Strategic Management Practices and Strategic Plans: An Empirical Analysis of Enterprise Approaches

As a continuous process, strategic management addresses the entrepreneurial dimension of organizations, organizational renewal and progress, and, in particular, developing and implementing strategies to create competitive advantages. This includes tracking and improving current programs and operations to ensure the strategic plan is on track. The outcomes of the nature and practice of the strategic management process are presented for a sample of 314 enterprises in Kosovo. The findings show that only 10.2% of Kosovan enterprises apply strategic management as a whole process, whereas 31.2% have five-year strategic plans. The results of the research showed that there is a significant relationship between the strategic management process and strategic tools. However, there is no significant relationship between strategic plans and strategic tools. We contribute theoretically by distinguishing written plans from active process engagement and by showing that process engagement, rather than mere plan possession, better predicts tool adoption in a transitional economy. This study thus provides important insights for those policymakers, practitioners, and academics looking to improve strategic management processes in similar environments.