This study analyzes the relationship between management participation in strategy formation and organizational planning benefits with the construction and subsequent empirical validation of a large-scale structural equation model with 57 items. This model simultaneously considered first-order and second-order measurement models as well as the structural model. Methodological emphasis was placed on developing expanded conceptualizations of these strategy constructs by modeling them as second-order factors and expressing their defining constituent domains of content as first-order factors. Results indicate a strong causal linkage between management participation and two classes of strategic benefits, suggesting that management participation enhances the effectiveness of the strategy process.
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