Journal of Business & Management

Volume 3, Issue 2 (2014), 01-16

ISSN 2291-1995 E-ISSN 2291-2002
Published by Science and Education Centre of North America

Strategy Implementation Framework Used by

SMEs in Zimbabwe
Tonderai Nyamwanza1,*, & Severino Mavhiki2
1
Department of Entrepreneurship, Midlands State University, Zimbabwe
2
Department of Business Management, Midlands State University, Zimbabwe
*Correspondence: Tonderai Nyamwanza, Department of Entrepreneurship, Midlands State
University, P Bag 9055, Gweru, Zimbabwe. Email: [email protected]
DOI: 10.12735/jbm.v3i2p01

Abstract
The field of strategic management has been expanding to embrace new concepts and models with a
view to better understanding the field. One area of strategic management which is gaining currency
is strategy implementation. Many a scholar and practitioner is exploring ways in which strategy
implementation can be enhanced for organisations to function effectively. Several approaches have
been proffered including the development of implementation models and frameworks. This study
seeks to enhance strategy implementation knowledge among SMEs in Zimbabwe by developing a
new framework that seeks to shed light on how the SMEs implement strategy. The development of
the framework seeks to explain why, despite government policies to support economic growth,
SMEs in Zimbabwe have failed to drive economic growth yet evidence from literature has indicated
the significant role played by SMEs in growing economies in other countries. In depth interviews
were used to gather the data from multiple case studies. The major finding of this study was that the
framework used by SMEs in Zimbabwe emphasized both self and family survival. There appears to
be a significant focus on inward behaviour that focuses on relationships and family anchored
business survival. This could be the underlying reasons for the somewhat underperformance of
SMEs in delivering strong economic growth in Zimbabwe despite a plethora of state driven
assistance programmes. There is therefore need to test the applicability of this model in a
longitudinal study and make adaptations to make the current framework have a more business
focussed approach.
JEL Classifications: M19, L19, L29
Keywords: strategy implementation, implementation frameworks, SMEs, performance
Abbreviations: SMEs – Small to Medium–sized Enterprises; ZIMASSET – Zimbabwe Agenda for
Sustainable Social and Economic Transformation

1. Introduction
The future growth of the Zimbabwean economy has been anchored by policy makers on the
establishment of robust SMEs in the face of business closures by the large scale and multinational
companies. In this regard the Government has been calling for support towards the Small to
Medium-sized Enterprises (SMEs), which is an acknowledgement of the potential benefits it can
contribute to the economy (Tsarwe, 2014). Policies like the Zimbabwe Agenda for Sustainable

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Social and Economic Development (ZIMASSET) was launched in 2013 with a view to drive
economic development anchored to a larger extent on the growth of SMEs and beneficiation of
local resources. However, Government support can only do so much in terms of the development of
the SMEs but the bulk of the success of SMEs should be generated by the sector players.
One area that needs exploration is the behaviours of SMEs to collaborate government efforts.
Despite the conviction of the policy makers of the potential of SMEs to grow the economy Tsarwe
(2014) argued that “already barely into the year, the Zimbabwean economy has shown signs of
weakness as judged by recent reports about the closure of a number of companies that are finding it
difficult to stay afloat under the current economic hardships.” In addition, Zimbabwe adopted a
multicurrency regime in February 2009 and according to Biti (2013), “as a result of policy
measures, the years 2009-2011 saw serious economic rebound… averaging 9.5% growth, single
digit inflation below 5%.” However 2012 onwards, there are signs that the economy growth has
begun to taper off with economy said to have grown by less than 3.6%. This in way is indicative of
the failure of policy regimes to uplift the development of SMEs into meaningful contributors to
Zimbabwe’s economic development.
The answer for under achievement of SMEs’ ability to drive economic growth does not lie with
policy but with the behaviours of these institutions. Strategic management and particularly strategy
implementation has been considered to be the key behind SMEs success. Strategy implementation is
the most complicated and time consuming part of strategic management and managers do not pay as
much attention to the planning of implementation as they pay to formulating strategy (Shah, 2005).
Understanding how SMEs operators in Zimbabwe behave might be the key to unlocking their
inherent potential. Several scholars have been engaged in coming up with the best approach to the
implementation of strategy with some arguing for the behavioural approach, others have advocated
for the process approach while others have developed frameworks that guide strategy
implementation.
The purpose of this research is to develop a new framework that SMEs in Zimbabwe are using in
strategy implementation and to discuss whether the framework contributes to the survival and
growth of SMEs. The existing frameworks were developed in developed countries and were
developed using single case studies and large organisations. These were found to be partially
applicable to organisations in developing nations. From a literature review, there is no evidence that
such a framework for use by SMEs in Zimbabwe exists.

