Impact of organizational culture on strategic planning

Abstract

PurposeThe purpose of this paper is to examine the impact of organizational culture on strategic planning and the role of leadership effectiveness in the association between organizational culture and strategic planning in Indian nonprofit organizations (NPOs).Design/methodology/approachData were collected from 441 respondents using a structured questionnaire. Common method bias was addressed through the use of multiple surveys. Structural equation modeling was used to process the data.FindingsAdvice-seeking interactions, collaborative culture and an error management culture positively impacted the creation and conceptualization of strategic plans in Indian NPOs. An error aversion culture did not significantly impact the creation and conceptualization of strategic plans. Leadership effectiveness moderated the relationship between “advice-seeking interactions” and the “creation and conceptualization” of the strategic plan, a “collaborative culture” and the “creation and conceptualization” of the strategic plan and an “error management culture” and the “creation and conceptualization” of the strategic plan.Originality/valueStrategic management literature on the determinants of the creation and conceptualization of strategic plans is scant. Further, it does not include the influence of cultural constructs such as advice-seeking interaction (ASI), collaborative culture (CC), error management culture (EMC), error aversion culture (EAC) on the creation and conceptualization of strategic plans. This study extends the debate on the culture–strategy nexus to help practitioners understand the importance of organizational culture (advice-seeking interaction, collaborative culture, error management culture, error aversion culture) in creating strategic plans.

Strategic perspective of error management, the role of leadership, and an error management culture: a mediation model

“…Culture takes on a deep meaning for error management in organizations (Reason, 2000) and can act as an influencing variable (van Dyck et al, 2005). Different aspects of organizational culture can have significant implications for the error management process (Gelfand et al, 2011;G€ okt€ urk et al, 2017;Wang et al, 2020;Panda, 2022;Deng et al, 2022;Matthews et al, 2022). Thus, an error management approach will be easier if there is a strong organizational culture with practices, procedures, norms and values conducive to error management.…”

“…Edmondson (2004) and Rochlin (1999) argue that there is a cultural dimension to how organizations deal with mistakes. In this sense, an error management culture can be of central importance for companies considering following an error management strategy (Wang et al, 2018(Wang et al, , 2020Deng et al, 2022;Panda, 2022).…”

“…The literature shows that all organizations have a culture that establishes a set of norms and values, as well as practices and procedures, which lead to behaviours shared by its members (Schein, 2004; House et al. , 2004; Panda, 2022). Organizational culture is the sum of all shared and correct certainties that a group has or will possess (learning) throughout its history.…”

“…In this sense, an error management culture can be of central importance for companies considering following an error management strategy (Wang et al ., 2018, 2020; Deng et al. , 2022; Panda, 2022).…”

Strategic Planning Pitfalls in Society 5.0: A Systematic Literature Review

“…In the following years, strategic planning has been out of flavor as a mainstream and dominant methodology (Carter, 1999), still the theme was subject of conversation throughout the times and recently discuss by managers or scholars such as Sax (2020), Panda (2021), Kaushik (2021), Al-Dhaafri (2021) as a method that can contribute to changing environment and interact with other development areas.…”