Mediating Role of Managerial and Stakeholder Involvement in the Effect of Formal Strategic Planning on Strategic Implementation Success: Case of Municipal Government in Cirebon, West Java

Abstract

In sector public organization, strategic planning becomes a crucial thing to do as the first step in developing an administrative area. As one of the fast-growing areas, Cirebon is one of the promising regencies in west java, Indonesia. This study aims to discuss the mediating effects of managerial and stakeholder involvement in its correlation with formal strategic planning and strategic implementation success. The statistical results indicate that all proposed hypotheses are accepted in this study. In addition, it reaffirms the concept that a public organization which ties rewards to the success of the strategic implementation must be clearly developed, indicating that there is a higher need of managerial and stakeholder involvement. Furthermore, results show that stakeholder involvement has an important role in mediating the effect of formal strategic planning on strategic implementation success. The findings of this study for public management research are further considered and discussed.