Perceptions on business strategy of small and medium-sized enterprises

Abstract

The purpose of this article is to examine how the perceptions of employees could have an influence in business strategy.

The problem statement and main research question is: How can employees’ perceptions influence the outcome of business strategy of SMEs in Lao PDR?

This article critically reviews the literature pertaining to perceptions and attitudes. Perception involves a sophisticated thinking process, from obtaining data from the external environment, analysing, and converting it through the cognitive process. People’s perceptions of reality have great influence on their behaviour.

The significance of this article is: SMEs in Lao PDR can develop better understanding about the influence of employees’ perceptions on the outcome of business strategy.

The findings show strong evidence that supports the relationship between employees’ perceptions about strategy and business performance ; employees who had some interest in business strategy accounted for 37%, those with a moderate interest in strategy, 42%, and those very interested in strategy at 16%. Some recommendations are given at the end of the article before the conclusions section.