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The Role of Strategic Planning and Organisational Competence on Performance: Evidence from Social Enterprise

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This study examines the relationship between organisational competence, strategic planning, and organisational performance in Malaysian social enterprises. It focuses on the mediating role of organisational competence in linking strategic planning to performance outcomes and explores how competencies differ in impact between service and non-service sectors. This study employed Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine data collected from 108 Malaysian social enterprises registered as Company Limited by Guarantee (CLBG). Results indicate that strategic planning does not directly impact organisational performance, while organisational competence has a positive effect of direct and mediates the relationship between strategic planning and performance. The sector moderates the relationship between organisational competence and performance, although the effect is nonsignificant. This study is limited by its small sample size and reliance on self-reported questionnaire data, which may introduce bias and limit generalisability. Social enterprises should enhance organisational competence to better align strategic planning with performance objectives, particularly in leveraging new technologies and external knowledge. This paper addresses gaps in the literature by examining the mediating role of organisational competence between strategic planning and performance. It also provides sectoral insights, highlighting how competencies’ influence on performance varies between service and non-service sectors.
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