The impact of grand strategy and planning formality on financial performance

An empirical study involving 97 manufacturing firms that averaged $20 million in annual sales yielded a strong positive correlation between the degree of planning formality and firm performance. Additionally, interactive analysis disclosed that this relationship pervaded various grand strategies; th...

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Bibliographic Details
Published in:Strategic management journal 1987-03, Vol.8 (2), p.125-134
Main Authors: Pearce, John A., Robbins, D. Keith, Robinson, Richard B.
Format: Article
Language:English
Subjects:
Applied sciences
Business structures
Chief executive officers
Classification schemes
Corporate planning
Corporate strategies
Economic indicators
Exact sciences and technology
Financial management
Financial planning
Firm modelling
Formal organization
Horizontal integration
Hypotheses
Literature reviews
Operational research and scientific management
Operational research. Management science
Performance management
Polls & surveys
Processes
Product development
Profit planning
Questionnaires
Research methodology
Sales growth
Strategic management
Strategic planning
Studies
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Summary:An empirical study involving 97 manufacturing firms that averaged $20 million in annual sales yielded a strong positive correlation between the degree of planning formality and firm performance. Additionally, interactive analysis disclosed that this relationship pervaded various grand strategies; the implication being that formalized strategic planning was consistently a positive factor associated with high levels of organizational performance.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.4250080204