Strategic Planning, Organisation Characteristics, and Firm Performance: A Review of the Literature

Abstract

organizational characteristics and firm performance. The anchoring theories for this study are: stakeholder management theory, resource-based view and dynamic capabilities theory. The Stakeholder Management Theory notes that an organization is a social construct made of collaboration of different stakeholders. A corporation is the center of a network of stakeholders, a complex system of information and resources. (Mersland and Strom, 2009) The Resource Based Theory (RBT), which is also referred to as the resource-based view of the company, provides a theoretical basis for understanding the competitive edge in companies and their long-term sustainability. Scholars have hypothesized that, if companies have valuable, rare and inimitable (VRIN) resources, they are able to attain competitive advantage by executing new value adding approaches that competitors cannot easily duplicate. Dynamic capacity shows organizational capacity to produce or modify the business resource base purposefully. Dynamic capabilities offer the company the ability to integrate internal and external capabilities and reshape them in order to address the ever-changing dynamic world. From the extensive study of the literature a conceptual framework has been proposed. Here, the role of independent variable has been played by strategic planning and firm performance has acted as dependent variable. To Abstract: The association between strategic planning, nature of organizations and performance of companies is the main primary objective of this paper. Main components of strategic planning like vision, mission, objective setting has been studied over here. Current studies from this field have been observed for reference. Other factors like years of operations, nature of the firm, size of the firm, ownership nature and other details have further studied. This study aims to capture the research gap present in this area. After referring to the numerous studies this study suggests the need of studying organizational characteristics as a moderator variable. This study has proposed a conceptual framework for carrying out research by academicians and interested researchers of this domain. All the propositions suggested here will be immensely beneficial for the managers to prepare strategies and managing their firms.