MODERATING EFFECT OF GOVERNMENT REGULATIONS ON THE RELATIONSHIP BETWEEN STRATEGIC PLANNING PRACTICES AND FINANCIAL PERFORMANCES OF SMEs IN JUBA, SOUTH SUDAN

Abstract

Strategic planning practices and financial performance are key areas of study because of the critical role they play in the structured development of any economy. The worldwide recognition of this fact places this topic of study at the forefront of acclaimed researchers and development experts. The main drive of this research was to establish the moderating effect of government regulations on the relationship between strategic planning practices and financial performances of SME’s in Juba South Sudan. This research was guided by three major theories: Strategic Fit Theory, Porter’s Competitive Advantage Theory and Institutional Theory. This study used a Cross-Section Survey. The target population consists of 4,951 small and medium enterprises founded in Juba, South Sudan. The study used the questionnaires to get information from the SME’s. The pilot study was conducted in Tereka County outside Juba and it consisted of 41 respondents. The study used both descriptive statistics and inferential statistics to analyse the data aided by Statistical Package for Social Sciences computer software. Descriptive statistics included mean, frequencies and standard deviations. Inferential statistics involved regression and correlation analyses. Findings illustrated that Government Regulations had no significant moderation effect on the relationship between strategic planning practices and the financial performance and between strategic formulation practices and the financial performance among the SMEs in Juba, South Sudan. It should be noted that Government Regulations had significant moderation effect on the relationship between strategic evaluation practices and the financial performance among the SME’S in Juba, South Sudan. It was concluded that when the government regulations are less stringent towards the SME’S operations in Juba, South Sudan, then the slope (effect = 0.454, p-value= 0.000) is significant and higher compared when the regulations are moderately stringent (effect= 0320, p-value = 0.000) or highly stringent (effect= 0.186, p-value = 0.120). It was recommended that strategic planning should take the hybrid approach to rework performance through strategic planning practices. According to the results, small and medium enterprises in Juba, South Sudan should continue to use structured strategic planning practices and financial performance to increase their effectiveness and productivity, as well as market performance.

Keyword:  Government Regulations, Strategic Planning Practices and Financial Performances of SME’s, Juba, South Sudan