Exploring strategic planning outcomes: the influential role of top versus middle management participation

Abstract

This paper explores whether the relationships among different dimensions of strategic planning outcomes are moderated by the predominant participation of top via middle managers in the strategic planning process. Drawing on survey data from 164 large firms, we use structural equation modeling to examine the relationships among four outcome variables. We provide support for three major findings. First, the Strategically Aligned Behavior of middle and lower managers is positively associated with both successful strategy implementation and the effectiveness of strategic planning, while the former is also positively related with the latter. These relationships are robust to accounting for the extent of participation by top or middle managers in the strategic planning process. Second, having top managers play a predominant role the strategic planning process fosters the positive relationship between successful strategy implementation and Organizational Performance. Third, having middle managers play a dominant role in the strategic planning process supports the significantly positive effect of Strategic Planning Effectiveness on Organizational Performance. Overall, we conclude that improvements in Organizational Performance result from the choice of participation of top and/or middle management in the strategy process.