Comprehension of the Application of Mckinsey’s 7s Model by Women in SMEs in Ghana; the Mediating Role of Commitment

Abstract

One of the issues facing SMEs is how to align the internal structures of the organization to improve performance. This study seeks to investigate how SMEs apply the Mckinsey’s 7s framework to align together to improve performance. The study further examines the role of employee commitment on McKinsey’s 7s to performance. The study employed causal and descriptive research design with a sample size of 378 women entrepreneurs in SMEs in Ghana selected through purposive sampling method. Quantitative data were collected from participants through surveys with the use of questionnaire. Data were analysed by employing structural equation modelling (SEM) supported by AMOS 23.0 with maximum likelihood estimation to test the formulated hypotheses. The mediation analysis was done via bootstrapping through AMOS. The findings showed that the application of Mckinsey’s 7S has a positive contribution to performance of SMEs. The study further revealed that 4 out of the 7 variables have direct, statistically, and significant influence on employee commitment. The variables include strategy; structures; skills and shared value. The other 3 variables that shown insignificant relationship with employee commitment were Systems, staff and style. Also, the results of the mediating variable suggests that employee commitment has no direct influence on performance results outcome and the hypothesis is not supporting but indicated inverse relationship.