Using information-processing theory to understand planning/performance relationships in the context of strategy

Abstract

This study reveals the importance of viewing planning processes within the context of strategic orientation. Information-processing theory is used to examine the differences in planning processes given variable strategy content in the banking industry. Findings suggest that banks implementing different strategies require their planning systems to focus on different kinds and amounts of information. Moreover, the relationship between planning and bank performance is clarified when information requirements of a specific strategy are considered. It appears the strategy moderates the relationship between planning and performance. Copyright © 1999 John Wiley & Sons, Ltd.

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