The impact of formalized strategic planning on financial performance in small organizations
Article first published online: 7 NOV 2006
Copyright © 1983 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 4, Issue 3, pages 197–207, July/September 1983
How to Cite
Robinson, R. B. and Pearce, J. A. (1983), The impact of formalized strategic planning on financial performance in small organizations. Strat. Mgmt. J., 4: 197–207. doi: 10.1002/smj.4250040302
- Issue published online: 7 NOV 2006
- Article first published online: 7 NOV 2006
- Manuscript Revised: 28 JUN 1982
- Manuscript Received: 24 AUG 1981
The relationship between formality of planning procedures and financial performance was examined for a sample of small U.S. banks. Small banks without formal planning systems performed equally with small, formal planners. Regardless of formality, each set of banks placed equal emphasis on all aspects of strategic decision-making except formalized goals and objectives. Results suggest that managers responsible for strategic planning activity in smaller organizations do not appear to benefit from a highly formalized planning process, extensive written documentation, or the use of mission and goal identification as the beginning of a strategic planning process.