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Planning System Success: A Conceptualization and an Operational Model

Author

Listed:
  • N. Venkatraman

    (Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • Vasudevan Ramanujam

    (The Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio 44106)

Abstract

Research on strategic planning has been handicapped by lack of an appropriate operationalizing scheme for measuring the success of planning systems. In this paper, an operational model for measuring planning system success is developed in terms of two interrelated dimensions---improvements in the capabilities of the planning system and extent of fulfillment of key planning objectives. Multiple items reflecting these dimensions are proposed. Construct validity of the two dimensions are evaluated by applying Jöreskog's analysis of covariance structures approach on data on the planning practices of 202 strategic planning units. Validated measurement schemes for the two model dimensions are offered for use in future research efforts on strategic planning effectiveness.

Suggested Citation

  • N. Venkatraman & Vasudevan Ramanujam, 1987. "Planning System Success: A Conceptualization and an Operational Model," Management Science, INFORMS, vol. 33(6), pages 687-705, June.
    • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:6:p:687-705
    DOI: 10.1287/mnsc.33.6.687
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    Cited by:

    1. Camisón, César & Villar-López, Ana, 2014. "Organizational innovation as an enabler of technological innovation capabilities and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2891-2902.
    2. Thomas Schaefer & Thomas Guenther, 2016. "Exploring strategic planning outcomes: the influential role of top versus middle management participation," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(2), pages 205-249, May.
    3. Samer Faraj & Lee Sproull, 2000. "Coordinating Expertise in Software Development Teams," Management Science, INFORMS, vol. 46(12), pages 1554-1568, December.
    4. Hamzah E. Alqudah & Mani Poshdar & Luqman Oyekunle Oyewobi & James Olabode Bamidele Rotimi & John Tookey, 2023. "Sustaining Construction Organisations in NZ: A Linear Regression Model Approach to Analysing Determinants of Their Performance," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    5. P. Maik Hamann, 2017. "Towards a contingency theory of corporate planning: a systematic literature review," Management Review Quarterly, Springer, vol. 67(4), pages 227-289, August.
    6. van der Zee, J.T.M., 1996. "In Search of the Value of Information Technology," Other publications TiSEM 833512ff-2880-4c7f-817b-7, Tilburg University, School of Economics and Management.
    7. Hamzah E. Alqudah & Mani Poshdar & Luqman Oyewobi & James Olabode Bamidele Rotimi & John Tookey, 2021. "Business Environment, CRM, and Sustainable Performance of Construction Industry in New Zealand: A Linear Regression Model," Sustainability, MDPI, vol. 13(23), pages 1-17, November.
    8. Labroukos, N. S. & Lioukas, S. & Chambers, D., 1995. "Planning and performance in state-owned enterprises: A multidimensional assessment," European Journal of Operational Research, Elsevier, vol. 87(3), pages 624-640, December.
    9. Juhani Ukko & Minna Saunila & Sariseelia Sore & Tero Rantala & Mina Nasiri, 2023. "Exploring the Effect of E-Business Operations on E-Business Performance: Moderating Effect of Responsiveness to the Supplier," SAGE Open, , vol. 13(3), pages 21582440231, August.
    10. Safal Batra & Sunil Sharma & Mukund R Dixit & Neharika Vohra, 2018. "Does strategic planning determine innovation in organizations? A study of Indian SME sector," Australian Journal of Management, Australian School of Business, vol. 43(3), pages 493-513, August.
    11. Minna Saunila & Juhani Ukko & Jorma Kinnunen, 2024. "Sustainability partnership as a moderator in the relationship between business sustainability and firm competitiveness," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 123-133, February.
    12. Gruber, Marc, 2007. "Uncovering the value of planning in new venture creation: A process and contingency perspective," Journal of Business Venturing, Elsevier, vol. 22(6), pages 782-807, November.
    13. Basco, Rodrigo & Pérez Rodríguez, María José, 2011. "Ideal types of family business management: Horizontal fit between family and business decisions and the relationship with family business performance," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 151-165.
    14. Minna Saunila & Juhani Ukko & Tero Rantala & Mina Nasiri & Hannu Rantanen, 2020. "Preceding operational capabilities as antecedents for productivity and innovation performance," Journal of Business Economics, Springer, vol. 90(4), pages 537-561, May.

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    Keywords

    planning systems; strategic planning;

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