IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v25y2005i3p207-222.html
   My bibliography  Save this article

Longitudinal Analysis of Relationships between Planning and Performance in Small Firms

Author

Listed:
  • Brian Gibson
  • Gavin Cassar

Abstract

This paper investigates causal relationships between planning and performance utilizing a longitudinal database with responses from the same 2,956 businesses over a four-year period. Results confirm the association between planning activity and performance that is evident in most extant literature. They also, however, cast doubt on the traditional perception of the causal sequence of that association. Although subject to a number of limitations, the results indicate that planning is more likely to be introduced into a small firm after a period of growth rather than before a period of growth. These results make an important contribution to understanding the planning performance relationship for two main reasons: they overcome the static data and relatively smaller sample size restrictions of many past studies; and, they provide evidence concerning the sequence of the relationship between planning and performance. Copyright Springer 2005

Suggested Citation

  • Brian Gibson & Gavin Cassar, 2005. "Longitudinal Analysis of Relationships between Planning and Performance in Small Firms," Small Business Economics, Springer, vol. 25(3), pages 207-222, October.
    • Handle: RePEc:kap:sbusec:v:25:y:2005:i:3:p:207-222
    DOI: 10.1007/s11187-003-6458-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11187-003-6458-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-003-6458-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Charles R. Schwenk & Charles B. Shrader, 1993. "Effects of Formal Strategic Planning on Financial Performance in Small Firms: A Meta-Analysis," Entrepreneurship Theory and Practice, , vol. 17(3), pages 53-64, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kohei Takahashi & Yuki Hashimoto, 2023. "Small grant subsidy application effects on productivity improvement: evidence from Japanese SMEs," Small Business Economics, Springer, vol. 60(4), pages 1631-1658, April.
    2. 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.
    3. Kawar Mohammed Mousa & Khairi Ali Auso Ali & Sabahat Gurler, 2024. "Strategic Planning and Organizational Performance: An Empirical Study on the Manufacturing Sector," Sustainability, MDPI, vol. 16(15), pages 1-17, August.
    4. Monika Maříková & Ladislav Rolínek & Jaroslav Vrchota & Petr Řehoř, 2022. "Determination of the Level of Strategic Management in SMEs," Central European Business Review, Prague University of Economics and Business, vol. 2022(3), pages 55-78.
    5. Giovanna Mariani & Davide Morelli & Leonardo Bartoloni, 2019. "Managing uncertainty in the start-up environment. Is a business plan an incentive or a limitation?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1), pages 73-96.
    6. Oluwaseun Niyi Anifowose & Matina Ghasemi & Banji Rildwan Olaleye, 2022. "Total Quality Management and Small and Medium-Sized Enterprises’ (SMEs) Performance: Mediating Role of Innovation Speed," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    7. Maziriri E T & Chinomona E, 2016. "Modeling the Influence of Relationship Marketing, Green Marketing and Innovative Marketing on the Business Performance of Small, Medium and Micro Enterprises (SMMES)," Journal of Economics and Behavioral Studies, AMH International, vol. 8(3), pages 127-139.
    8. Ahmed Imran Hunjra & Nuzhat Shamim & Babar Khalid, 2014. "Impact of Strategic Planning on the Financial Performance of Small and Medium Banks in Islamabad," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 3(2), pages 96-130, June.
    9. Dong Xiang & Andrew C. Worthington & Helen Higgs, 2011. "Firm-level determinants and impacts of finance-seeking behaviour and outcomes for small and medium-sized enterprises (SMEs) in Australia," Discussion Papers in Finance finance:201115, Griffith University, Department of Accounting, Finance and Economics.
    10. Brinckmann, Jan & Grichnik, Dietmar & Kapsa, Diana, 2010. "Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning-performance relationship in small firms," Journal of Business Venturing, Elsevier, vol. 25(1), pages 24-40, January.
    11. Zachary B. Awino, 2013. "Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya," Business and Management Horizons, Macrothink Institute, vol. 1(1), pages 191-204, June.
    12. Abbas Valadkhani & George Chen & Bernice Kotey, 2014. "Asymmetric changes in Australia’s small business loan rate," Small Business Economics, Springer, vol. 43(4), pages 945-957, December.
