IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v222y2020ics0925527319303299.html
   My bibliography  Save this article

Dynamic strategic planning and firm competitive performance: A conceptualization and an empirical test

Author

Listed:
  • Ojha, Divesh
  • Patel, Pankaj C.
  • Sridharan, Sri V.

Abstract

Using the dynamic capabilities and flexible planning framework, we propose a Dynamic strategic planning (DSP) scale. We test for the nomological validity of Dynamic strategic planning using operational capabilities (OC) as a mediator. Using a survey of 267 US-based SMEs, we test for the mediation effect of operational capabilities (disaster immunity, innovation, product quality, delivery reliability, process flexibility, and cost leadership) between Dynamic strategic planning scale (clarity of vision, understanding of core capabilities, selecting strategic targets, shared responsibility, and taking action) and financial performance. Supporting the nomological argument that Dynamic strategic planning will be less efficacious directly and would be more effective when it is manifested through operational capabilities, the findings show that Dynamic strategic planning has a negative but non-significant association with financial performance; however, it positively influences financial performance through operational capabilities. Implications of the results are discussed with theoretical contributions and future research directions.

Suggested Citation

  • Ojha, Divesh & Patel, Pankaj C. & Sridharan, Sri V., 2020. "Dynamic strategic planning and firm competitive performance: A conceptualization and an empirical test," International Journal of Production Economics, Elsevier, vol. 222(C).
    • Handle: RePEc:eee:proeco:v:222:y:2020:i:c:s0925527319303299
    DOI: 10.1016/j.ijpe.2019.09.030
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527319303299
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2019.09.030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yusuf, Y. Y. & Sarhadi, M. & Gunasekaran, A., 1999. "Agile manufacturing:: The drivers, concepts and attributes," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 33-43, May.
    2. Richard B. Robinson & John A. Pearce, 1983. "The impact of formalized strategic planning on financial performance in small organizations," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 197-207, July.
    3. Forrant, Robert & Flynn, Erin, 1999. "Skills, Shop-Floor Participation and the Transformation of Brimfield Precision: Lessons for the Revitalization of the Metal-Working Sector," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(1), pages 167-188, March.
    4. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    5. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
    6. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    7. Suma S. Athreye, 2005. "The Indian software industry and its evolving service capability," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 393-418, June.
    8. Noel Capon & John U. Farley & Donald R. Lehmann & James M. Hulbert, 1992. "Profiles of Product Innovators Among Large U.S. Manufacturers," Management Science, INFORMS, vol. 38(2), pages 157-169, February.
    9. Kevin Zheng Zhou & Fang Wu, 2010. "Technological capability, strategic flexibility, and product innovation," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 547-561, May.
    10. Carlo Salvato, 2003. "The Role of Micro‐Strategies in the Engineering of Firm Evolution," Journal of Management Studies, Wiley Blackwell, vol. 40(1), pages 83-108, January.
    11. Jaana Woiceshyn & Urs Daellenbach, 2005. "Integrative capability and technology adoption: evidence from oil firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(2), pages 307-342, April.
    12. Nicolai J. Foss, 1996. "Knowledge-Based Approaches to the Theory of the Firm: Some Critical Comments," Organization Science, INFORMS, vol. 7(5), pages 470-476, October.
    13. Bruce R. Barringer & Allen C. Bluedorn, 1999. "The relationship between corporate entrepreneurship and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 421-444, May.
    14. Camuffo, Arnaldo & Volpato, Giuseppe, 1996. "Dynamic Capabilities and Manufacturing Automation: Organizational Learning in the Italian Automobile Industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(3), pages 813-838.
