Strategic planning affects an organization’s business performance by impacting its financial performance indicators such as profitability, premium growth, and claims ratio; and non-financial performance measures such as competitive edge, operations efficiency, market share growth, reduction in employee turnover, development of new products, cancellation policies, lead time in claims payment, objective fulfillment, organization survival, and responsiveness, among others.
The following are empirical studies from across the globe assessing the impact of strategic planning on the performance of business organizations.
Assessing the role of strategic planning & transformational leadership on MNCs’ organizational performance
This study explored the impact of strategic planning on the performance of multinational corporations (MNCs) in the manufacturing sector in Indonesia. In particular, the study sought to address the following objectives: to establish the effect of strategic planning on transformational leadership in the target MNCs, to assess the effect of transformational leadership on the performance of target MNCs, to determine the effect of strategic planning on organizational performance, and lastly, to examine the mediating role of transformational leadership on the relationship between strategic planning and the performance of target MNCs (Dini et al., 2025).
The target population included MNCs located and operating in the Riau Islands, Indonesia. A sample size of 216 respondents was selected to participate in the study, including directors, general managers, senior managers, and managers. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentages. Structural Equation Modeling (SEM) was employed to assess the relationship between study variables. The findings were presented in suitable tables as deemed fit (Dini et al., 2025).
The findings revealed that strategic planning had a positive and significant impact on transformational leadership; transformational leadership had a positive and significant impact on organizational performance; strategic planning had a positive and significant impact on organizational performance; and transformational leadership plays a positive and significant mediating role in the relationship between strategic planning and performance of MNCs. In addition, the results indicated that 62% variance in performance of target MNCs was accounted for by strategic planning and transformational leadership (Dini et al., 2025).
Effect of strategic planning on financial performance of public hospitals in Tharaka Nithi County, Kenya
This study explored the effect of strategic planning (financial goal setting, budgeting alignment, strategy implementation, and performance evaluation) on the financial performance of public hospitals in Tharaka Nithi County. The target population included public hospitals operating in Tharaka Nithi County. 120 respondents from the target hospitals were selected to participate in the study. These included procurement officers, finance officers, section heads, and hospital management board members. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. Multiple regression analysis was employed to assess the effect of strategic planning on the financial performance of the target hospitals. The results were presented in tables as deemed appropriate (Mukuru et al., 2025).
The findings of regression analysis indicated that strategic planning accounted for 25.4% variance in financial performance of the target hospitals (Mukuru et al., 2025).
Strategic planning and organizational performance: an empirical study on the manufacturing sector
This study explored the impact of strategic planning on the performance of manufacturing firms in Iraq. The study sought to achieve the following objectives: to establish the effect of environmental scanning on the financial and non-financial performance of manufacturing firms in Iraq; to establish the effect of management participation on the financial and non-financial performance of manufacturing firms in Iraq; to find out the effect of planning formality on the financial and non-financial performance of manufacturing firms in Iraq; and lastly, to assess the effect of strategy technique on the financial and non-financial performance of manufacturing firms in Iraq (Mousa et al., 2024).
The target population included manufacturing firms in Iraq. A sample size of 360 respondents was selected to participate in the study. This included individuals serving in managerial positions in the target firms. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics such as frequency and percentage. Pearson correlation analysis was done to determine the relationship between the variables under study. Multiple regression analysis was done to assess the effect of the independent variables (environmental scanning, management participation, planning formality, and strategy technique) on the dependent variables (financial and non-financial performance of the target firms). The results were presented using tables as deemed appropriate (Mousa et al., 2024).
The findings of correlation analysis showed that environmental scanning, management participation, planning formality, and strategy technique all had a positive and significant association with the financial and non-financial performance of manufacturing firms in Iraq. The results of multiple regression analysis indicated 48.5% variance in the financial performance of the target firms. In particular, the results of regression standardized coefficients revealed that when all factors are held constant: environmental scanning explained 25.3% variance; management participation explained 10.8% variance in financial performance of the target firms; planning formality explained 31.5% variance in financial performance of the target firms; and lastly, strategy technique explained 59.6% variance in financial performance. This means that strategy technique had the highest effect on the financial performance of the target firms, followed by planning formality, then environmental scanning, and lastly, management participation (Mousa et al., 2024).
Furthermore, the findings of multiple regression analysis revealed that 22.7% variance in non-financial performance of the target firms was accounted for by the predictor variables, including environmental scanning, management participation, planning formality, and strategy technique. Specifically, the results of regression standardized coefficients indicated that, with all factors remaining at a constant, environment scanning explained 46.2% variance in non-financial performance of the target firms; management participation explained 9.5% variance in non-financial performance of the target firms; planning formality explained 9.9% variance in non-financial performance of the target firms; while strategy technique explained 4.6% variance in non-financial performance of the target firms. This means that environment scanning had the highest effect on the nonfinancial performance of the target firms, followed by planning formality, then management participation, and lastly strategy technique (Mousa et al., 2024).
