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Strategic planning, scanning activities and the financial performance of small firms
Author(s) -
Orpen Christopher
Publication year - 1994
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.4240030106
Subject(s) - business , strategic planning , marketing , industrial organization , telephone survey , process management
The role of firm and environmental scanning activities on the planning‐performance relationship was examined among 51 small firms in a telephone survey. Small firms which engaged in formalized planning performed better financially than those which did not. They also possessed more information about themselves and their environment than the non‐planning firms and made greater use of this information in strategic decision‐making. The acquisition and utilization of information about the firm and its environment was found to mediate the impact of strategic planning on performance. Implications for improving the strategic planning of small firms and the extent to which it affects on performance are developed.