The impact of strategic orientation and networking on the sustainable performance of Small and Medium Business in Polokwane Municipality, Limpopo Province

Abstract

The main objective of this study was to investigate the impact of strategic orientation and networking on the sustainable performance of SMEs. A quantitative approach was used, and a self-administered questionnaire was employed during the data collection process. A four-section questionnaire covering demographic information, strategic orientation variables, networking variables and sustainable performance variables was prepared and distributed randomly to a selected sample of 300 SME owners in Polokwane Municipality in Limpopo Province. A total of 140 questionnaires were returned. The software used to analyse information gathered and to ensure accuracy and reliability of the study results was Statistical Package for Social Sciences (SPSS) version 26.0. Correlation and regression analyses were performed to determine the relationship between strategic orientation and sustainable performance, and the relationship between networking and sustainable performance. The Cronbach’s alpha was used as a measure of reliability. The results of the study revealed that both strategic orientation and networking positively impact on the performance of SMEs. Recommendations to improve the strategic orientation and networking of SMEs are suggested. These recommendations offered meaningful insights into SME owners, government, non-government organisations and other organisations for the improvement of their businesses while providing room for future research studies.