2. Literature Review
Several factors affect strategy implementation in any type of organisation and, in turn, affect
organisational performance. A myriad of factors can potentially affect a comprehensive strategy or
a single decision. Difficulties usually arise during the subsequent implementation process (Li,
Guohui, & Eppler, 2008). Leaders’ thinking is often flawed; as a result, nine out of ten times, they
fail to successfully implement the strategies they create (Speculand, 2009). Speculand argued that
leaders habitually underestimate the challenge of implementing strategy and delegate this process to
others, taking their eyes off what needs to be done; hence, strategies fail not because the strategy is
wrong, but because the execution was poorly done. Allio (2005), as cited in Li et al. (2008) notes
that:
“Results of several surveys have confirmed this view: An Economist survey found
that a discouraging 57 per cent of firms were unsuccessful at executing strategic
initiatives over the past three years according to a survey of 276 senior executives
in 2004.”

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A White Paper on strategy implementation in Chinese corporations reported that 83% of the
companies surveyed failed to implement their strategies smoothly, and only 17% felt that they had a
consistent implementation process (Li et al., 2008). This underscores the importance of strategy
implementation and indicates management failure in strategy implementation.
Strategy implementation defines the manner in which an organisation should develop, utilize and
amalgamate organisational structures, control systems and culture to follow strategies that lead to
competitive advantage and improved performance (Sorooshian, Norzima, Yusof, & Rosnah, 2010).
It is obvious that strategy implementation is a key challenge for today’s organisations (Li et al.,
2008). Business success is governed more by how well strategies are implemented than by how
good the strategy is to begin with (Speculand, 2009); the implementation of the strategy delivers
revenue, not the crafting of it. Several frameworks have been developed to facilitate strategy
implementation. While organisations understand the need for strategy and effective implementation,
the latter often falls short of the goals the organisation has set itself (Shah, 2005).
According Li et al. (2008),
“There are many (soft, hard and mixed) factors that influence the success of
strategy implementation, ranging from the people who communicate, or
implement the strategy to the systems or mechanisms in place for coordination
and control”.
They also explained “the frameworks present strategy implementation in two ways: either through
the simple categorisation of various factors into groups or categories (e.g. the studies by Skivington
& Daft, 1991; Noble, 1999b; Noble & Mokwa, 1999; Beer & Eisenstat, 2000; Okumus, 2001) or by
relating them to a (often graphic) framework (Noble, 1999a; Higgins, 2005; Qi, 2005; Brenes, Mena
& Molina, 2007)” (as cited in Li et al. 2008). However, Okumus (2001) observes that, starting in
the 1980s several frameworks were developed that are largely conceptual and/or descriptive. These
merely list implementation variables, or illustrate them graphically, and then go on to describe each
variable individually and note its importance in the implementation process (Okumus, 2001).
However, Li et al. (2008) note that some researchers followed the framework and process approach,
with the framework being represented by its rules and resources. They add that “based on
Skivington and Daft’s (1991) study, Noble (1999b) viewed strategy implementation research from a
structural perspective (emphasising organisational structure and control mechanisms) and the
interpersonal process perspective (emphasising strategic consensus, autonomous, strategic
behaviour, diffusion perspectives, leadership and implementation style, communication and
interaction processes)” (as cited in Li et al. 2008).
The fact that there are so many views on strategy implementation is indicative of the evolution of
this field of study and the existence of several approaches that organisations can adopt in
implementing strategy. This also suggests the need for further investigation in order to formulate an
ideal framework for strategy implementation.
None of the previous research studies appear to provide in depth discussion and evaluation on
how other variables interact and how these interactions affect the implementation process and
outcome (Okumus, 2001). According to Eisenhardt (1989):
“A prior specification of constructs can help shape the initial design of theory
building research. Although this type of specification is not common in theory
building studies to date it is valuable because it permits research to measure
constructs more accurately.”
In line with the above arguments, this study will employ the factors developed by Okumus and
various other researchers to understand strategy implementation among SMEs. Okumus (2001)
identified ten key variables namely: strategy formulation; environmental context, uncertainty;

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organisational structure; organisational culture; operational planning; communication; people;

control and feedback; and outcomes, which he constructed into a model built from previous models.
The categories of strategy implementation factors used by earlier studies are strategic content;
context (consisting of organisational context; organisational structure; organisational culture; and
organisational context; uncertainty in general and uncertainty in the task environment); process
(operational planning; resources; people; communication; control and feedback) and strategic
outcomes (Okumus, 2001). This is reflected in the following model (Figure 1):

