The literature addressing the empirical relationships between strategic planning and hard measures of organizational performance is examined. Distinctions are drawn among formal strategic planning; strategic planning content; and research linking strategic planning, environment, and organizational performance. Implications of the extant research and recommendations for future research are offered for theorists and practitioners alike.
Get full access to this article
View all access options for this article.
References
1.
Aldrich, H.E. (1979). Organizations and environments. Englewood Cliffs, NJ: Prentice-Hall.
2.
Andrews, K.R. (1980). The concept of corporate strategy. Homewood, IL: Irwin.
3.
Ansoff, H.I. (1965). Corporate strategy: An analytic approach to business policy for growth and expansion. New York: McGraw-Hill.
4.
Ansoff, H.I., Avner, J., Brandenburg, R.G., Portner, F.E., & Radosevich, R. (1970). Does planning pay? The effect of planning on success of acquisitions in American firms. Long Range Planning, 3, 1-7.
5.
Aplin, J.C., & Cosier, R.A. (1980, Spring). Managing creative and maintenance organizations. Business Quarterly, 56-63.
6.
Arndt, J. (1977). Exploring the relationships between market structure and performance in retailing. In H.B. Thorelli (Ed.), Strategy + structure = performance (pp. 237-248). Bloomington, IN: Indiana University Press.
7.
Baker, A.D., & Thompson, G.C. (1956). Long range planning pays off. Conference Board Business Record, 8, 435-443.
8.
Beard, D.W., & Dess, G.C. (1981). Corporate-level strategy, business-level strategy, and firm performance. Academy of Management Journal, 24, 663-688.
9.
Bobbitt, H.R., Jr., & Ford, J.D. (1980). Decision-maker choice as a determinant of organization structure. Academy of Management Review, 5, 13-24.
10.
Bourgeois, L.J. (1978). Strategy making, environment, and economic performance: A conceptual and empirical exploration. Unpublished doctoral dissertation, University of Washington, Seattle.
11.
Bowman, E.H. (1978). Strategy, annual reports, and alchemy. California Management Review, 20, 64-71.
12.
Box, G.E.P., & Jenkins, G.M. (1976). Time series analysis: Forecasting and control. San Francisco: Holden-Day.
13.
Bresser, R.K., & Bishop, R.C. (1983). Dysfunctional effects of formal planning: Two theoretical explanations. Academy of Management Review, 8, 588-599.
14.
Burt, D.N. (1978). Planning and performance in Australian retailing. Long Range Planning, 2, 62-66.
15.
Buzzell, R.D., & Farris, P.W. (1977). Marketing costs in consumer goods industries. In H.B. Thorelli (Ed.), Strategy + structure = performance (pp. 122-145). Bloomington, IN: Indiana University Press.
16.
Chakravarthy, B.S. (1982). Adaptation: A promising metaphor for strategic management. Academy of Management Review, 7, 35-44.
17.
Chandler, A.D. (1962). Strategy and structure: Chapters in the history of the American industrial enterprise. Cambridge, MA: MIT Press.
18.
Channon, D.F. (1973). The strategy and structure of British enterprise. Boston: Harvard University Graduate School of Business Administration, Division of Research.
19.
Child, J. (1972). Organizational structure, environment and performance: The role of strategic choice. Sociology, 6, 1-22.
20.
Child, J. (1974). Managerial and organizational factors associated with company performance-Part I. Journal of Management Studies, 11, 175-189.
21.
Child, J. (1975). Managerial and organizational factors associated with company performance-Part II. Journal of Management Studies, 12, 12-27.
22.
Christensen, C.R., Andrews, K.R., & Bower, J.L. (1978). Business policy: Text and cases. Homewood, IL: Irwin.
Cook, T.D., & Campbell, D.T. (1979). Quasi-experimentation: Design and analysis for field settings. Boston: Houghton Mifflin.
25.
Dalton, D.R., Todor, W.D., Spendolini, M.J., Fielding, G.J., & Porter, L.W. (1980). Organization structure and performance: A critical review. Academy of Management Review, 5, 49-64.
26.
Datta, Y. (1979). Competitive strategy and performance of firms in the U.S. TV set industry: 1950-60. Proceedings of the 42nd Annual Meeting of the Academy of Management, Atlanta, 113-117.
