Abstract:
To help bridge the gap between the emergent and rational school of strategy formation, I analyze the role of alternative generation and information integration as two process-based characteristics of the strategy process in the relationship between strategic planning and decision quality. Based on a survey of 155 top executives from German small and medium-sized companies, I show that the degree to which multiple alternatives are developed and information is integrated in the planning process mediates a large proportion of the relationship between strategic planning and decision quality. This suggests that a closer analysis of process characteristics in the analysis of strategic planning may help mitigate the divergent results in strategic planning research.
