Title: Measuring the effectiveness of strategic planning: proposing a second order operationalization

Author (s):: Batra S.; Sharma S.; Dixit M.; Vohra N.

Journal: Measuring Business Excellence

Month and Year: August 2016

Abstract: 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. © 2016, © Emerald Group Publishing Limited.

Document Type: Article

DOI: https://doi.org/10.1108/MBE-09-2014-0031