Figure 1. Strategy implementation frameworks

(Adapted from “International Journal of Contemporary Hospitality, 13/7 by F. Okumus 2001)

According to Li et al. (2008), there are two types of strategy implementation studies: those
highlighting the importance of factors and those that emphasize the ‘big picture’ of how such
factors interrelate and form a strategic implementation environment. Li et al. identified nine
individual factors that influence strategy implementation: the strategy formulation process; the
strategy executors (managers and employees); the organisational structure; communication
activities; consensus regarding the strategy; the relationship among different units/departments and
different strategy levels; the tactics employed; the level of commitment; and the administrative
systems in place. The second stream of the research analysis brings multiple factors together within
a single (arguably comprehensive) framework or model (Li et al., 2008). The above model

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developed by Okumus (2001) captures the majority of the factors highlighted by Li et al. (2008) as
follows:
The revised implementation framework by Okumus includes four parts: context
(strategic decision, multiple project implementation) context (internal context:
organisational structure, organisational culture, organisational learning; external
context: environmental uncertainty in general and task environment), process
(operational planning, resource allocation, people, communication, monitoring
and feedback, external partners) and outcome (tangible and intangible outcomes of
the project).
Dobni, Dobni, & Luffman (2001), categorised these as traditional implementation approaches
and described them as the Achilles heel for many organisations. Okumus (2001) observed that
strategies are initiated and implemented in a strategic context (the overall strategic direction of the
company and the need to design new initiatives). Why are some organisations able to achieve
outstanding results in both financial as well as non-financial terms (e.g. customer and employee
satisfaction) while others are not (Feurer, Chaharbaghi & Wargin, 1995). Okumus emphasizes the
importance of contextual variables; the internal context plays a key role in implementing strategic
decisions (Li et al., 2008). This is in view of the fact that environmental factors are less controllable
than process variables (Bryson & Bromiley, 1993 as cited in Okumus, 2001). Strategy
implementation is more effective because it is more operational (Voola & O’Cass, 2010) and
operational activities are what organisations undertake to achieve performance.
In line with the above views, Okumus (2001) stated that operational process variables are
primarily used and directly involved in the implementation process. !t is assumed that companies
have substantial control over these variables, at least in the short term. He adds that process
variables are primarily employed to implement decisions, while context variables are merely taken
into account due to obstacles and problems in the implementation process. In this regard it will be
interesting to investigate the strategy implementation approaches adopted by SMEs in Zimbabwe,
since studies on strategy implementation have focused on large organisations whose operational
approaches differ significantly from those of SMEs. Finally, Okumus (2001) noted that the outcome
variables are regarded as the expected results of the initiated strategy. This suggests that there are
numerous challenges and that SMEs should adapt their implementation approaches in light of the
fact that there is no single way to achieve successful implementation.
Most SMEs are significantly handicapped and might tend to follow a particular approach to
strategy implementation. Meldrum and Atkinson (1998) observed that when things do not go
according to plan, the status quo is maintained and that, where solutions are sought, they tend to be
simplistic. They note that this underlines that something more than knowledge is required for
successful implementation of a business imperative. Do SMEs in Zimbabwe have the necessary
attributes to successfully implement strategies or they are limited to certain given approaches due to
certain organisational handicaps? The proposition is that organisations should take a more
sophisticated view of what is required to achieve better implementation. Meldrum and Atkinson
(1998) stated that, this can be achieved by senior managers in the organisation taking responsibility
for the development of team members. However, most SMEs in Zimbabwe have serious problems
accessing the resources that they require to successfully implement strategies, particularly human
resources. Storey et al. (1997) (as cited in Meldrum and Atkinson, 1998) postulate that many
organisations are beginning to recognise the significance of management development as a
prerequisite for improvements in the implementation of strategy. Human resources deficits impact
strategy implementation among SMEs and in developing countries where resources are limited;
management development tends to be considered a minor issue and resources are deployed to other
organisational areas.

