Does strategic planning determine innovation in organizations? A study of Indian SME sector

Safal Batra, Sunil Sharma, Mukund R Dixit and Neharika Vohra
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Safal Batra: Strategic Management, Indian Institute of Management Kashipur, Kashipur, India
Mukund R Dixit: Business Policy, Indian Institute of Management Ahmedabad, Ahmedabad, India
Neharika Vohra: Organizational Behavior, Indian Institute of Management Ahmedabad, Ahmedabad, India

Australian Journal of Management, 2018, vol. 43, issue 3, 493-513

Abstract: While some researchers argue that strategic planning assists new product development and can be viewed as a framework for innovation, others believe that it restricts creativity and innovation. Despite a literary appreciation that strategic planning is linked to innovation, the nature of this relationship remains ambiguous. In this study, we argue that this relationship is context dependent and contingent on other organizational factors. Data for this study were collected by administering standardized survey questionnaires to entrepreneurs or other senior executives of small and medium businesses in India. Quantitative analysis of data obtained from 162 small- and medium-sized enterprises (SMEs) in the manufacturing sector reveals a positive relationship between strategic planning and innovation. This study also establishes a significant positive moderating role of commitment to learning on the relationship between strategic planning and innovation. Implications for theory and practice are discussed.

Keywords: Commitment to learning; innovation; strategic planning; structural flexibility (search for similar items in EconPapers)
JEL-codes: L26 M10 O31 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:43:y:2018:i:3:p:493-513

DOI: 10.1177/0312896217734893

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