A causal analysis of formal strategic planning and firm performance: evidence from an emerging country

Keith Glaister, Omer Dincer, Ekrem Tatoglu, Mehmet Demirbag, Selim Zaim

    Research output: Contribution to journalArticle

    50 Citations (Scopus)

    Abstract

    The purpose of this paper is to examine the nature of the strategic planning-performance relationship by drawing on data from a sample of Turkish firms. The sample frame for the study was derived from the database of the Istanbul Chamber of Industry's 500 largest Turkish manufacturing companies and the database of companies quoted on the Istanbul Stock Exchange. Based on a postal survey, 135 usable questionnaires were returned. Using LISREL causal modeling the moderating effects of a set of contingency factors on the relationship between formal strategic planning and firm performance were investigated. The findings show that there is a good deal of support for the study's hypotheses. A strong and positive relationship was formed between formal strategic planning and firm performance, which tends to confirm the arguments of the prescriptive strategic management literature. The test results also verify the moderating roles of environmental turbulence, organization structure and firm size on the strategic planning-performance link. Strategic planning and its key dimensions represent a subtle and complex activity, and that to obtain rich data on such phenomena may be best accomplished through research methods that employ qualitative data gathering techniques. Incorporation of qualitative performance measures, in addition to financial measures would enrich our understanding of the planning-performance relationship. After almost a decade of relative neglect perhaps this research issue will again begin to attract the kind of attention that it deserves. Although strategy is often considered to be a universal practice, it is better thought of as many different crafts, varying according to its different contexts. So, the impact of various contexts on the planning-performance relationship should be taken into account. Prior studies that have examined strategic planning-performance relationship have tended to focus on firms from industrialized countries. This is one of the first studies that has explicitly modeled and empirically tested the relationship in an emerging country context.
    LanguageEnglish
    Pages365-391
    Number of pages27
    JournalManagement Decision
    Volume46
    Issue number3
    DOIs
    Publication statusPublished - 2008

    Fingerprint

    Strategic planning
    Firm performance
    Emerging countries
    Data base
    Planning
    Performance measures
    Research issues
    Developed countries
    Istanbul stock exchange
    Manufacturing companies
    Organization structure
    Firm size
    Strategic management
    Financial measures
    Contingency factors
    Neglect
    Research methods
    Qualitative data
    Causal modeling
    Environmental turbulence

    Keywords

    • company performance
    • emerging markets
    • strategy planning
    • Turkey

    Cite this

    Glaister, Keith ; Dincer, Omer ; Tatoglu, Ekrem ; Demirbag, Mehmet ; Zaim, Selim. / A causal analysis of formal strategic planning and firm performance : evidence from an emerging country. In: Management Decision. 2008 ; Vol. 46, No. 3. pp. 365-391.
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    A causal analysis of formal strategic planning and firm performance : evidence from an emerging country. / Glaister, Keith; Dincer, Omer; Tatoglu, Ekrem; Demirbag, Mehmet; Zaim, Selim.

    In: Management Decision, Vol. 46, No. 3, 2008, p. 365-391.

    Research output: Contribution to journalArticle

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