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The role of strategic planning in the performance of small, professional service firms A research note

The role of strategic planning in the performance of small, professional service firms A research... Using a sample of small, regional professional service firms, this paper investigates relationships between firm performance and aspects of strategic planning. Constructs measuring vision, mission, latent abilities, competitor orientation and market orientation are identified using exploratory factor analysis and respondents categorised as non‐planners, informal planners, formal planners and sophisticated planners. Multiple performance measures were used to assess the relationship between these factors and categories and firm performance. While no significant relationship between the performance measures and factors is identified, a significant relationship between net profit and informal planning emerges. These mixed results bring into question the value of the classical strategic planning process as a means of achieving a sustainable competitive advantage in the market analysed. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management Development Emerald Publishing

The role of strategic planning in the performance of small, professional service firms A research note

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0262-1711
DOI
10.1108/02621710410549611
Publisher site
See Article on Publisher Site

Abstract

Using a sample of small, regional professional service firms, this paper investigates relationships between firm performance and aspects of strategic planning. Constructs measuring vision, mission, latent abilities, competitor orientation and market orientation are identified using exploratory factor analysis and respondents categorised as non‐planners, informal planners, formal planners and sophisticated planners. Multiple performance measures were used to assess the relationship between these factors and categories and firm performance. While no significant relationship between the performance measures and factors is identified, a significant relationship between net profit and informal planning emerges. These mixed results bring into question the value of the classical strategic planning process as a means of achieving a sustainable competitive advantage in the market analysed.

Journal

Journal of Management DevelopmentEmerald Publishing

Published: Sep 1, 2004

Keywords: Strategic planning; Professional services; Australia; Small to medium‐sized enterprises

References