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The above factors are summarised in the model developed by Okumus (2001), which is used as
lens to carry out this study on strategy implementation among SMEs in Zimbabwe. It should be
noted that SMEs might emphasise different factors which will result in different implementation
approaches and degrees of success. The issues raised in this model are relevant to the study of how
internal dynamics influence strategy implementation among SMEs. The model was developed for
larger international organisations, but will be adapted for use in the Zimbabwean situation. The
other models discussed by Li et al. (2008) contained only certain aspects of Okumus’ (2001) model
and his model is an aggregation of the various models’ key variables. While strategy
implementation is an under researched area (Li et al., 2008), Sorooshian et al. (2010) reported that
strategy has been receiving increased attention due to the fact that the process from project
formulation to project implementation is not effective and therefore not adequate in today’s
business environment.
While Okumus’ (2001) model suggests that if all organisations used it, they would be likely to
successfully implement strategy, it should be noted that organisations vary in a number of ways.
Each organisation will emphasize certain aspects of the model at the expense of others and
accordingly achieve different results. It follows that those who adopt the model will be closer to
achieving their goals while those that do not follow the model will not achieve the desired results.
However, Li et al. (2008) pointed out that the strategic projects examined in their study were
implemented without a proper fit between strategy and implementation. They add that it appears
that any problem or inconsistency within one variable influences the other variables and
consequently the success of the implementation process.

3. Methodology
This was a qualitative study using the multiple case study approach. Eight organisations were
selected using convenience sampling given the fact that only organisations with fewer than 100
employees and were five years or more were chosen for this study. Not all SMEs had the required
characteristics hence the need for special targeting of the businesses to be involved in this study.
Case specific interview outlines were formulated for each organisation to ensure that the
interviewees in each organisation were asked the same questions (Suominen & Mantere, 2010).
However, according to Stake (1995) “trying out the questions in pilot form, at least a mental
rehearsal, should be routine.” The researcher conducted a pilot test on two SMEs in Gweru which
were not part of the study and made the necessary adjustments to the questions. In depth interviews
were conducted with the owner/managers over two hour sessions and these interviews were
collaborated by non-participant observations. Face-to-face individual interviews were held with
eight SMEs owners in the major cities of Harare (3), Bulawayo (2), Gweru (2) and Mutare (1).
After making the necessary appointments, the researcher visited the organisations concerned to
conduct the interviews and to conduct a tour of the business premises in order to understand the
business operations and conduct general observations of employees’ behaviour in their work
environment. After typing, the interview responses were given to the owner/managers for
verification. The owner/managers were asked to make the necessary corrections to the typed
transcripts. Once verified the information was coded using Atlasti after which code families and
memos were created. Content analysis was used to analyse the data collected from the in-depth
interviews and observations made during the study. According to Ellinger et al. (2003) (as cited in
Spens & Kovacs, 2006) content analysis is a "method for the objective, systematic, quantitative and
reliable study of published information, i.e. a suitable method for comprehensive literature
reviews”. Furthermore, content analysis can be used as an instrument for determining key ideas and
themes in publications (Cullinane & Toy, 2000 as cited in Spens & Kovacs, 2006) and for
measuring comparative positions and trends in reporting. The purpose was to come up with

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concepts which were consolidated into a framework for strategy implementation among SMEs in
Zimbabwe.

4. Findings
It was interesting to note that for the SMEs that were growing, the model developed by Okumus
(2001) was substantially applicable; however, success was not only measured in terms of growth of
the business in the Zimbabwean context where businesses were generally struggling under harsh
economic conditions. In six out of the eight cases, success was measured in terms of the
organisation’s ability to survive as all organisations had survived for periods exceeding the five
years threshold. Only two out of the eight businesses under study had a focussed growth strategy
while the others focused on evolutionary growth as demonstrated by their conviction that growth
should be internally driven; which according to the respondents was less risky. SMEs were found to
be very conservative in growing their businesses and as a consequence the businesses did not reach
their full potential. They used profits rather than loans and investors to grow their businesses which
resulted in slow growth; for the purposes of this study, this is classified as survivalist strategies. In
cases where profits were not significant, the SMEs sold previously acquired assets to bridge a
business financing gap and as an example BYO1 sold a five storey building to raise funds to inject
in the business, while GRU1 sold freight trucks for the same purpose. Figure 2 captures the pivotal
approaches to strategy implementation by SMEs pursuing survivalist strategies, which is somehow
different from organisations that are targeting business growth. Consequently, business growth, in
such organisations tends to be delayed and is rather evolutionary and long term.

