to analyze, design, and implements coherent strategies and structure businesses in a way that supports the successful execution of the procedure. In the small and medium industry, strategic management and innovation have been applied in business through value creation, internationalization, product diversification, open innovation as well as clustering among other elements (Machado & Melo, 2014). Based on the endogenous growth theory, companies apply changes to reduce market uncertainties and drive economic growth (Abosede & Anakoya, 2013). A strategic choice of investing in research and development in businesses supports changes to increase the productivity of a business. A company that fails to use innovative solutions, and the benefits of lower prices may not exceed that of innovativeness. Therefore, strategic management and innovation in businesses go hand in hand to give competitive advantages for the company in the marketplace (Abosede et al., 2016). In the Chinese context, strategic management and innovation is not a new thing. Companies have applied these elements in achieving a competitive advantage. The current study will examine the subject of strategic management and change in the small and medium industry in China with particular reference to the Matchmaking Agency Company.

Research Questions

1. Do small and medium industry companies in China embrace strategic management and innovation?
2. How do small and medium industry businesses in China apply strategic management and innovation?
3. To what extent can small and medium industry organizations in China improve their application of strategic management and innovation for business productivity?

Research Objectives and Statement of the Problem

Research Objectives

1. To examine whether small and medium industry companies embrace strategic management and innovation.
2. To investigate how small and medium industry companies apply strategic management and innovation.
3. To evaluate how small and medium industry companies can improve their application of strategic management and innovation for business productivity.

Statement of the Problem

The application of strategic management and innovation in organizations has focused on the use of technology is the only significant way of innovativeness in businesses. In China, innovative companies are highly associated with the use of technology. Quan, Loon, and Sanderson (2018) examined the innovation in the local context in China and revealed that many successful businesses focus on technology as the only way of change. However, the difference is more of engaging in strategic diversification, innovativeness in the production methods, product design, and vertical integration strategy. In the area of research, previous studies emphasize the application of strategic decisions and innovation in small and medium businesses in the manufacturing industry, construction, motor, and technology industries. Krasniqi and Kume (2013) found out that small and medium companies make an effort to strategically manage and innovate their operations through the creation of new networks, internationalization, growth orientation, organization learning, and technology advancement. No research has been made on small and medium businesses in the matchmaking agency in China or any other country. The present study aims at closing a gap in research and literature to establish how small and medium businesses in the matchmaking agency apply strategic management and innovation solutions for business productivity.

Literature Review

Strategic Management and Innovation in Small and Medium Companies

Small and medium businesses embrace strategic management and innovation in their operations. Kee-Luen, Hiam, Yong, and Seng-Fook (2013) argued that manufacturing companies in Malaysia apply strategic planning in managing their operations. Such businesses have a high possibility of performing better than those who do not incorporate strategic planning. Learning and innovation in manufacturing businesses in Malaysia is a crucial aspect that drives productivity in organizations. Abosede et al. (2016) noted that innovativeness is embraced in both high-tech and small and medium industries in China. The small and medium enterprises in China embrace flexibility in their operations that help them adapt strategic choices that drive competition in the changing market locally and internationally. The findings show that the success of small and medium businesses in China lies in the capacity to access, transfer as well as application technology. The knowledge of entrepreneurial competitiveness supports innovative decisions in strategically managing companies.

How Small and Medium Industry Companies Apply Strategic Management and Innovation

Small and medium industry companies apply strategic management and innovation in various ways. Steinfeld and Beltoft (2014) revealed that in China, small and medium companies use innovation and strategic management through building commercially viable ideas. In the manufacturing industry, products and their designs are innovatively and strategically sought through component sourcing. It shows that commercialization through the adaptation of technologies and business models are strategies that drive the competitiveness of small and medium companies in China. These views support the application of an innovative framework in strategic decision-making that promotes the productivity and competitiveness of the business in the market. Zhan, Tan, Ji, Chung, and Tseng (2017) revealed that the use of technological innovations such as the big data framework accelerates the processes of product invention. Strategic decisions can be made after determining the weaknesses of a product within the development cycle.

Strategic management and innovation are elements that explain why customers will be willing to pay more for a specific product. The ability to prioritize customer needs when making strategic decisions and using innovation address the requirements guarantees better performance of the company products in the market. Abosede et al. (2016) stated that small and medium businesses in the Chinese context are becoming more flexible by adapting strategic choices that reflect changes in the market, and that makes them able to face competition. It means that companies support innovative ideas for strategy formation and execution. These businesses gain competencies as well as competitive advantages that promote transformational leadership, and diversity that impact improved behavior and performance of workers (Lu, Au, Pend, & Xu, 2013).

How Small and Medium Industry Companies can Improve their Application of Strategic Management and Innovation for business productivity.

Small and medium industry businesses can improve their application of strategic management and innovation through internationalization, growth orientation, and promotion of organizational learning (Krasniqi & Kume, 2013). However, much has to be done the company leadership, structure, business environment, and approach to the regional markets. Benchmarking performance with other companies in the small and medium industry is useful to gauge the competitiveness in the market (Manurung & Kosasih, 2013)). In such cases, businesses can establish their competitive advantages and weaknesses in strategic management and innovation as well as develop new approaches to improve performance. Their proactive strategies, such as corporate growth and differentiation, should incorporate a strategic planning model that steers innovative solutions (Abosede et al., 2016).

Significance of the Study

The research will benefit various groups, including small and medium organizations, the Matchmaking Agency Company, and similar organizations as well as future researchers. Businesses in the small and medium industry will gain from the information provided in the study as they will be able to learn the importance of making strategic choices and innovative solutions for their organizations. The management at Matchmaking Agency Company in China and similar organizations will gain from this study as it explores their industry. It contributes to the knowledge about strategic management and innovation for small and medium businesses in the matchmaking agency sector. They will learn how their level of success when it comes to applying strategic management and innovation in their practices and identify the areas of improvement. Future researchers in the topic of investigation will benefit from the study as it will form a background reference for further exploration.

Research Methodology

A quantitative research design will be used to collect and analyze data. It is a method that allows the collection of numerical data and the use of statistical techniques when interpreting data (Brians, 2011). Primary data will be collected using a questionnaire survey. Data will be obtained from the employees of the Matchmaking Agency Company in China. Simple random sampling will be used to select the participants whereby an equal chance to all employees will be given for participation in the study (Wilson, 2014). Closed-ended questions will be used when designing the questionnaire to provide uniformity and ease in data analysis (Creswell, 2014). Data will be analyzed using statistical techniques, including Ms. Excel application and SPSS software.

References

Abosede, A., & Onakoya, A. (2013). Intellectual Entrepreneurship: Theories, Purpose, and Challenges. International Journal of Business Administration, 4(5), 30-37. DOI: 10.5430/ijba.v4n5p30

Abosede, A., Obasan, K., & Alese, O. (2016). Strategic management and small and medium enterprises (SMEs) development: A review of the literature. International Review of Management and Business Research, 5(1), 315-335. ISSN: 2306-9007

Baporikar, N. (2014). Innovation strategies in SME: Global perspective. IGI Global. DOI: 10.4018/978-1-4666-4731-2.ch016

Brians, C. (2011). Empirical political analysis: International edition. 8th Edition. Taylor & Francis. ISBN 9781138088764.

Creswell, J. (2014). Research design: Qualitative, quantitative, and mixed methods approach. 4th ed. Thousand Oaks, CA: Sage. Retrieved from http://englishlangkan.com/produk/E%20Book%20Research%20Design%20Cresswee...