Strategic planning and organizational performance: evidence from tigray

Desalegn Berhane Asgedom ()
Additional contact information
Desalegn Berhane Asgedom: Adigrat University, Department of Management

SN Business & Economics, 2025, vol. 5, issue 12, 1-26

Abstract: Abstract Strategic planning is a proactive action that involves defining an organization’s goals and objectives and finding ways to achieve them within a specific period. For this reason, business owners and managers around the world have identified strategic planning as one of the most amongst managerial approaches. Despite this idea, studies on strategic planning and firm performance have remained divergent, and most of them emphasized the relationship to financial performance. Thus, the objective of the study was to investigate the relationship between departmental strategic planning and both financial and non-financial organizational performance. A cross-sectional design was employed, and data were collected from 301 top-level and middle-level managers drawn from 25 large private manufacturing companies in Tigray, Ethiopia. These companies were included in the study using a census approach, while purposive sampling was applied to select knowledgeable managerial respondents. Data were gathered through a structured questionnaire using a five-point Likert scale. Structural equation modeling (SEM) was employed for data analysis. The measurement model demonstrated acceptable levels of reliability (α > 0.70), convergent validity (AVE > 0.5, CR > 0.9, SRW > 0.70), and discriminant validity (AVE > r2). The findings reveal that departmental strategic planning is significantly and positively associated with both financial performance (β = 0.78, p

Keywords: Departmental; Likert scale; Manufacturing companies; Structural equation modeling; Tigray (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s43546-025-00969-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:snbeco:v:5:y:2025:i:12:d:10.1007_s43546-025-00969-7

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-025-00969-7

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().