4.1 Visioning
The majority of the SMEs owners under study emphasized the social welfare approach to
establishing and managing their business, both in the short term and past their retirement.
For example Respondent BYO 1 commented:
“The sole purpose of starting a business was to eventually create employment for
my children and to change my life style. The driving force was my social condition
as my father had Parkinson disease and my uncle went blind at age 60 years.
These conditions forced me to go into business to prepare for such an
eventuality.”
This was further corroborated by GRU 1, who stated:
“When I started, I just saw an opportunity to make money because Sino-Zimbabwe
Cement Manufacturing Company was failing to sell its product yet there was a
large market for cement. An opportunity arose to sell the product. The motivation
then was to make money and live a better life.”
Their goals have always revolved around their personally lives even when they opted to start a
business. They wanted to ensure a comfortable lifestyle for themselves and their immediate and
extended families. Although pertinent, growth was never the driving force given that the vision of
the business was formulated by the owner or the owner’s family for the welfare of the family and
not for business growth.
This is confirmed by BYO 1’s vision which focused on and prioritised the family and its welfare
both in the present and the future:
“I wanted to prepare myself to be self-reliant in good health or poor health which
formal employment could not provide for. Going into business was a sure way of
preparing for old age disability.”
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Environmental Factors

Loyal
Directional Employees
Leadership

Low Resource One way

Vision Survival
Intensity Communication
Unplanned activities Domination
Social, non-formal and Unrealised Potential
unwritten

Low Rewards and Weak Organisational

Recognition Culture

Figure 2. Survivalist approaches to strategy implementation in SMEs

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The visioning had an impact on strategy implementation; whereby the owner was cautious; aiming
for safe bets that would preserve wealth like purchasing property with business generated income
rather than targeting business growth. This approach has both negative and positive effects on
strategy implementation. The motivation for the entrepreneurs involved in traditional business lines
like retail, transport and construction was anchored in social needs and linked to improving the
personal life of the owners and their immediate families.
Those with a vision of social wellbeing tended to pursue any idea that had the potential to raise
additional income, as well as safe investments like property (GRU 1, GRU 2, MRE 1 and BYO 1).
They shifted from one business idea to another. For example, GRU 1 had interests in transport,
building materials, maintenance and construction and real estate management, among other
activities. MRE 1 offered accounting and business advisory services, and moved into fuel retailing.
Strategy implementation tended to vary according to the founding vision, with those in traditional
industries pursuing anything with the potential to make money and improve their social position,
while those in competitive sectors pursued one business line and sought to grow it.

4.2 Directional Leadership

The owners of SMEs in Zimbabwe used directional leadership where employees waited to be
allocated tasks and had very little discretion. This was very apparent in the case of HRE 3, where
employees were only given information for part of the task or the managers ended up undertaking
all the activities for fear of projects being taken over by employees for personal rather
organisational gain. HRE 3 tried to withhold information regarding projects from employees:
“It was very difficult to let all people know about projects because of the fear that
ideas could be stolen and individuals will pursue them for their own good.”
This control mechanism meant that employees could not move to the next level of
implementation and had to wait for fresh instructions. This slowed down implementation. HRE 3
admitted that management ended up doing the work of subordinates. The following statement by
HRE 3 illustrates this belief lucidly stated:
“It was very difficult to let all people know about projects because of the fear that
ideas could be stolen and individuals will instead pursue them for their own good.
However now there is more sharing on the status of projects at our Monday
meetings. This is where we share tasks and update each other on the progress
being made on the various projects being undertaken by the organisation.”
This resulted in very little involvement of the employees in organisational activities thereby
denying the organisation of tacit knowledge with the owner or family was responsible for strategic
planning and the pace of implementation.
Another aspect of their existence was that during their interaction with the environment, SMEs
owners discovered opportunities that had no relevance to their current business operations and
drove the organisation in new directions without any consultations. For example, BYO 1 saw
opportunities in agriculture, decided to move the organisation in that direction and immediately
recruited someone to implement this plan:
“We have begun to diversify our operation to market gardening and beef cattle
rearing at our Bulawayo and Mvuma farms respectively. We are trying to
commercialise both operations since the bookshop business is now under serious
threat. Going forward our business portfolio will be driven by the agriculture and
can survive on that side of the business.”
In the majority of cases, a trial and error approach was adopted in order to test what worked or
did not work; this suggests a level of reactive strategic planning. The traditional businesses knew

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what had to be done to make their family members’ lives comfortable and uncoordinated
diversification was a sure way of boosting their personal security. The hope was that the new
ventures would generate quick profits which will be applied to original business operations.