27.
Dyas, G.P. (1972). The strategy and structure of French industrial enterprise. Unpublished doctoral dissertation, Harvard University Graduate School of Business Administration, Boston.
28.
Eastlack, J., & McDonald, P. (1970). CEO's role in corporate growth. Harvard Business Review, 48(3), 150-163.
29.
Ford, J.D., & Schellenberg, D.A. (1982). Conceptual issues of linkage in the assessment of organizational performance. Academy of Management Review, 7, 49-58.
30.
Fulmer, R.M., & Rue, L.W. (1974). The practice and profitability of long range planning. Managerial Planning, 22, 1-7.
31.
Fruhan, W. (1972). The fight for competitive advantage: A study of the United States domestic trunk air carriers. Boston: Harvard University Graduate School of Business Administration, Division of Research.
32.
Grinyer, P.H., & Norburn, D. (1975). Planning for existing markets: Perceptions of executives and financial performance. Journal of the Royal Statistical Society, 138(1), 70-97.
33.
Grinyer, P.H., Yasai-Ardekani, M., & Al-Bazzaz, S. (1980). Strategy, structure, the environment and financial performance in 48 United Kingdom companies. Academy of Management Journal, 23, 193-219.
34.
Gunness, R.C. (1971). The payoff from planning. Managerial Planning, 19, 4.
35.
Guth, W.D. (1972, Spring). The growth and profitability of the firm: A managerial explanation. Journal of Business Policy, 2.
36.
Gutman, P.M. (1964). Strategies for growth. California Management Review, 6, 31-36.
37.
Guynes, C.S. (1969). An analysis of planning in large Texas manufacturing firms. Un- published doctoral dissertation, Texas Tech University, Lubbock.
38.
Hambrick, D.C. (1980). Operationalizing the concept of business-level strategy in research. Academy of Management Journal, 5, 567-575.
39.
Hambrick, D.C. (1983). Some tests of the effectiveness and functional attributes of Miles and Snow's strategic types. Academy of Management Journal, 26, 5-26.
40.
Harju, P. (1981). Attitude of strategic managers toward formalized corporate planning. Turku, Finland: School of Economics.
41.
Harrigan, K.R. (1980). Strategy formulation in declining industries. Academy of Management Review, 5, 599-604.
42.
Hatten, K., Schendel, D., & Cooper, A. (1978). A strategic model of the U.S. brewing industry: 1952-1971. Academy of Management Journal, 21, 592-610.
43.
Hegarty, W.H. (1976). The role of strategy formulation on corporate performance. Proceedings of the Midwest American Institute of Decision Sciences, 478-481.
Herold, D.M. (1972). Long range planning and organizational performance: A cross-validation study. Academy of Management Journal, 14, 91-102.
46.
Hofer, C.W. (1973). Some preliminary research on patterns of strategic behavior. Proceedings of the Business Policy and Planning Division of the Academy of Management, 46-54.
47.
Hofer, C.W. (1976). Research on strategic planning: A survey of past studies and suggestions for future efforts. Journal of Economics and Business, 28, 261-286.
48.
Hofer, C.W. (1980). Turnaround strategies. The Journal of Business Strategy, 1, 19-31.
49.
Hofer, C.W., & Schendel, D. (1978). Strategy formulation: Analytical concepts. St. Paul, MN: West.
Huck, S.W., Cormier, W.H., & Bounds, W.G., Jr. (1974). Reading statistics and research. New York: Harper & Row.
52.
Jauch, L.R., & Osborn, R.N. (1981). Toward an integrated theory of strategy. Academy of Management Review, 6, 491-498.
53.
Jauch, L.R., Osborn, R.N., & Glueck, W.F. (1980). Short term financial success in large business organizations: The environment strategy connection. Strategic Management Journal, 1, 49-63.
54.
Kallman, E.A., & Shapiro, H.J. (1978). The motor freight industry-A case against planning. Long Range Planning, 11, 81-86.
55.
Karger, D.W., & Malik, Z.A. (1975). Long range planning and organizational performance. Long Range Planning, 8, 60-64.
56.
Khandwalla, P.N. (1977). Some top management styles, their context and performance. Organization and Administrative Sciences, 7, 21-51.
57.
