Does it pay to plan?: Strategic planning and financial performance

Gregory A. Baker and Joel K. Leidecker
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Gregory A. Baker: Food and Agribusiness Institute, Santa Clara University,, 500 El Camino Real, Santa Clara, CA 95053-0396., E-mail: gbaker@scu.edu, Postal: Food and Agribusiness Institute, Santa Clara University,, 500 El Camino Real, Santa Clara, CA 95053-0396., E-mail: gbaker@scu.edu
Joel K. Leidecker: Food and Agribusiness Institute, Santa Clara University,, 500 El Camino Real, Santa Clara, CA 95053-0396., E-mail: gbaker@scu.edu, Postal: Food and Agribusiness Institute, Santa Clara University,, 500 El Camino Real, Santa Clara, CA 95053-0396., E-mail: gbaker@scu.edu

Agribusiness, 2001, vol. 17, issue 3, 355-364

Abstract: Previous research on the effects of strategic planning on firm performance has yielded inconsistent and inconclusive findings. In this study, we use a recently validated measurement model of strategic planning to examine the planning-performance relationship in the California processing tomato industry. Results indicate a strong correlation between the degree of emphasis firms place on strategic planning and financial performance. Moreover, several specific strategic planning tools, specifically, the use of a mission statement, long-term goals, and ongoing evaluation, were also more heavily emphasized by high-performing firms. These results suggest that strategic planning does pay off in terms of improved financial performance and that some planning tools may have a significant impact. [Econ-Lit citations: L100, L660] © 2001 John Wiley & Sons, Inc.

Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:17:y:2001:i:3:p:355-364

DOI: 10.1002/agr.1021

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