4.3 Business Resources

A lack of resource intensity was another major finding of this research study. Consequently, most
businesses preferred to grow organically which took a long time to achieve and attempted various
ways to increase the capital base. Alternatively businesses often delayed implementation while they
were mobilising resources from business operations.
Profits became the driving force, to the detriment of other business activities. This approach was
detrimental to long term organisational performance. A case in point was the views expressed by
HRE 3 who stated:
“During the Zimbabwean dollar era we thought that we were making profits but
these were wiped out and we had to build from scratch when the multi-currency
regime was introduced. We needed fresh capital but this was not easy to access
and we have had to rely on our own resources to grow the business. Organic
growth in this environment is very slow given the business volumes and the low
mark ups.”
Most ruled out borrowing as the risk of failure was relatively high and this might jeopardise the
business undertaking. This was also highlighted by the inability to attract quality employees. Where
applicable the resources were generally raised from the sale of previous acquired assets that drained
internally generated resources to finance their core businesses.
The emphasis was on loyal employees who would do the bidding of the employer and forfeit
some of their rights such as salaries not being paid on time. For example, GRU 1 had salary arrears
of about ten months but the employees continued to come to work and in compensation the
organisation allowed them to carry small loads en route to an authorised destination. This allowed
employees to generate income beyond their salaries. Misdeeds were quickly forgiven and as a result
these employees became loyal to the employer. This was reinforced by selective recruitment from
one’s family or church.
In some cases, there was evidence of resource mobilisation to support strategy, mostly in the
form of sale of assets; this was the case with BYO 1 and GRU 1. This was confirmed by HRE 3:
“Due to lack of resources, we have lost many deals. We try to do everything or the
manager responsible for a project will end trying to do everything due to lack in
trust of subordinates and we eventually miss important deadlines. As an
organisation we have lost a lot of money through the behaviour of our employees
and in one case it amounted to US$30 000. We do not have compliance policies
and regulations in place and sometimes we have been forced to pull out of a
contract due to the delivery breaches.”
Other methods to mobilise resources included the pursuit of projects with potential positive cash
flows in the short term, or slowly reinvesting profits in the business. The aggressive pursuit of such
strategies was often lacking. Furthermore, save for HRE 2 and BYO, the other SMEs did not
prepare budgets; hence resource allocations tended to be arbitrary and not supportive of strategy.
SMEs in Zimbabwe generally had problems mobilising resources to implement the strategies
adopted. Only one of the organisations under study claimed that they had few problems mobilising
resources, but at the same indicated that human resources were hard to come by. This problem was
common to most SMEs and is discussed elsewhere. However, only one organisation, BYO 2 sought
to prioritise projects, producing budgets for all projects. BYO 1 and GRU 1 resorted to selling

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assets or using existing assets to serve new purposes. HRE 3 decided to delay projects or
completely pull out of projects and in the process tarnished the image of the company; no criteria
were set to allocate the available resources and in the end resources were availed to the employees
who were the most vociferous. Consequently, the SMEs with clear criteria for allocating resources
grew faster than those that opted for organic growth or had no set allocation criteria.

4.4 Human Resources

The SMEs owners indicated that they recruited employees using different methods but it was
apparent that it was difficult to get skilled and experienced employees. The brain drain was blamed
by some, while others attributed skills shortages to the lack of resources to attract talented
employees. HRE 2 stated that:
“The major challenge in our line of business is the need for the right skills set in
employees which are simply not available in the market place. We have had to
recruit straight from colleges but these employees have the right academic
qualifications but lack the skills necessary to compete in this industry. We have
had to train these employees on the job but the lack of skills has resulted in delays
and speed of action to get to our goals.”
HRE3 concurred:
“As an organisation it has been difficult to recruit the talent than is need to
implement the strategy in place and we have to just do with what is available
people without the necessary experience but with the right education. Hence the
director is the only person focused on the long term bigger picture.”
Consequent to the above, rewards and recognition tended to be absent. In the case of GRU 2, this
resulted in employees demanding tokens of appreciation to serve bulk customers. They would
demand US$1 to serve a customer, which drove certain customers away. Being loyal was seen as
the equivalent of being performing employees. All the SMEs tried to build a certain level of loyalty
among their employees; employees were sometimes pardoned for blatant mistakes or had
communal meals where everyone ate from the same plate, African style.
According to BYO 1:
“Dismissal of employees does not work in small organisations like ours but would
work for large organisations. In our case we get to know family members and the
family situation. This helps a lot in monitoring and controlling the behaviour of
employees at work. Once rehabilitated, they become very principled employees
and very honesty in their business dealings as was the case with the stationery
employee.”