Klein, H., & Newman, W.H. (1980). How to use SPIRE: A systematic procedure for identifying relevant environments for strategic planning. Journal of Business Strategy, 1, 32-45.
58.
Kudla, R.J. (1980). The effects of strategic planning on common stock returns. Academy of Management Journal, 23, 5-20.
59.
Learned, E., Christensen, C.R., Andrews, K.R., & Guth, W. (1965). Business policy: Text and cases. Homewood, IL: Irwin.
60.
Lenz, R.T. (1980). Environment, strategy, organization structure and performance: Patterns in one industry. Strategic Management Journal, 1, 209-226.
61.
Lenz, R.T. (1981). Determinants of organizational performance: An interdisciplinary review. Strategic Management Journal, 2, 131-154.
62.
Leontiades, M. (1980). Strategies for diversification and change. Boston: Little, Brown.
63.
Leontiades, M. (1982). Management policy, strategy, and plans. Boston: Little, Brown.
64.
Leontiades, M., & Tezel, A. (1980). Planning perceptions and planning results. Strategic Management Journal, 1, 65-75.
65.
Lindsay, W.M., & Rue, L.W. (1980). Impact of the business environment on the long range planning process: A contingency view. Academy of Management Journal, 23, 385-404.
66.
Lorange, P. (1980). Corporate planning: An executive viewpoint. Englewood Cliffs, NJ: Prentice-Hall.
67.
Mahoney, T.A., & Frost, P.J. (1974). The role of technology in models of organizational effectiveness. Organizational Behavior and Human Performance, 11, 122-138.
68.
Malik, Z.A., & Karger, D.W. (1975). Does long-range planning improve company performance?Management Review, 64, 27-31.
69.
McCammon, B.C., & Bates, A.D. (1977). Reseller strategies and the financial performance of the firm. In H.B. Thorelli (Ed.), Strategy + structure = performance (pp. 146-178). Bloomington, IN: Indiana University Press.
70.
McCleary, R., & Hay, R.A., Jr. (1980). Applied time series analysis for the social sciences. Beverly Hills, CA: Sage.
71.
McDowall, D., McCleary, R., Meidinger, E.E., & Hay, R.A. (1980). Interrupted time series analysis. Beverly Hills, CA: Sage.
72.
Miles, R.E., & Snow, C.C. (1978). Organizational strategy, structure, and process. New York: McGraw-Hill.
73.
Mintzberg, H. (1981). What is planning anyway?Strategic Management Journal, 2, 319-324.
74.
Mintzberg, H., & Waters, J.A. (1982). Tracking strategy in an entrepreneurial firm. Academy of Management Journal, 25, 465-499.
75.
Mitroff, I.I., & Mason, R.O. (1981). The metaphysics of policy and planning: A reply to Cosier. Academy of Management Review, 6, 649-651.
76.
Najjar, M.A. (1966). Planning in small manufacturing companies: An empirical study. Unpublished doctoral dissertation, Ohio State University, Columbus.
77.
Narayanan, V.K., & Fahey, L. (1982). The micro-politics of strategy formulation. Academy of Management Review, 7, 25-34.
78.
Paul, R.N., Donavan, N.B., & Taylor, J.W. (1978). The reality gap in strategic planning. Harvard Business Review, 56(3), 124-130.
79.
Newman, H.H. (1978). Strategic groups and the structure performance relationship. The Review of Economics and Statistics, 60, 417-427.
80.
Pavan, R.J. (1972). The strategy and structure of Italian enterprise. Unpublished doctoral dissertation, Harvard Graduate School of Business Administration, Boston.
81.
Porter, M.E. (1979). The structure within industries and companies' performance. The Review of Economics and Statistics, 61, 214-227.
82.
Porter, M.E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
Rhenman, E. (1973). Organization theory for long range planning. New York: Wiley.
85.
Rhyne, L.C. (1983, August). The impact of strategic planning on financial performance. Paper presented at the national meeting of the Academy of Management, Dallas.
86.
Robinson, R.B. (1982). The importance of "outsiders" in small firm strategic planning. Academy of Management Journal, 25, 80-93.
87.
Robinson, R.B., & Pearce, J.A. (1983). The impact of formalized strategic planning on financial performance in small organizations. Strategic Management Journal, 4, 197-207.
88.
