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