Measuring the impact of strategic planning on organizational performance using the PLS approach
This study explored the impact of strategic planning on the performance of industrial companies operating in different sectors in Algeria. The specific objectives of the study included the following: to determine the effect of information use on financial indicators of target companies; to find out the effect of information use on non-financial indicators; to establish the effect of decision-making elements on financial indicators of the target companies; to assess the effect of decision-making elements on non-financial indicators; to examine the effect of implementing strategic planning on financial indicators of the companies; to establish the effect of implementing strategic planning on non-financial indicators of the target companies; to determine the effect of strategic control on corporate financial indicators; and to assess the effect of strategic control on companies’ non-financial indicators (Oumakhlouf & Kherbachi, 2023).
The target population included 46 companies operating in different industries (construction materials, wood processing, chemistry & plastic, metallurgy, textile, food industry, and miscellaneous) in Algeria. A sample size of 84 respondents was selected from the target companies to participate in the study. These included senior-level managers such as human resource managers, directors, and CEOs. Primary data was collected using a questionnaire. Descriptive statistics such frequency and percentage were used to analyze the collected data. The Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used to establish associations between variables under study. The results were presented using suitable tables as required (Oumakhlouf & Kherbachi, 2023).
The results of PLS-SEM analysis indicated the following dimensions of strategic planning had no significant effect on the financial performance of the target companies: use of collected information had an insignificant impact on financial indicators of the target companies; use of collected information had a positive and significant impact on non-financial indicators of the companies; decision-making elements had an insignificant impact on the financial performance of the companies; decision-making elements had a positive and significant impact on non-financial indicators of the companies; implementation of strategic planning had a positive and significant impact on companies’ financial indicators; implementation of strategic planning had an insignificant impact on companies’ non-financial indicators; and lastly, strategic control had an insignificant impact on both the companies’ financial and non-financial indicators. These findings indicate that strategic planning has a positive impact on the performance of target companies (Oumakhlouf & Kherbachi, 2023).
Strategic planning model and its impact on the development of micro-enterprises in the services sector in Mexico
This study explored the effect of strategic planning dimensions (business philosophy, key internal & external factors, SWOT analysis, situational diagnosis, and strategic control) on the performance of micro-enterprises in Hidalgo, Mexico. The target population included 174 micro-enterprises in the service sector in Hidalgo, Mexico. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. Regression analysis was done to assess the effect of independent variables (strategic planning dimensions) on the dependent variable (development of the target micro-enterprises). The findings were presented using tables as required (Cruz et al., 2023).
The results of the regression analysis standardized coefficients showed that with all factors remaining at a constant: business philosophy was responsible for 29.4% variance in enterprise performance; internal factors were responsible for 34.2% variance in enterprise performance; external factors were responsible for 41.4% variance in enterprise performance; SWOT was responsible for 7.3% variance in enterprise performance; situational diagnosis was responsible for 1% variance in enterprise performance; objectives were 27.6% variance in enterprise performance; and lastly, strategic control was responsible for 6.2% variance in enterprise performance. So when we arrange these dimensions starting with the one with the highest impact to the least, we get external factors, internal factors, business philosophy, objectives, SWOT, strategic control, and lastly, situational diagnosis (Cruz et al., 2023).
The results of multiple regression analysis showed that 66.4% variance in micro-enterprise development and performance in Mexico was accounted for by the combined dimensions of strategic planning, including business philosophy, key internal & external factors, SWOT analysis, situational diagnosis, and strategic control (Cruz et al., 2023).
Effect of strategic planning on the performance of small- and medium-scale enterprises in Nigeria: evidence from Delta State
This study explored the impact of strategic planning on the performance of SMEs in Delta State, Nigeria. In particular, the study addressed the following objectives: to establish the effect of strategic plan implementation on market share growth of target SMEs, to find out the effect of strategy plan creation on SME profit margin, and to assess the effect of cross-functional decision evaluation on customer satisfaction (Chukwuka & Ese, 2022).
The target population included all the SMEs operating in Delta State, Nigeria. A sample size of 133 respondents was used in the present study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. Multiple regression analysis was employed to establish the effect of independent variables on the dependent variable. The results were presented using tables as required (Chukwuka & Ese, 2022).
