Strategic Planning, Planning Outcomes and Organizational Performance
Date
2012Author
Awino, Zachary Bolo
Muturia, Jemimah M.
Oeba, Linet K.
Type
OtherLanguage
enMetadata
Show full item recordAbstract
This study investigates the influence of strategic planning and planning outcomes;
planning outcomes and firm performance. Measures of strategic planning were seven
dimensions namely internal orientation, external orientation, functional integration, key
personnel involvement in planning, use of planning techniques, creativity in planning,
focus on control. Measures of planning outcomes comprised direction and focus,
sustainable competitive advantage, firm-environment fit, efficiency in allocation of
resources, improved innovation, greater organizational commitment, improved coordination
and control of organization activities, improved organizational analysis.
Measures of firm performance were both financial and non financial. Financial items
composed of Gross Profit Margin, Return on Investment and Return on Asset. Non
financial items comprised of ability to evaluate alternatives, ability to avoid mistakes,
improved budget process. Commercial banks in Kenya were studied using both primary
and secondary data. In this study, a census of 44 commercial banks in Nairobi Kenya
was done. The majority (80 per cent) of the respondents were managers in charge of
planning and 20 per cent were either heads of human resource departments or business
and marketing department. Various data analysis procedures were applied including
descriptive analysis, Pearson Moment Correlation Coefficient; F-statistics were used in
order to accomplish the objectives of the study. Hypotheses H1, H2, H3 were tested for
correlation. The study found that there are a positive and significant relationship
between strategic planning (seven dimensions of planning) and firm performance;
strategic planning and planning outcomes and finally planning outcomes and firm
performance. Thus, the study suggests that effective and focused strategic planning lead
to positive change in firm performance. This study therefore is significant since it has
contributed immensely to the body of knowledge more specifically in strategic planning
where key variables of the study have been linked individually to organizational
performance. The study also impacts positively to the readers and scholars where they
are able to relate strategic planning, planning outcomes and performance in a real
working environment and interrogate the existing theories and concepts in the area of
strategic management in the African context.
Citation
DBA Africa Management Review 2012, Vol 2 No 3, pp 134-149Subject
Strategic planningPlanning Outcomes
Firm Performance
Commercial banks
Multi-dimensional Strategic Planning
Kenya
Description
Strategic Planning, Planning Outcomes and Organizational Performance – An Empirical Study of Commercial Banks in Kenya