Structure As A Predictor Of Strategic Planning Use

Abstract

This article provides: (1) support for the configurational approach in the study of organizations by empirically deriving ideal organizational factors, and (2) insights into the interrelationship between organization structure and strategic planning use. Three structural factors are identified resembling Mintzbergs (1993, 1979) machine, diversified and adhocratic ideal forms. Through a regression analysis these factors were found to be significantly and positively related to the use of strategic planning. The model formed explained approximately 48% of variance in the use of stragtegic planning in participating firms. Results also indicate tha thte emphasis on individual planning tools (mission/vision/ long and short-term objectives, action plans and policies) varies with the intensity of particular factors.