    15. Gianmario Verona & Davide Ravasi, 2003. "Unbundling dynamic capabilities: an exploratory study of continuous product innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(3), pages 577-606, June.
    16. Yan, Tingting & Azadegan, Arash, 2017. "Comparing inter-organizational new product development strategies: Buy or ally; Supply-chain or non-supply-chain partners?," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 21-38.
    17. Jeffrey S. Bracker & Barbara W. Keats & John N. Pearson, 1988. "Planning and financial performance among small firms in a growth industry," Strategic Management Journal, Wiley Blackwell, vol. 9(6), pages 591-603, November.
    18. Sharifi, H. & Zhang, Z., 1999. "A methodology for achieving agility in manufacturing organisations: An introduction," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 7-22, May.
    19. Henry Mintzberg, 1991. "Learning 1, planning 0 reply to Igor Ansoff," Strategic Management Journal, Wiley Blackwell, vol. 12(6), pages 463-466, September.
    20. Richard Makadok, 2001. "Toward a synthesis of the resource‐based and dynamic‐capability views of rent creation," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 387-401, May.
    21. Christoph Zott, 2003. "Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 97-125, February.
    22. H. I. Ansoff, 1964. "A Quasi-Analytic Approach to the Business Strategy Problem," Management Science, INFORMS, vol. 0(1), pages 67-77, June.
    23. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    24. Paulo N. Figueiredo, 2003. "Learning, capability accumulation and firms differences: evidence from latecomer steel," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(3), pages 607-643, June.
    25. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    26. Shin, Hojung & Lee, Jae-Nam & Kim, DaeSoo & Rhim, Hosun, 2015. "Strategic agility of Korean small and medium enterprises and its influence on operational and firm performance," International Journal of Production Economics, Elsevier, vol. 168(C), pages 181-196.
    27. Gary C. Moore & Izak Benbasat, 1991. "Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation," Information Systems Research, INFORMS, vol. 2(3), pages 192-222, September.
    28. Robert M. Grant, 2003. "Strategic planning in a turbulent environment: evidence from the oil majors," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 491-517, June.
    29. Craig, Justin B. & Dibrell, Clay & Garrett, Robert, 2014. "Examining relationships among family influence, family culture, flexible planning systems, innovativeness and firm performance," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 229-238.
    30. Dibrell, Clay & Craig, Justin B. & Neubaum, Donald O., 2014. "Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance," Journal of Business Research, Elsevier, vol. 67(9), pages 2000-2007.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hang T. T. Nguyen & Hanh Song Thi Pham & Susan Freeman, 2023. "Dynamic capabilities in tourism businesses: antecedents and outcomes," Review of Managerial Science, Springer, vol. 17(5), pages 1645-1680, July.
    2. Francisco Musiello-Neto & Orlando Lima Rua & Mario Arias-Oliva & Amélia Ferreira Silva, 2021. "Open Innovation and Competitive Advantage on the Hospitality Sector: The Role of Organizational Strategy," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    3. Wissal Affes & Habib Affes, 2022. "Business Model and Firm Performance in Tunisian Firms: a Mediated Moderation Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2822-2839, December.
    4. Daniel Mandel Gandrita & Ana Gandrita & David Pascoal Rosado & Manuel do Carmo, 2023. "Environmental Sustainability for Strategic Planning Effectiveness and Organizational Improvement," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    5. Shervin Zakeri & Dimitri Konstantas & Naoufel Cheikhrouhou, 2022. "The Grey Ten-Element Analysis Method: A Novel Strategic Analysis Tool," Mathematics, MDPI, vol. 10(5), pages 1-22, March.
    6. Mehmanpazir, Farhad & Khalili-Damghani, Kaveh & Hafezalkotob, Ashkan, 2022. "Dynamic strategic planning: A hybrid approach based on logarithmic regression, system dynamics, Game Theory and Fuzzy Inference System (Case study Steel Industry)," Resources Policy, Elsevier, vol. 77(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eriksson, Taina, 2014. "Processes, antecedents and outcomes of dynamic capabilities," Scandinavian Journal of Management, Elsevier, vol. 30(1), pages 65-82.
