Adnan Mohammed Al-Absi

Type of the article: Research Article

Abstract
This study investigates the interrelationships between strategic planning, strategic flexibility, and competitive advantage in private Yemeni cement companies. It specifically analyzes direct and indirect effects of strategic planning on competitive advantage through strategic flexibility. Data were collected via a questionnaire distributed to 452 managerial and specialist employees in three companies in January 2024 and analyzed using structural equation modeling with SmartPLS3. The findings indicate that strategic planning has a significant direct effect on competitive advantage (β = 0.031–0.227, p < 0.001) through strategic environmental analysis, strategic plan formulation, and strategic plan implementation. Strategic planning also significantly influences strategic flexibility (β = 0.100–0.360, p < 0.001) across all its dimensions. Strategic plan implementation emerges as the most influential on both competitive advantage (β = 0.227, p < 0.001) and strategic flexibility (β = 0.360, p < 0.001). Strategic flexibility directly affects competitive advantage (β = 0.391–0.454, p < 0.001) through the market flexibility, human capital flexibility, and production flexibility, among which production flexibility was the most influential dimension (β = 0.454, p < 0.001). All strategic planning dimensions exert significant indirect effects on competitive advantage mediated by strategic flexibility. The mediation was partial for strategic environmental analysis, strategic plan formulation, and strategic plan implementation (β = 0.050–0.181, p < 0.001), and full for strategic orientation (β = 0.115, p < 0.001). These findings provide managers with evidence-based strategic insights for navigating instability, underscoring that the synergy between planning and flexibility is paramount for achieving a sustainable competitive position in volatile markets.