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Planning and financial performance of small, mature firms
Author(s) -
Bracker Jeffre Y. S.,
Pearson John N.
Publication year - 1986
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250070603
Subject(s) - sophistication , strategic planning , business , process (computing) , variance (accounting) , multivariate analysis of variance , multivariate statistics , industrial organization , finance , marketing , accounting , computer science , social science , machine learning , sociology , operating system
Abstract This article develops a classification scheme of planning process sophistication in small firms, categorizes small firms according to planning process sophistication, and examines the relationship between planning process sophistication and the financial performance of a select group of small, mature firms. The study overcomes several methodological shortcomings of prior research on strategic planning and firm performance. Multivariate analysis of variance is used to identify statistically significant differences between the financial performance data of firms that employ structured, strategic plans and those that do not. The results confirm previous research on strategic planning and financial performance. Finally, recommendations are made for future research.