Rogers, T.H. (1983). Strategic planning: A major OD intervention. In W.L. French, C.H. Bell, Jr., & R.A. Zawacki (Eds.), Organization development: Theory, practice, research (rev. ed., pp. 168-170). Plano, TX: Business Publications.
89.
Rowe, A.J., Mason, R.O., & Dickel, K.E. (1982). Strategic management and business policy: A methodological approach. Reading, MA: Addison-Wesley.
90.
Rumelt, R.P. (1974). Strategy, structure and economic performance. Boston: Harvard University Press.
91.
Sapp, R.W., & Seiler, R.E. (1981). The relationship between long-range planning and financial performance of U.S. commercial banks. Managerial Planning, 29, 32-36.
92.
Schendel, D.E., & Hofer, C.W. (1979). Strategic management: A new view of business policy and planning. Boston: Little, Brown.
93.
Schendel, D.E., & Patten, R. (1975). An empirical study of corporate stagnation and turnaround. Proceedings of the 35th Annual Meeting of the Academy of Management, 49-51.
94.
Schendel, D.E., Patten, R., & Riggs, J. (1974). Corporate turnaround strategies. Paper presented at the 34th annual meeting of the Academy of Management, Seattle.
95.
Schoeffler, S., Buzzell, R.D., & Heany, D.F. (1974). Impact of strategic planning on profit performance. Harvard Business Review, 52(2), 137-145.
96.
Schwenk, C.R. (1982). Why sacrifice rigour for relevance? A proposal for combining laboratory and field research in strategic management. Strategic Management Journal, 3, 213-225.
97.
Scott, W.G., Mitchell, T.R., & Birnbaum, P.H. (1981). Organization theory: A structural and behavioral analysis. Homewood, IL: Irwin.
98.
Sheehan, G. (1975). Long-range strategic planning and its relationship to firm size, firm growth, and firm growth variability: An explorative, empirical investigation. Unpublished doctoral dissertation, University of Western Ontario, London, Ontario, Canada.
99.
Smith, G. (1980). Planning for productivity. Long Range Planning, 13, 52-63.
Stagner, R. (1969). Corporate decision making. Journal of Applied Psychology, 53, 1-13.
102.
Steiner, G.A. (1969). Strategic factors in business success. New York: Financial Executives Research Foundation, 1969.
103.
Steiner, G.A. (1979). Strategic planning: What every manager must know. New York: Free Press.
104.
Summer, C.E. (1980). Strategic behavior in business and government. Boston: Little, Brown.
105.
Taylor, L. (1984). Strategic alternative and goal level effects on decision quality and goal commitment. Unpublished doctoral dissertation, Indiana University, Bloomington.
106.
Thanheiser, H.T. (1972). Strategy and structure of German industrial enterprise. Unpublished doctoral dissertation, Harvard Graduate School of Business Administration, Boston.
107.
Thune, S.S., & House, R.J. (1970). Where long-range planning pays off-Findings of a survey of formal and informal planners. Business Horizons, 13, 81-87.
108.
Unni, V.K. (1981). The role of strategic planning in small businesses. Long Range Planning, 14, 54-58.
109.
Vancil, R.F. (1970). The accuracy of long range planning. Harvard Business Review, 48(5), 98-101.
110.
Van de Ven, A.H. (1980). Early planning, implementation, and performance of new organizations. In J.R. Kimberly and R.H. Miles (Eds.), The organizational life cycle (pp. 83-133). San Francisco: Jossey-Bass.
111.
Verbrugge, J., & Goldstein, S. (1978, November). High performers versus low performers: What makes the difference?Savings and Loan News, pp. 64-69.
112.
Verbrugge, J., Schick, R., & Thygerson, K. (1975, July). Profitability: Management control or market coincidence?Savings and Loan News, pp. 70-75.
Why companies grow. (1957, November). Nations Business, pp. 80-86.
115.
Wood, D.R., & LaForge, R.L. (1979). The impact of comprehensive planning on financial performance. Academy of Management Journal, 22, 516-526.
116.
Wood, D.R., & LaForge, R.L. (1981). Toward the development of a planning scale: An example from the banking industry. Strategic Management Journal, 2, 209-216.
117.
Woodward, J. (1965). Industrial organization: Theory and practice. London: University Press.