Measuring the effectiveness of strategic planning: proposing a second order operationalization
Date
2016Author
Sharma, Sunil
Dixit, Mukund R.
Vohra, Neharika
Batra, Safal
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Purpose: The purpose of this paper is to demonstrate a multi-dimensional second-order operationalization of strategic planning, to advance the understanding of this construct. Design/methodology/approach: Data on the strategic planning construct were collected using survey questionnaire administered to 123 small and medium-sized manufacturing enterprises (SMEs) in India. Findings: The findings clearly reveal that the strategic planning construct can be effectively operationalized as a second-order multi-dimensional construct. Research limitations/implications: Data for this study have been collected primarily from SMEs of manufacturing firms. Further investigation in other kinds of firms may help in the enhancement of the construct. Originality/value: Scholars have long called for using second-order constructs in strategy research. Operationalizing multi-dimensional constructs as unidimensional leads to inaccurate results and interpretations. By demonstrating a second-order operationalization of strategic planning, the authors illustrate better ways of operationalizing a construct. At the same time, this operationalization should help in better understanding of the implications of strategic planning on firm performance.
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