The Role of Planning in Small Firms: Empirical Evidence from a Service Industry

Peter Risseeuw and Enno Masurel

Small Business Economics, 1994, vol. 6, issue 4, 313-22

Abstract: The relation between planning behavior and performance is analyzed for a large number of small real estate firms in the Netherlands. A firm's planning behavior appears to be influenced by the way it perceives its environment (in terms of complexity and dynamics) as well as its own characteristics (size, age and activities). The explanation of performance is dominated by a firm's size and the nature of its activities. Hardly any effect of planning on a firm's performance is found, though it appears that in an environment perceived as highly dynamic, planning is merely counterproductive. Copyright 1994 by Kluwer Academic Publishers

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:6:y:1994:i:4:p:313-22

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