Do Strategic Management practices improve the performance of Small and Medium Enterprises (SMEs) in Sri Lanka?

Small and Medium Enterprises (SMEs) act as an engine of the economic growth of Sri Lanka, as it enables to eradicate poverty, resolve unemployment, rural development, and advancement of the technology. Hence, the performance of SMEs is vital for the accomplishment of sustainable economic growth of the country. Many scholars have argued that Strategic Management practices are one of the salient factor which contribute to the performance of SMEs. In this milieu, the main aim of this study is to investigate the relationship between Strategic Management practices and the performance of SMEs in Sri Lanka. Since there is very few studies have been conducted on this phenomenon in the Sri Lankan context, this research study enables to fulfill the empirical research gap in the existing body of literature. This study was inspired by the quantitative approach under the positivistic research paradigm. Data were collected through an online structured questionnaire distributed among the owners and managers of SMEs in Sri Lanka. Collected data were analyzed by using descriptive statistics and correlation. The findings of the study revealed that the performance of the SMEs in Sri Lanka is influenced by the Strategic Management practices: strategy formulation, implementation, and evaluvation. Thus, by implementing the Strategic Management practices, SMEs can improve their performance; market share, revenue, profits, and return on investments. The findings of the study pave the eye of owners, managers, trainee institutes, and policymakers on how Strategic management practices can be used to boost the performance of the SMEs in Sri Lanka.Small and Medium Enterprises (SMEs) act as an engine of the economic growth of Sri Lanka, as it enables to eradicate poverty, resolve unemployment, rural development, and advancement of the technology. Hence, the performance of SMEs is vital for the accomplishment of sustainable economic growth of the country. Many scholars have argued that Strategic Management practices are one of the salient factor which contribute to the performance of SMEs. In this milieu, the main aim of this study is to investigate the relationship between Strategic Management practices and the performance of SMEs in Sri Lanka. Since there is very few studies have been conducted on this phenomenon in the Sri Lankan context, this research study enables to fulfill the empirical research gap in the existing body of literature. This study was inspired by the quantitative approach under the positivistic research paradigm. Data were collected through an online structured questionnaire distributed among the owners and managers of SMEs in Sri Lanka. Collected data were analyzed by using descriptive statistics and correlation. The findings of the study revealed that the performance of the SMEs in Sri Lanka is influenced by the Strategic Management practices: strategy formulation, implementation, and evaluvation. Thus, by implementing the Strategic Management practices, SMEs can improve their performance; market share, revenue, profits, and return on investments. The findings of the study pave the eye of owners, managers, trainee institutes, and policymakers on how Strategic management practices can be used to boost the performance of the SMEs in Sri Lanka