Integrating Strategic Management and Financial Innovation A Study on How Administrative Efficiency Drives Sustainable Business Growth in Emerging Economies

Abstract

Background In the developing world, the sustainable development of business is being shaped by a strategic union of administrative competency, financial creativity and long-range planning. Although strategic management and financial analyses are established areas of research, their intersection via administrative effectiveness remains an under researched phenomenon in dynamic market environments.

Objective: The objective of this research is to examine the mediating effect of administrative efficiency on the relationship among strategic management, financial innovation, and sustainable business growth in developing countries.

Method: A mixed methodology was used with a cross-sectional survey (n = 384) and qualitative interviews (n = 25) with senior managers and decision-makers in diverse business activities in emerging markets. Analytical technique Structural Equation Modeling (SEM) was employed for examining relationships among variables using STATA v.14 while thematic analysis was used to explore manager's insights and practical constraints.

Results: The results show that administrative efficiency mediates the significant effect of strategic management (β = 0.16) and financial innovation (β = 0.14) on sustainable growth. Administrative efficiency presented the most direct effect on growth (β = 0.42) and it was thus the central node. The qualitative results verified that lack of bureaucracy, training lapse and governance negatively influence strategic-financial integration while good administrative system would facilitate the implementation and flexibility.

Conclusion / Implication: Administrative efficiency emerged as a critical facilitator of sustainable development in emerging economies – the "operational conduit" between strategic aspirations and financial transformation. “The need that we have is for organizations to invest in their administrative infrastructure so that they can be more efficient, more adaptive, and more strategic in order to be competitive over the long run.”