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Strategic Planning and Financial Performance in the Food Processing Sector

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  • Gregory A. Baker

Abstract

Research on the impact of formal strategic planning on firm performance has yielded mixed results. In this study, approximately 200 executives in five food processing industries were surveyed to examine the relationship between formal strategic planning and financial performance. A multiple indicator measure of strategic planning was assessed using confirmatory factor analysis. Results of the strategic planning-performance model indicate that use of strategic planning tools has a positive impact on financial performance as measured by the 3-year average pretax return on assets.

Suggested Citation

  • Gregory A. Baker, 2003. "Strategic Planning and Financial Performance in the Food Processing Sector," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 470-482.
    • Handle: RePEc:oup:revage:v:25:y:2003:i:2:p:470-482.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00150
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    References listed on IDEAS

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    1. J. Scott Armstrong, 1982. "The value of formal planning for strategic decisions: Review of empirical research," Strategic Management Journal, Wiley Blackwell, vol. 3(3), pages 197-211, July.
    2. Kenneth F. Harling & Thomas F. Funk, 1987. "Competitive Strategy for Farm Supply and Grain Elevator Business," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(5), pages 1047-1055.
    3. 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.
    4. Gregory A. Baker & Joel K. Leidecker, 2001. "Does it pay to plan?: Strategic planning and financial performance," Agribusiness, John Wiley & Sons, Ltd., vol. 17(3), pages 355-364.
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    Cited by:

    1. Brinckmann, Jan & Grichnik, Dietmar & Kapsa, Diana, 2010. "Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning-performance relationship in small firms," Journal of Business Venturing, Elsevier, vol. 25(1), pages 24-40, January.
    2. Abbas Mohammed Hussein & Mohammed Mustafa Ahmed & Mohamed Yahya Mahmoud Khudari, 2021. "The Impact of Strategic Planning in the University’s Competitiveness According to NIAS," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, September.

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