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

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.

Citation

Batra, S., Sharma, S., Dixit, M. and Vohra, N. (2016), "Measuring the effectiveness of strategic planning: proposing a second order operationalization", Measuring Business Excellence, Vol. 20 No. 3, pp. 15-25. https://doi.org/10.1108/MBE-09-2014-0031