4.5 Organisation Culture

There was also evidence of a weak organisational culture; most organisations ended up evangelising
their employees rather than motivating them to perform. A mixed bag of values was listed by the
respondents. Each organisation purported to have separate values and these varied from
organisation to organisation. Only two organisations, HRE 2 and BYO 2 had written value
statements.
“These values are written down because if you want a system to work for you, you
have to write it down on paper and in our hearts. Values just like strategic plans
are not just nice things to say but we have to live them. When we recruit new
employees, we preach the word of God to them. Our interviews do not seek to
know people from the flesh point of view but from a spiritual point of view. Thirty

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percent of the interview questions or discussion focus on the skills, qualification

and experience realm and the remaining 70% focuses on the spiritual side of the
person. We will be looking for values that are compatible with our business world
view and want people who will assimilate our values from the onset” (HRE 2).
The values of the organisation were said to be in place, but no one bothered to enforce them. BYO
2’s owner and HRE 2’s owner for example stated:
“However, in cases, we have had to fire employees but we normally do this within
the confines of the Labour Act. This normally sends the right message to the other
employees on how they should behave and in cases where we are dealing with
contract employees; we normally do not renew contracts for employees who are
problematic. Normally we let them go for say a month and thereafter call them
back. On their return, they become the most well behaved employees, who are
hardworking and loyal to the organisation.”
The outcome of strategy implementation was survival rather than sustained growth. Most SMEs
did not realise their potential and hence failed to drive the economic growth that SMEs elsewhere
have achieved. SMEs need to do more in Zimbabwe if the economy is to grow. Organisations in
survival mode will never deliver on job creation and economic growth.
Very few processes were followed by SMEs in strategy implementation. Although scholars have
designed models that could be used to facilitate implementation in big organisations (e.g. Okumus,
2001), there is little evidence that such processes were evident in the SMEs under study. No
changes were made to support the strategy being implemented.

4.6 Organisation Structure

This study did not establish realignment of the organisational structure to support the new direction,
save for HRE 2 which included new structures in the new areas they moved into like Zambia, where
local talent was recruited to complement the Zimbabwean staff; and BYO 2, who recruited
specialised staff to meet certain requirements in certain projects. The remainder retained the same
structure. As noted, communication was top down, with very little contribution from other levels; in
HRE 3’s case, employees were starved of necessary information in order to maintain overall control
and direction.
Allen and Helms (2006) contend that, "… a chosen strategy is a set of operationalized practices
and tactics, which managers should understand and then follow the chosen strategy." They add that,
"… managers must focus on all the practices which define their chosen strategy." They conclude
that top managers must work with lower level employees to implement strategic practices consistent
with and supportive of the chosen organisational strategy. This is not consistent with the findings of
this study, as there is no evidence that the SMEs sought to secure the support of lower level
employees. For example employees at GRU 2 acknowledged the changes they were told to institute,
but were not convinced that they were necessary. This did not promote enthusiasm to implement
such strategies that were designed to move the organisation forward.
Boddy and Paton (2005) argue that the nature of the project and whether the goal is stability or
innovation will dictate the implementation approach. They indicate that some projects are intended
to reinforce stability while others foster innovation. In projects that aim to support established,
predictable routines, managers are likely to be well aware of the core technical and organisational
changes required and can plan them with some confidence.
According to Alstete (2007), there is need to extract, share, and preserve the tacit knowledge
base of organisations and combine this with explicit knowledge to enable on-going product/service
innovation for revenue generation. He adds that understanding the nature of one’s own organisation

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and its current performance is critical in benchmarking best practices with other organisational
units, competitors and industry leaders.
The majority of the SMEs under study had no clear modalities in place to measure organisational
performance. For example, GRU 2 was only interested in daily sales figures and only responded to
a decline in sales by reducing its price after comparing prices with those of its competitors.
Secondly, there were no efforts to consistently replace products that sold out fast, thereby wasting
organisational knowledge and learning. In the long term, GRU 2 intended to benchmark on the Spar
brand but this was a very long way off as they intended to build new shops before introducing the
brand. The turnover of managers was also very high in this institution. Only HRE 2 and BYO 2
used benchmarks like budgets to review performance and were able to track both turnover and
profits. HRE 2 was able to review the results of promotions with a view to improving performance
and satisfying stakeholders. Both were involved in competitive sectors and this motivated them to
learn from past experiences. As a result, both experienced significant growth.