The findings of regression analysis indicated the following: 98% variance in growth of market share was as a result of strategy plan implementation; 97.4% variance in SME profit was accounted for by strategy plan creation. The results of correlation analysis indicated that cross-functional decision evaluation positively affected customer satisfaction in the target SMEs (Chukwuka & Ese, 2022).
Analysis of influence of strategic planning practices on organization performance: a case of Baringo County government, Kenya
This study investigated the impact of strategic planning practices on performance of Baringo Count Government, Kenya. In particular, the study sought to achieve the following objectives: to explore the effect of resource mobilization strategies on performance of Baringo County Government; to find out the effect of resource allocation strategies on performance of Baringo County Government; to establish the effect of leadership strategies on performance of Baringo County Government; to examine the effect of risk management strategies on performance of Baringo County Government (Kemboi & Misango, 2021).
The target population included 4178 staff members employed at the Baringo County Government. A sample size of 92 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. Correlation analysis was employed to determine the relationship between the study variables. Multiple regression analysis was done to establish the effect of independent variables (resource mobilization, resource allocation, leadership strategies, and risk management strategies) on the dependent variable (performance of the Baringo County government). The findings were presented using tables as required (Kemboi & Misango, 2021).
The results of correlation analysis indicated that resource mobilization strategies had a positive and significant association with the performance of the Baringo County Government; resource allocation strategies had a positive and significant association with the target organization; leadership strategies had a positive and significant association with the performance of the target organization; and risk management strategies had a positive and significant effect on the performance of the county government (Kemboi & Misango, 2021).
The findings of multiple regression analysis revealed that 76.3% of the variance in the performance of the Baringo County government was caused by the combined effect of the independent variables, including resource mobilization strategies, resource allocation strategies, leadership strategies, and risk management strategies. The results of regression standardized coefficients indicated that resource mobilization strategies contributed to 21.2% variance in the performance of Baringo County Government; resource allocation strategies contributed to 3.5% variance in the performance of the target county; and risk management strategies contributed to 53.2% variance in the performance of the county (Kemboi & Misango, 2021).
Impact of strategic planning on organizational performance of the University of Uyo
This study explored the impact of strategic planning on performance of Uyo University in Nigeria. The target population included 134 principal officer staff members of the university. The specific objectives of the study included the following: to determine the effect of the mission statement on the performance of the university; to find out the effect of policies & procedures on the performance of the university; and lastly, to establish the effect of resources on the performance of the university. A sample size of 100 respondents was selected to participate in the study. Data was collected using a questionnaire. The collected data was analyzed using descriptive statistics, for example, frequency and percentage. Regression analysis was done to determine the effect of the independent variables on the dependent variable. The results were presented in suitable tables as deemed fit (Efi et al., 2018).
The findings of the multiple regression analysis indicated that 18.7% of the variance in the performance of the university was caused by the predictor variables, including mission, policies & procedures, and resources. The result of the regression standardized coefficient indicated that the mission was responsible for 24.2% variance in the performance of the university, while policies & procedures were responsible for 27.2% variance in the performance of the university. Thus, policies and procedures had a higher impact on the performance of the university, followed by the mission statement. On the other hand, resources were shown to have a negative and insignificant impact on the performance of the university (Efi et al., 2018).
Effect of strategic planning on organizational performance and profitability
This study explored the impact of strategic planning on organizational performance in Zenith Bank, Wari metropolis, in Nigeria. The specific objectives of the study were to determine the effect of strategic planning on organizational performance, to find out the effect of managerial, environmental, and organizational factors on strategic planning intensity, and lastly, to establish the relationship between strategic planning and organizational survival (Monye & Ibegbulem, 2018).
Given that this was a case study research, 100 respondents were selected from the staff of Zenith Bank to participate in the study. Data collection was carried out using a questionnaire. The collected data was analyzed using descriptive statistics, including frequency and percentage. A chi-square statistical model was used to determine the association between variables under study. The results were presented using tables as deemed fit (Monye & Ibegbulem, 2018).
The findings of the chi-square tests indicated that strategic planning enhanced the performance of Zenith Bank. The results also showed that managerial, environmental, and organizational factors had an impact on strategic planning intensity. In addition, it was found that strategic planning had an important role to play in the survival of the organization (Monye & Ibegbulem, 2018).
The impact of strategic planning on organizational performance through strategy implementation
This study sought to determine the impact of strategic planning on the performance of manufacturing companies in Georgia. In particular, the study addressed the following objectives: to determine the effect of strategic planning on the performance of target firms and to establish the influence of strategic planning on strategy implementation in the target firms. The target population included 455 manufacturing firms in Georgia. A sample size of 80 respondents was selected to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics including frequency and percentage. Correlation analysis was employed to assess the association between study variables. Regression analysis was used to find out the effect of strategic planning on the performance of the target companies. The findings were presented using tables as deemed fit (Khoshtaria, 2018).
