Over half a century of strategic planning performance research – what have we been missing?

Abstract

PurposeThe purpose of this paper is to provide a review of literatures and previous studies on the relationship between strategic planning and performance and propose conceptual designs and hypotheses using multidimensional constructs to advance the understanding of this relationship, contribute to existing debates in the extant literature and make recommendations.Design/methodology/approachA semi-systematic literature and previous studies (studied by various groups of researchers within diverse disciplines) review approach has been used in this paper to contribute to the debate on whether strategic planning affects performance and how. Using more recent knowledge about the strategic planning concept, the semi-systematic review looked at how research within strategic planning has progressed over the past five decades and its relationship with performance.FindingsIn the past, the strategic planning performance relationship has been treated as a black box and this paper proposes that the conceptualisation of a number of constructs and the inclusion of strategy implementation will help converting the black box into a white box. To strengthen support for the debate regarding the relationship between strategic planning and performance this paper proposes a further conceptual/operational design, mathematical expressions and hypotheses to be tested empirically in further studies. The proposal provides a conceptualisation of the major constructs (strategy development; strategy implementation; and performance), and the use of strategy implementation as a mediator and/or as a moderator in the planning performance relationship.Research limitations/implicationsThis study is limited due to fact that the findings have not been tested empirically, it is not a cross-sectional and/or a longitudinal research and only a limited number of dimensions of strategy development and strategy implementation have been used. In addition, the approach used is a semi-systematic review followed by quantitative thinking, which, in turn, typically assumes the relevance of and a warrant mainly from a positivist epistemology.Originality/valueThe proposed design developed in this paper ensures that core issues in planning performance relationships research are addressed. Furthermore, the inclusion of strategy implementation in planning performance relationship studies means that the whole chain of activities in the strategy process is being considered, drawing a complete and comprehensive conclusion on how strategic planning affects an organisation’s performance. In addition, by separating strategy implementation and by not combining it with formulation/formation activities will theoretically and analytically help to evaluate the importance or role of each stage of the strategy process. Moreover, the conceptualisation and operationalisation of the key concepts as multidimensional constructs contribute to past research gaps. Finally, this paper provides some clarity to many contradictory findings concerning the strategic planning and performance relationship.