    2. Ouakouak, Mohamed Laid & Ouedraogo, Noufou & Mbengue, Ababacar, 2014. "The mediating role of organizational capabilities in the relationship between middle managers’ involvement and firm performance: A European study," European Management Journal, Elsevier, vol. 32(2), pages 305-318.
    3. Mohamed Laid Ouakouak, 2018. "Does a strategic planning process that combines rational and adaptive characteristics pay off ? Evidence from European firms," Australian Journal of Management, Australian School of Business, vol. 43(2), pages 328-349, May.
    4. Claudimar Pereira da Veiga & Cassia Rita Pereira da Veiga & Mônica Maier Giacomini & Heitor Takashi Kato & Jansen Maia Del Corso, 2015. "Evolution of Capabilities in the Discovery Cycle of an Innovation in the Pharmaceutical Market," International Review of Management and Marketing, Econjournals, vol. 5(3), pages 141-153.
    5. Cristina Fernandes & João J. Ferreira & Mário L. Raposo & Cristina Estevão & Marta Peris-Ortiz & Carlos Rueda-Armengot, 2017. "The dynamic capabilities perspective of strategic management: a co-citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(1), pages 529-555, July.
    6. Philipp Nitzsche & Bernd W. Wirtz & Vincent Göttel, 2016. "Innovation Success In The Context Of Inbound Open Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-38, February.
    7. Ritu Singh & Parikshit Charan & Manojit Chattopadhyay, 2019. "Dynamic capabilities and responsiveness: moderating effect of organization structures and environmental dynamism," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 301-319, December.
    8. Ekom Etim Akpan & Eluka Johnny & Waribugo Sylva, 2022. "Dynamic Capabilities and Organizational Resilience of Manufacturing Firms in Nigeria," Vision, , vol. 26(1), pages 48-64, March.
    9. Makkonen, Hannu & Pohjola, Mikko & Olkkonen, Rami & Koponen, Aki, 2014. "Dynamic capabilities and firm performance in a financial crisis," Journal of Business Research, Elsevier, vol. 67(1), pages 2707-2719.
    10. Waleczek, Peter & von den Driesch, Till & Flatten, Tessa C. & Brettel, Malte, 2019. "On the dynamic bundles behind operations management and research and development," European Management Journal, Elsevier, vol. 37(2), pages 175-187.
    11. Maren Schlömer & Hendrik Wilhelm & Indre Maurer & Frank Wallau, 2013. "Die Wirkung dynamischer Fähigkeiten auf die Effektivität und Effizienz operativer Prozesse," Schmalenbach Journal of Business Research, Springer, vol. 65(3), pages 214-243, May.
    12. Oliver Schilke & Bernd W. Wirtz, 2008. "Allianzfähigkeit — Eine Analyse zur Operationalisierung und Erfolgswirkung im Kontext von F&E-Allianzen," Schmalenbach Journal of Business Research, Springer, vol. 60(5), pages 479-516, August.
    13. Tobias Knabke & Sebastian Olbrich, 2018. "Building novel capabilities to enable business intelligence agility: results from a quantitative study," Information Systems and e-Business Management, Springer, vol. 16(3), pages 493-546, August.
    14. Ortiz García Navas, Beatriz & Donate Manzanares, Mario Javier & Guadamillas Gómez, Fátima, 2019. "Social capital as a theoretical approach in Strategic Management," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    15. Hafeez, Salima & Rana, Asif Mehmood & Chaudhry, Rashid Mehmood & Khan, Muhammad Aslam & Ahmad, H.Mushtaq & Rehman, Kashif Ur, 2011. "Perspectives of entrepreneurial orientation with the quality of life," MPRA Paper 53860, University Library of Munich, Germany.
    16. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    17. Haarhaus, Tim & Liening, Andreas, 2020. "Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    18. Cleverton Rodrigues Fernandes & André Gustavo Carvalho Machado, 2019. "Technology Transfer Capability: development dynamics in higher education institutions," Brazilian Business Review, Fucape Business School, vol. 16(1), pages 1-15, January.
    19. Heimeriks, K. & Duysters, G.M. & Vanhaverbeke, W.P.M., 2004. "The evolution of alliance capabilities," Working Papers 04.20, Eindhoven Center for Innovation Studies.
    20. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:222:y:2020:i:c:s0925527319303299. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.