Strategic planning, scanning activities and the financial performance of small firms

1994 ◽  
Vol 3 (1) ◽  
pp. 45-55 ◽  
Author(s):  
Christopher Orpen
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Small Firms

scholarly journals Strategic Planning Emphasis and Planning Satisfaction in Small Firms: An Empirical Investigation

1970 ◽  
Vol 13 (1) ◽  
pp. 1-20
Author(s):  
Javad Kargar ◽  
John Parnell
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Small Firms ◽  
Empirical Investigation ◽  
Empirical Studies ◽  
Two Dimensions ◽  
Alternative Perspective

Most empirical studies examining strategic planning effectiveness have focused on its impact on financial performance. However, solid empirically-based conclusions concerning the usefulness of strategic planning have not yet emerged. The present study takes an alternative perspective, examining two dimensions of executive satisfaction with strategic planning. Results support a link between seven strategic planning characteristics and planning satisfaction among small firms.

Effects of Formal Strategic Planning on Financial Performance in Small Firms: A Meta-Analysis

1993 ◽  
Vol 17 (3) ◽  
pp. 53-64 ◽  
Author(s):  
Charles R. Schwenk ◽  
Charles B. Shrader
Keyword(s):  
Firm Performance ◽  
Strategic Planning ◽  
Financial Performance ◽  
Small Firm ◽  
Small Firms ◽  
Sampling Error ◽  
Meta Analysis ◽  
Firm Financial Performance ◽  
And Performance ◽  
First Time

Researchers have been examining the effects of formal strategic planning on small firm financial performance for more than twenty years. Reviewers of prior studies have drawn differing conclusions as to whether formal planning improves small firm performance. We have applied meta-analysis for the first time to the results of previous studies on formal strategic planning and small firm performance. The results suggest that even though the size of the effects for planning for individual studies Is not large, the overall relationship between formal planning and performance across studies Is positive and significant. Much of the variance in the size of the effects, however, Is not explained by sampling error, Indicating the potential for other variables to moderate the effects of planning on the performance of small firms. It is concluded, in general, that strategic planning is a beneficial activity for small firms.

Is Strategic Planning Worth the Effort? A Study of Firm Performance Versus Planning Comprehensiveness in Australia

2000 ◽  
Vol 6 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Peter Devenish ◽  
Tom Fisher
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Statistical Tests ◽  
The United States ◽  
Negative Finding ◽  
Positive Correlation ◽  
Listed Firms ◽  
The United Kingdom ◽  
Weak Positive Correlation ◽  
Positive Correlations

AbstractThe planning-performance literature suggests that there is a weak positive correlation between strategic planning and financial performance. This study has been undertaken to determine whether this weak positive correlation is true for Australian firms.Strategic planning for the purposes of this study is arranged in three levels of planning complexity. A sample of 77 listed firms was surveyed to determine their level of planning complexity, and this was correlated with the firm's financial performance over a three year period.A range of statistical tests did not reveal any significant correlation between strategic planning at any of the three levels and the financial performance of the firm. This negative finding is generally in line with other recent studies conducted in Australia, the United States and the United Kingdom.However, positive correlations were found with several subjective performance measures, suggesting that respondents generally believe that strategic planning is helping their company.

Performance risk factors in SME strategic planning

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Emerging Market ◽  
Negative Influence ◽  
Positive Influence ◽  
Content Type ◽  
Political Ties ◽  
Pertinent Information ◽  
Internal Stakeholders ◽  
Business Ties

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the links between SME financial performance, business ties, and political ties. Business ties were revealed to be the fundamental microfoundations of formal strategic planning (FSP), by significantly boosting firms' financial performance. However, political ties were revealed to be something to avoid, in emerging market like Turkey, due to their distracting negative influence of firm performance. SMEs can overcome some of the disadvantages of their size by involving positive influence external parties in strategic work, to support internal stakeholders. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Do Brands Matter in Unlisted Firms? An Empirical Study of the Association between Brand Equity and Financial Performance