According to the findings of correlation analysis, strategic planning had a positive and significant impact on the performance of target companies. The results of regression analysis established that strategic planning explained 47.1% variance in the performance of manufacturing firms in Georgia. The findings also revealed that strategic planning explained 0% variance in strategy implementation. This means that, strategic planning had no impact on strategy implementation in the target firms (Khoshtaria, 2018).
Effects of strategic planning on performance of Medium-Sized Enterprises (MSEs) in Nakuru Town
This study investigated the effect of strategic planning on the performance of MSEs in Nakuru Town, Kenya. Specifically, the study addressed the following objectives: to find out the effect of strategic environmental analysis on MSE performance; to explore the effect of organizational direction on MSE performance; to examine the effect of strategy formulation on MSE performance; and to determine the combined effect of environmental analysis, organizational direction, and strategy formulation on MSE performance (Auka & Langat, 2016).
The target population included 62 MSEs operating within Nakuru town. A sample size of 54 respondents was selected from the target population to participate in the study. Data collection was done using a questionnaire. The collected data was analyzed using descriptive statistics such as frequency and percentage. Pearson correlation analysis was done to determine the associations between the study variables. Multiple regression analysis was employed to establish the effect of predictor variables (including environmental analysis, organizational direction, and strategy formulation) on the outcome variable, that is, MSE performance. The results were presented using suitable tables as required (Auka & Langat, 2016).
The results of correlation analysis indicated that environmental analysis had a positive and significant association with MSE performance, organizational direction had a positive and significant association with MSE performance, and strategy formulation had a positive and significant association with MSE performance (Auka & Langat, 2016).
The findings of multiple regression analysis indicated that 42.4% variance in performance of the MSEs in Nakuru town was accounted for by the combined dimensions of strategic planning, including environmental analysis, organizational direction, and strategy formulation. Specifically, the findings of regression standardized coefficients indicated that when all factors are kept constant: environmental analysis contributed to 63% variance in MSE performance; organizational direction contributed to 24.3% variance in MSE performance; while strategy formulation contributed to 12.2% variance in MSE performance. Thus, environmental analysis had the highest impact on MSE performance, followed by organizational direction, and lastly, strategy formulation had the least impact on MSE performance (Auka & Langat, 2016).
Citation
Auka, D. and Langat, J. (2016). Effects of strategic planning on performance of medium-sized enterprises in Nakuru town. International Review of Management and Business Research, 5, 188.
Chukwuka, J.C. and Ese, I.G. (2022). Effect of strategic planning on the performance of small- and medium-scale enterprises in Nigeria: evidence from Delta State. Asian Journal of Economics, Business and Accounting, 22(23), 1-14.
Cruz, E.C.O. de la., Benavente, L. de, J.G., Rivera, C.G.J. (2023). Strategic planning model and its impact on the development of micro-enterprises in the services sector in Mexico. International Journal of Professional Business Review, 8(5), 1-22.
Dini, Y.I.F., Masnita, Y., Yusran, H.L., and Setyawan, A. (2025). Assessing the role of strategic planning & transformational leadership on MNCs’ organizational performance. International Journal of Academic Research in Economics & Management Sciences, 14(2).
Efi, A.E., Udofia, N.S., Ndianabasi, S., and Imagha, O.A. (2018). Impact of strategic planning on organizational performance of University of Uyo. International Journal of Management Studies, Business & Entrepreneurship Research, 3(3).
Kemboi, V. and Misango, S. (2021). Analysis of influence of strategic planning practices on organization performance: a case of Baringo County government, Kenya. International Journal of Research and Scientific Innovation, 8(10).
Khoshtaria, T. (2018). The impact of strategic planning on organizational performance through strategy implementation. Globalization and Business, 5.
Monye, M.C. and Ibegbulem, A.B. (2018). Effect of strategic planning on organizational performance and profitability. International Journal of Business & Law Research 6(2), 31-40.
Mousa, K.M., Ali, K.A.A., and Gurler, S. (2024). Strategic Planning and Organizational Performance: An Empirical Study on the Manufacturing Sector. Sustainability.
Mukuru, N.K., Kambura, S., and Chesigor, F. (2025). Effect of strategic planning on financial performance of public hospitals in Tharaka Nithi County, Kenya. International Journal of Finance, 10(5), 71-85.
Oumakhlouf, N. and Kherbachi, H. (2023). Measuring the impact of strategic planning on organizational performance using PLS approach. Les Cahiers du Cread, 39(2), 201-225.
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