From strategy to success: the path to financial resilience through strategic foresight in mining SMEs

Abstract

This study examines the influence of strategic foresight on the financial performance of small and medium-sized firms (SMEs) within the mining sector of South Africa's Eastern Limb. It examines the roles of scenario planning, external environmental assessment, and organisational culture in fostering financial resilience and competitive advantage. The research utilises a quantitative methodology, employing survey data gathered from 310 participants, comprising firm owners, managers, and employees within mining SMEs. The study employs linear regression analysis to evaluate the correlations between strategic foresight activities and financial performance metrics, including revenue growth, profitability, and return on investment (ROI). Reliability was established via Cronbach’s alpha (exceeding 0.9 for all constructs), while validity was assessed using Pearson correlation coefficients. The findings demonstrate that all three elements of strategic foresight—scenario planning, external environmental scanning, and organisational culture—exhibit a substantial and favourable correlation with financial success in mining SMEs. The investigation indicates that SMEs with strong strategic foresight systems are more adept at risk mitigation, regulatory adaptation, and maintaining financial growth. The research highlights the essential function of strategic foresight in improving financial resilience and stability in mining-focused SMEs. Companies that actively participate in scenario planning and environmental monitoring while fostering a robust organisational culture are more likely to adeptly manage market uncertainty. The findings provide guidance to SME leaders, policymakers, and researchers on incorporating foresight-driven strategies for enduring sustainability and financial prosperity.

Keywords: {'name': 'strategic foresight'}, {'name': 'financial performance'}, {'name': "SME's"}, {'name': 'Mining sector'}, {'name': 'scenario planning'}, {'name': 'external environmentalscanning'}

Authors & affiliations

Nomkhosi Radebe
Affiliation not supplied

Ramaano Sefora
Affiliation not supplied

Celas Nthonifheni Nemaduvhetshewe
Affiliation not supplied

Mikhaeel Karbelkar
Affiliation not supplied

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