Strategic Planning and Corporate Performance Relationship in Small Business Firms: Evidence from a Middle East Country Context

  •  Jehad Aldehayyat    
  •  Naseem Twaissi    


This research aims to identify strategic planning system characteristics in Jordanian small industrial firms and to
examine its relationship with corporate performance. This is one of the first studies to examine such questions.
Existing literature, both theoretical and empirical, is examined to identify the state of knowledge associated with
this question in both developed and middle East countries. The empirical research was co-ordinated via a survey
of small Jordanian industrial publicly quoted firms. A questionnaire survey of these firms yielded a 52.1 per cent
response rate. The results of the survey provided a rich source of data in relation to a variety of practices
associated with strategic planning in small Jordanian industrial firms. Key findings provided empirical evidence
about the involvement of top and line management in planning, the use of environmental screening, and the use
of strategy tools and techniques. Furthermore, the study found a strong positive relationship between strategic
planning and corporate performance. This research gives a new empirical evidence about the value of strategic
planning to corporate performance from Middle East countries context.

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