Relational governance, strategic planning and firm performance
Marketing Intelligence & Planning
ISSN: 0263-4503
Article publication date: 23 August 2021
Issue publication date: 25 October 2021
Abstract
Purpose
While there is growing attention to the efficacy of business and political ties in emerging economies, there are not many studies explicitly examining the relations of business and political ties to small and medium enterprises (SME) strategy formation in emerging economies outside of the East-Asian setting. This study attempts to refine the facilitating role of formal strategic planning (FSP) in the relation of business and political ties to financial firm performance.
Design/methodology/approach
Structural equation modeling and conditional mediation analyses were used.
Findings
The authors show that while business ties are positively related to FSP, political ties are negatively associated with it. In addition, this study provides empirical evidence that FSP positively mediates the relation of business ties to financial performance. Conversely, there exists a negative indirect relationship between political ties and financial performance. This study shows that the demand uncertainty negatively moderates the relation of FSP to financial performance.
Originality/value
The findings offer noteworthy inferences for firm managers and policy makers, who should evaluate the benefits and costs carried by business and political ties.
Keywords
Acknowledgements
This work was supported by the American University of Sharjah (grant number EFRG18-AAB-SBA-80).
Citation
Yeniaras, V. and Kaya, I. (2021), "Relational governance, strategic planning and firm performance", Marketing Intelligence & Planning, Vol. 39 No. 8, pp. 1104-1120. https://doi.org/10.1108/MIP-04-2021-0122
Publisher
:Emerald Publishing Limited
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