5. Discussion
The six entrepreneurs adopted an approach similar to that noted by Mboko and Smith-Hunter’s
(2009) study. They found that while those cases using complete planning have a vision, it is short
term in nature and has a high situational responsiveness. BYO 1, GRU 1 and MRE 1 favoured this
approach; they de-emphasized their business focus to pursue ideas that had income generating
potential. This could have been influenced by the rapidly changing business environment in
Zimbabwe. As businesses struggled to recapitalise in an illiquid market, SMEs could have been
more inclined to focus on survival rather than growth.
Although there was evidence of growth in the SMEs due to some form of strategic planning,
what was apparent was the nature of the vision adopted by the businesses. Traditional businesses
including retailing and transportation operations in this study focussed more on socially driven
visions, where the emphasis was on the social security of the owner. When they implemented
strategies they tended to adopt diversification in unrelated businesses, e.g., GRU 1 started by
retailing cement, then moved to transport, estate management, construction and is now gravitating
towards real estate. This was also the case with the other five SMEs classified as traditional
businesses. This provides evidence of some form of strategic planning and the selection of
particular strategic choices. Mboko and Hunter-Smith (2009) concede that SMEs’ planning tends to
be survivalist oriented, which is slightly different from the findings of this study which points to a
social security anchoring.
As noted by Mboko and Smith-Hunter (2009), they are driven by a short term focus. In the
majority of cases, the vision driven by the owners was directed at their own social security and had
very little to do with business development. As long as they were secure, they did very little to
reshape the organisation to respond to organisational challenges.
Their ability to secure the best talent on the market was handicapped by the lack of financial
resources. Therefore, they sought out people who would be loyal rather than focusing on quality
employees that met the requirements of strategy implementation. Relations, church members and
those recruited after serving as casual employees from time to time were in the majority.
Recruitment was therefore not driven by strategy implementation requirements, but by social
relationships. These employees rewarded the owner with support and allegiance rather than
commitment, but added little or no value to the organisation’s ability to pursue and implement
chosen strategies. This was the case with GRU 1. In order to buy loyalty, employees were forgiven
for serious offences; all the businesses acknowledged that forgiven employees were the most loyal.
For example, in the case of GRU 1, a driver damaged both the gearbox and engine of a low-bed

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truck while travelling at high speed and negotiating a very steep descent. The employee was quickly
forgiven for having been honest. At GRU 2, employees were promoted to become branch managers
without the necessary qualifications and experience. There were cases of large stock pilferage and
stock outs for fast moving articles. The managers involved were suspended for two months and
thereafter restored to their position or transferred to another branch. Both employers conceded that
these employees had become the most loyal. Furthermore, BYO 1 and HRE 3 stated that dismissals
were not in the best interests of SMEs.
Garengo and Bernadi (2007) found that employees were often managed in an unsystematic
manner by entrepreneurs, and individual performance and knowledge were seldom measured; when
they were, ad hoc systems were used. The current study confirmed these findings as all the
organisations lacked performance management and reward systems. The owners blamed this on a
lack of resources. Variyam and Kraybill (1993) argue that a planning strategy may yield higher
returns to firms that have higher endowments of human capital, and technology may bring higher
returns to firms belonging to a sector with a favourable technologies regime. Logic suggests that
human capital will have a powerful effect on strategy formulation and implementation. Firms with
higher levels of human capital have better command of technical information for implementing
strategies and such firms have higher allocative abilities and hence are more efficient in utilizing the
knowledge they acquire (Variyam and Kraybill, 1993).
Okumus (2003) stated that there is a need for training to enable employees and management to
improve their understanding and skills in the areas where changes are envisaged. According to
Okumus (2003), the key issues are:
• “The recruitment of relevant staff for the new strategy implementation.
• The acquisition and development of new skills and knowledge to implement the new
strategy.
• The types of training activities to develop and prepare managers and employees.
• The provision of incentives related to strategy implementation and their implications.
• The impact of company’s overall HRM policies and practices on implementing strategy.”

6. Conclusions and Recommendations

The major finding of this study was that the framework used by SMEs in Zimbabwe emphasized
both self and family survival. Although some form of growth was realised the organisations
exhibited significant unrealised potential. There appears to be a significant focus on inward
behaviour that focuses on relationships and family anchored business survival. Satisfying family
requirements in a way becomes the benchmark rather sustained organisational growth. This could
be a result of the structural weaknesses in the manner in which the SMEs were being managed
resulting in the overlooking of business focussed approaches to strategy implementation as outlined
for example by Okumus (2001).
Despite these apparent shortcomings, there is therefore need to test the applicability of this
model in a longitudinal study and whether it can be moderated to yield better organisational
performance.
SMEs need to deemphasize issues like employee loyalty and adopt a more professional business
approach and robust reward and recognition models. For SMEs’ growth there is need to balance the
business from an inward looking approach to include other important implementation variables.

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