Abstract
Furthering the established association between environmental
influence andfirms’ performance, the study tested the mediating
role of strategic planning on the connection between dynamic
environment and firms’ performance. Data for the researchwere
collected from 245 manufacturing Small and Medium
Enterprises (SMEs) operating in Khyber Pakhtunkhwa (KP),
Pakistan through survey questionnaires. Statistical analysis of
Confirmatory Factor Analysis (CFA), Path Analysis, and
mediation analysis were carried out to test the hypotheses. The
hypotheses testing revealed that environmental dynamism
strongly influenced firm performance as well as strategic
planning. Similarly, firm performance showed significant
response to strategic planning. Deeper analysis of mediation
confirmed partial mediating role of strategic planning on the
association between firms’ performance and environmental
dynamism. The findings of the research implies that managers
should consider business environment in each strategic choice
making it alignedwith its strategic planning,firm goals and
objectives in order to promote business.
Fazal Haleem, Muhammad Jehangir, ZahoorUlHaq. (2018) Link between Environmental Dynamism and Firm Performance: The role of Strategic Planning. , Journal of Managerial Sciences, Volume 12, Issue 3.
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