Strategic Planning and Firm Performance: A Synthesis of More Than Two Decades of Research

Miller, C. Chet; Cardinal, Laura B.

doi:10.5465/256804

Cited by 273 publications

(384 citation statements)

References 45 publications

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“…Within those parameters, a consensus is apparent among researchers on this topic. This consensus is of a small but significant correlation between planning and performance, 29 that substantive external contingencies have little impact 30 and that more sophisticated methodologies have produced stronger links than earlier work. 31 Further, this work makes clear that the advantages of strategic planning are not only financial but lie also in less tangible 'process' benefits.…”

Section: Introductionmentioning

confidence: 98%

The effectiveness of marketing strategy making processes: A critical literature review and a research agenda

Smith¹

2003

J Target Meas Anal Mark

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commonly employed non-rational processes of strategy making -that the content of strong marketing strategies is, to a useful degree, well defined by the extant literature. This content definition is useful in evaluating the outputs of marketing strategy making processes and offers a valuable alternative to attempting to correlate strategy making process with organisational outputs -the normative, prescriptive models of strategic marketing planning are not an accurate description of most practice. This suggests that, for many practitioners, the practical application of the process falls some way short of the ideal -the effectiveness of normative strategic marketing planning is contingent upon both internal and external factors, both of which are limited in INTRODUCTIONStrong marketing strategies are clearly important to the effectiveness of an organisation and so the effectiveness of marketing strategy making processes is an important consideration for both academics and practitioners. Various approaches have been made towards understanding and improving such processes. This paper attempts to synthesise these perspectives to create a more rounded and deeper understanding of how marketing strategies are made and how they might be improved. In short, the findings of this work suggest:-that rational planning processes contribute to organisational effectiveness. No reported methodology, however, is able to say more than that, and relatively little is known about the value of the more Abstract This paper contributes to the literature concerning the marketing strategy process. It reviews the extant literature in this field, drawing out areas of consensus and gaps in that literature. The principal gaps identified concern non-rational strategy making processes and the combined implications of internal and external contingencies. Using well-established theories from the sociological perspective of the organisational behaviour literature, this work proposes relevant questions for future research in this field. [16][17][18][19] This phase of research therefore concluded that the planning/performance link was in fact unproved. Further, it suggested that such a simple correlation would never be possible. Instead, the consensus of this work was that, at best, planning is only effective within a certain set of contingent conditions and that effectiveness itself was a complex construct, dependent upon the organisation's goals and situation. The third and most recent phase of this work suggests a position somewhere between the unbridled positivism of the first and the inconclusive relativism of the second. Partly, this work paralleled the development of ideas about measuring organisational performance. [20][21][22][23] Further, it reflected more sophisticated work that attempted to allow for the many contingent effects on effectiveness. [24][25][26][27][28] This work therefore considers the performance/planning link within the limits of environmental contingencies and the context of organisation specific objectives. Within those...

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Section: Introductionmentioning

confidence: 98%

The effectiveness of marketing strategy making processes: A critical literature review and a research agenda

Smith¹

2003

J Target Meas Anal Mark

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“…These inconsistencies have even led some writers to reject formal planning as the 'one' best way to plan (Mintzberg, 1994). One of the arguments presented about these findings in the strategy performance relationship was the neglect of strategy implementation (Miller and Cardinal, 1994;Brews and Hunt, 1999;Phillips and Moutinho, 2000;Hrebiniak, 2005Hrebiniak, , 2006Whittington and Cailluet, 2008). This trend is still observed in more recent publications on strategy management and strategy processes (Belmondo and Sargis-Roussel, 2015;Paroutis et al, 2015;Thomas and Ambrosini, 2015) where papers tend to examine strategy formation and strategy development, rather than its implementation.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Innovation and sustainability in a large-scale healthcare improvement collaborative - seven propositions for achieving system-wide innovation and sustainability

Amoo

Malby

Mervyn

2016

IJSSM

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Change and reform in the healthcare system, and policy determination to reduce costs has now necessitated a rethink and more innovation for this sector. Leadership needs to strengthen professionals who have the dual responsibility for ensuring the quality and effectiveness of healthcare and this requires new organisational forms beyond the traditional hierarchical structures. Drawing upon strategic management and leadership discourse to underpin the study into sustainable and high performing healthcare systems, we present seven key lessons (propositions) from a mixed-methods study of a city-wide collaboratives in Leeds, UK. Our study suggested that the sustainability of such collaboratives, requires a more effective structure that could be local city-wide collaborative in contrast to national/regional collaboratives. However, there are also several unknowns in such novel organisational structures. The study also finds that both an energetic strategic leader and promotion of professional learning cultures are vital for the sustainability of such collaboratives.

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“…Ramanujan, Venkatraman and Camillus (1986) found that a key effect of formal planning is that it alters specific elements of the overall strategic decision process hence associated with adopting key steps in decision process. For Miller and Cardinal (1994), planning was found to strongly and positively relate to growth in studies in which industry effect were controlled, an informant source of performance data was used, planning was defined as not requiring written documentation and the quality of assessment strategy was high while explicit strategies are dysfunctional as they channel attention and behavior to specific plans thereby driving out important innovations and creativity. Boyne et al, (2003) observes that planning is believed to lead to positive organizational outcome due to the clarity of objectives, provision of framework to allocate resources and communication to all staff.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Strategic Planning Process Intensity and Formality Impact on the Performance of Accredited Universities in Kenya

Kabui¹,

Machuki²,

Yabs³

et al. 2018

IJBM

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This study sought to investigate if the strategic planning process has significant influence on the performance of accredited universities in Kenya. Beyond the strategic plan document, the intensity and formality with which the process of strategic planning is carried out, its extensiveness and inclusiveness, is a concern for organizations in the twenty first century. Performance of accredited universities was conceptualized into growth and ranking as guided by the world standard for performance of tertiary institution. The study is anchored on the institutional theory and contingency theory. This study is founded on the positivist philosophical orientation as it is founded on theory and it adopted a descriptive cross sectional survey design. The population of interest was all accredited universities in Kenya as at November 2016. The findings indicate a statistically significant direct relationship between strategic planning process and growth (F=2.605, p=0.047 and R 2 =.303) and with ranking (F=1.995, p=0.033 and R 2 =0.218). Engaging university stakeholders in the strategic planning process and focusing the energies of members on the seven key variables of the strategic planning process should be encouraged and enhanced while engaging in a strategic planning process that is formal, this is in an effort to ensure that formality is balanced with allowing room for creativity and avoid missing out on innovative approaches from members. Further research in to other industries with different performance measures and the use of longitudinal design are possible areas for further research to enhance generalization of current findings.

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Strategic Planning and Firm Performance: A Synthesis of More Than Two Decades of Research

Cited by 273 publications

References 45 publications

The effectiveness of marketing strategy making processes: A critical literature review and a research agenda

The effectiveness of marketing strategy making processes: A critical literature review and a research agenda

Innovation and sustainability in a large-scale healthcare improvement collaborative - seven propositions for achieving system-wide innovation and sustainability

Strategic Planning Process Intensity and Formality Impact on the Performance of Accredited Universities in Kenya

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