    13. Elias Hadjielias & Michael Christofi & Shlomo Tarba, 2022. "Contextualizing small business resilience during the COVID-19 pandemic: evidence from small business owner-managers," Small Business Economics, Springer, vol. 59(4), pages 1351-1380, December.
    14. HASHIMOTO Yuki & TAKAHASHI Kohei, 2021. "Are Applying for and Receiving Subsidy Worth for Small Enterprises? Evidence from the Government Support Program in Japan," Discussion papers 21039, Research Institute of Economy, Trade and Industry (RIETI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lerner, Miri & Brush, Candida & Hisrich, Robert, 1997. "Israeli women entrepreneurs: An examination of factors affecting performance," Journal of Business Venturing, Elsevier, vol. 12(4), pages 315-339, July.
    2. Barringer, Bruce R. & Greening, Daniel W., 1998. "Small business growth through geographic expansion: A comparative case study," Journal of Business Venturing, Elsevier, vol. 13(6), pages 467-492, November.
    3. Ahmed Imran Hunjra & Nuzhat Shamim & Babar Khalid, 2014. "Impact of Strategic Planning on the Financial Performance of Small and Medium Banks in Islamabad," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 3(2), pages 96-130, June.
    4. van Gelderen, Marco & Frese, Michael & Thurik, Roy, 2000. "Strategies, Uncertainty and Performance of Small Business Startups," Small Business Economics, Springer, vol. 15(3), pages 165-181.
    5. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
    6. Krol, Florian, 2007. "Value based management in small and medium enterprises: Analysis of internal and external impulses and possibilities of implementation," Arbeitspapiere des Lehrstuhls für Betriebswirtschaftslehre, insbesondere Controlling 9-1, University of Münster, Chair of Management Accounting.
    7. Phelps, R. & Chan, C. & Kapsalis, S. C., 2001. "Does scenario planning affect performance? Two exploratory studies," Journal of Business Research, Elsevier, vol. 51(3), pages 223-232, March.
    8. 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.
    9. Kevin Wachira & Edna Musyoki, 2015. "Factors Affecting Development of Business Plans by Small and Medium Enterprises in Kenya: A Survey of Commercial Rabbit Farmers in Thika District," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(5), pages 182-189, May.
    10. Philippe Baumard & William H Starbuck, 2002. "Est-il réaliste d'étudier les mouvements stratégiques d'une firme ?," Post-Print hal-03230324, HAL.
    11. Anna Long & Matthew S. Wood & Daniel L. Bennett, 2023. "Entrepreneurial organizing activities and nascent venture performance," Small Business Economics, Springer, vol. 60(2), pages 433-461, February.
    12. Yoon Lee & Maria Marshall, 2013. "Goal Orientation and Performance of Family Businesses," Journal of Family and Economic Issues, Springer, vol. 34(3), pages 265-274, September.
    13. Giovanna Mariani & Davide Morelli & Leonardo Bartoloni, 2019. "Managing uncertainty in the start-up environment. Is a business plan an incentive or a limitation?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1), pages 73-96.
    14. Lucrezia Songini & Paola Vola, 2015. "The Role of Professionalization and Managerialization in Family Business Succession," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2015(1), pages 9-43.
    15. Johnson, Aaron J. & Johnson, Heather C. & Devadoss, Stephen & Foltz, John C., 2011. "Strategic Group Analysis of U.S. Food Businesses Using the Two-step Clustering Method," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-16, May.
    16. Dominic, Theresia & Theuvsen, Ludwig, 2015. "The Impact of External and Internal Factors on Strategic Management Practices of Agribusiness Firms in Tanzania," GlobalFood Discussion Papers 197072, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    17. Zachary B. Awino, 2013. "Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya," Business and Management Horizons, Macrothink Institute, vol. 1(1), pages 191-204, June.
    18. Grimmer, Louise & Grimmer, Martin & Mortimer, Gary, 2018. "The more things change the more they stay the same: A replicated study of small retail firm resources," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 54-63.
    19. Mathias Arrfelt & Michael Mannor & Jennifer D. Nahrgang & Amanda L. Christensen, 2018. "All risk-taking is not the same: examining the competing effects of firm risk-taking with meta-analysis," Review of Managerial Science, Springer, vol. 12(3), pages 621-660, July.
    20. Chrisman, James J. & McMullan, Ed & Hall, Jeremy, 2005. "The influence of guided preparation on the long-term performance of new ventures," Journal of Business Venturing, Elsevier, vol. 20(6), pages 769-791, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:25:y:2005:i:3:p:207-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.