EFFECT OF STRATEGIC MANAGEMENT PRACTICES ON BUSINESS GROWTH AND SUSTAINABILITY

Abstract

Strategic management practices (SMPs) have become essential drivers of business growth and long-term sustainability in volatile, technology-driven, and environmentally conscious markets. This review synthesizes theoretical foundations including the Resource-Based View (RBV), Dynamic Capabilities (DC), Stakeholder Theory, and Contingency Theory, while examining the core strategic management process of environmental analysis, strategy formulation, implementation, and evaluation. Empirical evidence demonstrates that systematic strategic planning, technology adoption, leadership commitment, and ESG integration significantly enhance financial performance (profitability, market share), operational efficiency, and resilience. In SMEs and larger firms alike, alignment of IT strategies with business objectives, corporate sustainability initiatives, and strategic human resource management (SHRM) practices foster innovation, stakeholder value, and adaptive capacity. The study highlights the critical need to balance short-term profitability with long-term sustainability goals, supported by global frameworks such as GRI, UN SDGs, and CSRD. Moderating factors including industry dynamics, cultural dimensions, and environmental uncertainty influence outcomes. Effective SMPs enable organizations to achieve sustained competitive advantage while contributing to ecological and social responsibility.