Abstract
The primary purpose of this study was to explore the relationship between scenario planning and strategic performance. The data was collected from 121 Multinational corporations operating in Jordan by using a questionnaire. Pearson correlation and the partial least squares (PLS) methodology for factor analysis and path modelling was used to test the study hypotheses. The study found a positive and statistically significant relationships between scenario planning and the four components of strategic performance: financial performance, customer performance, learning and growth, and internal business processes. Based on these findings, the study recommends that managers should apply scenario planning practices to enhance the levels of strategic performance in their companies. Additionally, managers should raise the awareness of their employees regarding the importance of both scenario planning and strategic performance. Moreover, managers should provide their employees with adequate training courses in relation to acquire the knowledge and build their skills in the field of scenario planning. Finally, managers should use the diagnostic instruments that developed by previous research to assess a company’s strategic performance and scenario planning practices, identify managerial practices that need to be implemented or improved, and determine the resources that might realistically be required to build a better scenario planning process and promote strategic performance. Much more research and studies need to be performed in this budding subject. Links among scenario planning and another organizational topics and outcomes need to be searched.
Highlights
The challenges facing multinational corporations in the business environment can be described by the “volatility, uncertainty, complexity and ambiguity” (Bennett and Lemoine 2014)
The current study empirically tested the relationship between scenario planning and the strategic performance of multinational corporations in Jordanian context
The findings revealed that the scenario planning has a significant positive relationship with learning and growth and it is in line with previous studies (Arafet and Ali 2018, Bennett et al 2016, Burt et al 2017, Glick et al 2012, Schwartz 1996, van der Heijden 1996)
Summary
The challenges facing multinational corporations in the business environment can be described by the “volatility, uncertainty, complexity and ambiguity” (Bennett and Lemoine 2014). Looking at these challenges, we can see that traditional strategic planning tools may lack an essential future-related perspective (Hartmann and Stillings 2015). The rapid pace at which changes in economic and business conditions are occurring has been highlighted as a major challenge for multinational corporation. Such a change directly impedes multinational corporation’s ability to implement their intended strategy. Scenario planning as a business activity has gained increased traction as a tool for addressing complexity, uncertainty, and the unknown (Haasnoot et al 2013, Oliver and Parrett 2017)
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