Effects of strategic consciousness and strategic planning on business performance: A comparative study of the industries in Turkey

Abstract

In this study, two concepts (strategic consciousness and strategic planning) were considered as different concepts. Strategic planning is a process which takes place after strategic consciousness. Strategic consciousness is a construct that consists of reframing, system thinking, learning orientation, and reflecting dimensions. These dimensions were tested to determine whether or not they have effects on the factors of strategic planning such as institutionalization of strategic planning, existence of vision and mission statements and action plan, performance measurement, and stakeholder analysis. Reframing and reflection were found to be the most significant determinants of institutionalization of strategic planning. Learning orientation and reflection had a significant effect on the existence of vision and mission statements and action plan in organizations. Reframing, learning orientation, and reflection significantly determined performance measurement in the firms. Reframing, system thinking, and reflection had a deterministic effect on stakeholder analysis. On the other hand, the performance of a firm was seen as a function of such variables as institutionalization of strategic planning and existence of vision and mission statements and action plan. By carrying out an analysis based on the factor of diversification of industries, it could be argued that hotels appeared more conscious than textile industries and had more efficient planning applications than textile and food industries. The firms in the food industry were more effective than the firms in the textile industry based to the three factors of consciousness. By carrying out an analysis based on the factor of diversification by firm size, there was a major difference between big and small sized firms. The big sized firms used more strategic consciousness and planning than the small sized firms.