2018 ◽  
Vol 8 (4) ◽  
pp. 65
Author(s):  
Anne Schmitz ◽  
Nieves Villaseñor-Román
Keyword(s):  
Strategic Planning ◽  
Empirical Study ◽  
Financial Performance ◽  
Brand Equity ◽  
Brand Management ◽  
Earnings Persistence ◽  
Financial Indicators ◽  
Future Earnings ◽  
Measures Of Performance ◽  
Unlisted Firms

In spite of the importance of the brand management in marketing studies and practice, there is a scarcity of prior research on the links between brand equity and financial performance, particularly in unlisted (unquoted) firms. The study contributes to prior research along a number of dimensions. It provides evidence on the relevance of brands for unlisted firms of several industries, by showing that brand equity is associated with financial performance even in non-quoted firms without world-recognized brands. Second, the study analyzes the association between brands and accounting-based measures of performance, across different windows and financial indicators. Finally, the evidence on earnings persistence is particularly relevant, as it potentially sheds light on the existing debate on the association between brand equity and stock markets. To the extent that firms with greater brand equity have more persistent earnings, current earnings contain greater information about future earnings, which show the relevance of brand management in the strategic planning of unlisted firms.

scholarly journals The relationship between corporate governance and financial performance of small corporations in Australia

2014 ◽  
Vol 9 (2) ◽  
Author(s):  
Yongqiang Li ◽  
Anona Armstrong ◽  
Andrew Clarke
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Structural Equation ◽  
Small Firms ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Latent Constructs ◽  
Equation Modelling ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This paper examines a widely explored but yet to be confirmed relationship between two latent constructs - corporate governance and financial performance of small corporations in Australia. Prior studies have either focused on larger organisations or isolated corporate governance mechanisms in small firms. However, few have examined how corporate governance mechanisms, as a bundle, relate to small corporations. This study fills this gap by empirically analysing the aforementioned relationship using Structural Equation Modelling (SEM). Based on 387 responses from small corporations, the results show that corporate governance bundles measured by the extant literature, has a negative impact on the financial performance of small corporations. The result calls for a stakeholder approach to the governance needs of small corporations.

Organizational Characteristics and Small Firms’ Performance Revisited

1989 ◽  
Vol 13 (2) ◽  
pp. 49-64 ◽  
Author(s):  
Paul B. Cragg ◽  
Malcolm King
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Small Firm ◽  
Small Firms ◽  
Causal Model ◽  
Organizational Characteristics ◽  
Future Research ◽  
Firm Financial Performance ◽  
Mixed Support ◽  
Research Studies

Numerous studies have attempted to gain a greater understanding of small firm performance with the intent of isolating factors which are important for success. The studies, some with serious limitations, suggest that many different variables are Important to success. A further study of 179 small, metal goods manufacturers enabled some of the specific relationships to be re-examined, but with mixed support for previous findings. Various suggestions are made for future research studies. A causal model of small firm financial performance is proposed.

Further Evidence on the Extent and Origins of JIT's Profitability Effects

2002 ◽  
Vol 77 (1) ◽  
pp. 203-225 ◽  
Author(s):  
Michael R. Kinney ◽  
William F. Wempe
Keyword(s):  
Financial Performance ◽  
Empirical Research ◽  
Firm Size ◽  
Small Firms ◽  
Primary Source ◽  
Profit Margin ◽  
Just In Time ◽  
Asset Turnover ◽  
Size Threshold ◽  
Industry Peers

Empirical research provides scant evidence that just-in-time (JIT) adopters outperform their non-adopting industry peers. Using a sample of 201 JIT adopters and matched non-adopters, we examine the relation between financial performance and JIT. Our sample-wide results indicate that JIT adopters improve financial performance relative to non-adopters, and that profit margin, rather than asset turnover, is the primary source of such improvement. However, results of additional analyses suggest that JIT adopters below a firm-size threshold do not improve financial performance, a finding that reconciles our study to Balakrishnan et al. (1996), which examined a JIT adopter sample that included a greater proportion of small firms.

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