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

Author

Listed:
  • Safal Batra

    (Strategic Management, Indian Institute of Management Kashipur, Kashipur, India)

  • Sunil Sharma
  • Mukund R Dixit

    (Business Policy, Indian Institute of Management Ahmedabad, Ahmedabad, India)

  • Neharika Vohra

    (Organizational Behavior, Indian Institute of Management Ahmedabad, Ahmedabad, India)

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.

Suggested Citation

  • Safal Batra & Sunil Sharma & Mukund R Dixit & Neharika Vohra, 2018. "Does strategic planning determine innovation in organizations? A study of Indian SME sector," Australian Journal of Management, Australian School of Business, vol. 43(3), pages 493-513, August.
    • Handle: RePEc:sae:ausman:v:43:y:2018:i:3:p:493-513
    DOI: 10.1177/0312896217734893
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    References listed on IDEAS

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    More about this item

    Keywords

    Commitment to learning; innovation; strategic planning; structural flexibility;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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