An Investigation of the Planning-Performance Conundrum in a Dynamic Macroentrepreneurial Environment

Authors

  • Michael D. Ensley Rensselaer Polytechnic Institute
  • James W. Carland Western Carolina University
  • JoAnn C. Carland Western Carolina University

Abstract

While it is intuitively appealing from  a theoretical perspective  to confirm  the relationship between strategic planning and performance as measured by growth and profitability,  many unknowns tend to confound the perfect model.  The literature is rich with studies attempting to explicate the dynamics of planning  and performance, yet  there is no closure because of the vagaries of sample and methodology.   This paper  investigates the planning-performance conundrum  in a dynamic macroentrepreneurial   environment.

The results  of this study  clearly  show  that for   the present  sample  of macroentrepreneurs, strategic   planning    had   a   deleterious    effect   on   peiformance.        This   suggests    that entrepreneurship  researchers  may  need  to reexamine  some  basic  axioms  and precepts.    For example,  perhaps   entrepreneurs  do  employ  a  rapidly  evolving  vision  to  negotiate  through dynamic   environments   rather   than   operate   under   the  constraints   of  strategic   planning. Clearly,  the firms   in  this  sample  were  all  highly  successful  ventures.    Further,  they  all practiced  strategic  management.   If strategic planning  did not contribute to that success,  what did? The search for an explanation continues.

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Published

2003-06-24

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Vol. 14 No. 2 (2003)

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An Investigation of the Planning-Performance Conundrum in a Dynamic Macroentrepreneurial Environment. (2003). Journal of Small Business Strategy (archive Only), 14(2), 1-21. https://libjournals.mtsu.edu/index.php/jsbs/article/view/528