Does corporate planning pay off?: New Study of Maik Hamann, Oliver Halw and Thomas Guenther

Does corporate planning pay off?

Managers who may doubt whether planning is still fruitful in turbulent times obtain a clear answer from our study: Yes, it is.

Maik Hamann, Oliver Halw and Thomas Guenther analyze in a meta-analysis which will be recently published in the Strategic Management Journal 183 independent study samples, 84 of which are examined for the first time. Corporate planning is definitely correlated with organizational performance. The effect sizes are stable over time and for different types of planning. However, the effect of corporate planning on performance depends on the organizational context. Manufacturing firms benefit more than nonmanufacturing firms, and larger firms benefit more than smaller firms. Organizations in countries with high uncertainty avoidance show larger effects in relation to those in countries with low uncertainty avoidance. Finally, organizations facing high environmental uncertainty show higher effects of corporate planning than organizations in more stable environments. However, the identified effects are conditional on the type of measurement of performance and corporate planning.

Link to the study: https://doi.org/10.1002/smj.3476