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Strategic Planning and Financial Performance in the Food Processing Sector
Author(s) -
Baker Gregory A.
Publication year - 2003
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/1467-9353.00150
Subject(s) - strategic planning , business , confirmatory factor analysis , strategic financial management , finance , marketing , service (business)
Abstract Research on the impact of formal strategic planning on firm performance has yielded mixed results. In this study, approximately 200 executives in five food processing industries were surveyed to examine the relationship between formal strategic planning and financial performance. A multiple indicator measure of strategic planning was assessed using confirmatory factor analysis. Results of the strategic planning‐performance model indicate that use of strategic planning tools has a positive impact on financial performance as measured by the 3‐year average pretax return on assets.