IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v3y2014i2p96-130.html
   My bibliography  Save this article

Impact of Strategic Planning on the Financial Performance of Small and Medium Banks in Islamabad

Author

Listed:
  • Ahmed Imran Hunjra

    (Lecturer, UIMS-PMAS-University of Arid Agriculture Rawalpindi, and PhD Scholar Iqra University Islamabad, Pakistan)

  • Nuzhat Shamim

    (Col. MBA Student, Allama Iqbal Open University, Islamabad, Pakistan)

  • Babar Khalid

    (MBA Student, UIMS-PMAS-Arid Agriculture University Rawalpindi, Pakistan)

Abstract

Strategic planning is the ongoing practice of organizations and firms to improve the firm’s performance. This study plans to find out the relationship between strategic planning and financial performance of microfinance banks in Pakistan. For this purpose, questionnaire has been designed. Population of this study were the professionals and top management of four microfinance banks of Islamabad region i.e. study i) Kashaf Bank ii) Khushhali Bank iii) Waseela Microfinance Bank iv) Tameer Microfinance Bank. Sample size of forty one top management professionals of microfinance banks was selected. For analysis purpose, SPSS was used and descriptive and inferential statistics i.e. t-test, ANOVA and regression analysis has been applied. In this study, we find financial performance has positive and substantial relationship with independent variables of strategic planning and regression results reveals significant relation between strategic planning and Return on assets, insignificant relationship among formal and non-formal planning and financial performance and Return on Equity with strategic planning also shows significant relationship.

Suggested Citation

  • 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.
    • Handle: RePEc:rfh:bbejor:v:3:y:2014:i:2:p:96-130
    as

    Download full text from publisher

    File URL: https://bbejournal.com/index.php/BBE/article/view/208/164
    Download Restriction: no
    File URL: https://bbejournal.com/index.php/BBE/article/view/208
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard B. Robinson & John A. Pearce, 1983. "The impact of formalized strategic planning on financial performance in small organizations," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 197-207, July.
    2. Greenley, Gordon E., 1994. "Strategic planning and company performance: An appraisal of the empirical evidence," Scandinavian Journal of Management, Elsevier, vol. 10(4), pages 383-396, December.
    3. Rudd, John M. & Greenley, Gordon E. & Beatson, Amanda T. & Lings, Ian N., 2008. "Strategic planning and performance: Extending the debate," Journal of Business Research, Elsevier, vol. 61(2), pages 99-108, February.
    4. Thune, Stanley S. & House, Robert J., 1970. "Where long-range planning pays off Findings of a survey of formal, informal planners," Business Horizons, Elsevier, vol. 13(4), pages 81-87, August.
    5. 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.
    6. Jeffre Y. S. Bracker & John N. Pearson, 1986. "Planning and financial performance of small, mature firms," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 503-522, November.
    7. 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.
    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. Makkawi Hasan, 2023. "The Influence of Risk Management and the Strategic Planning on Sustainable Business Performance of SMEs: The Case of Palestine," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 812-821, July.

    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. 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.
    2. 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.
    3. 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.
    4. Stojan Debarliev & Marija Trpkova, 2011. "Strategic planning practice in transition economies: Empirical evidence from the Macedonian context," Business and Economic Horizons (BEH), Prague Development Center, vol. 4(1), pages 27-39, January.
    5. Peter Maik Hamann & Oliver Halw & Thomas W. Guenther, 2023. "Meta‐analysis of the corporate planning–organizational performance relationship: A research note," Strategic Management Journal, Wiley Blackwell, vol. 44(7), pages 1803-1819, July.
    6. Titus Jr., Varkey K. & Covin, Jeffrey G. & Slevin, Dennis P., 2011. "Aligning strategic processes in pursuit of firm growth," Journal of Business Research, Elsevier, vol. 64(5), pages 446-453, May.
    7. Robert N. Lussier & Matthew C. Sonfield & Joel Corman & Mary McKinney, 2001. "Strategies Used by Small Business Entrepreneurs," American Journal of Business, Emerald Group Publishing, vol. 16(1), pages 29-38.
    8. James J. Chrisman & John Leslie, 1989. "Strategic, Administrative, and Operating Problems: The Impact of Outsiders on Small Firm Performance," Entrepreneurship Theory and Practice, , vol. 13(3), pages 37-52, April.
    9. Debarliev, Stojan & Trpkova, Marija, 2011. "Strategic planning practice in transition economies: Empirical evidence from the Macedonian context," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 4(1), pages 1-13, January.
    10. Phillips, Paul & Moutinho, Luiz, 2014. "Critical review of strategic planning research in hospitality and tourism," Annals of Tourism Research, Elsevier, vol. 48(C), pages 96-120.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. Mohamud Jama Ali & Elegwa Mukulu & John M. Kihoro & Joyce D. Nzulwa, 2016. "Moderating Effect of Firm Size on the Relationship between Functional Integration and Firm Performance," 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. 6(9), pages 38-57, September.
    16. Rudd, John M. & Greenley, Gordon E. & Beatson, Amanda T. & Lings, Ian N., 2008. "Strategic planning and performance: Extending the debate," Journal of Business Research, Elsevier, vol. 61(2), pages 99-108, February.
    17. Salisu Isyaku, 2014. "Mediating Effect of Uncertainty Avoidance on the Relationship between Entrepreneurial Talent and SMEs Performance in Nigeria: A Conceptual Analysis," 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. 4(6), pages 368-383, June.
    18. 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.
    19. Mohamed Laid Ouakouak, 2018. "Does a strategic planning process that combines rational and adaptive characteristics pay off ? Evidence from European firms," Australian Journal of Management, Australian School of Business, vol. 43(2), pages 328-349, May.
    20. Mahmood S. Bahaee, 1993. "Strategy-Comprehensiveness Fit and Perfor Mance," Australian Journal of Management, Australian School of Business, vol. 17(2), pages 195-215, December.

    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:rfh:bbejor:v:3:y:2014:i:2:p:96-130. 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: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    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.