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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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