Contextual Determinants of Strategic Planning Processes

Abstract

This paper extends the study of contextual determinants of planning processes in three important directions. First, we present a comprehensive conceptualization of planning processes along six design dimensions. Second, in addition to examining the effects of environments, technology, and organizational complexity, we assess the effects of the organization's strategic orientation on the design of planning processes. Third, we move towards a configurational approach and explore the effects of concurrent presence of multiple contingencies. The study uses data from a large sample of North American corporations. The results suggest that the forces of context govern the design of planning processes. Furthermore, exploration of the effects of concurrent presence of multiple contingencies provides interesting illustrations of situations where the forces of context are aligned in the same direction as well as situations where the forces pull in opposite directions.