
Accounting Papers
Document Type
Journal Article
Date of this Version
10-2005
Publication Source
Small Business Economics
Volume
25
Issue
3
Start Page
207
Last Page
222
DOI
10.1007/s11187-003-6458-4
Abstract
This paper investigates causal relationships between planning and performance utilizing a longitudinal database with responses from the same 2,956 businesses over a four-year period. Results confirm the association between planning activity and performance that is evident in most extant literature. They also, however, cast doubt on the traditional perception of the causal sequence of that association. Although subject to a number of limitations, the results indicate that planning is more likely to be introduced into a small firm after a period of growth rather than before a period of growth. These results make an important contribution to understanding the planning performance relationship for two main reasons: they overcome the static data and relatively smaller sample size restrictions of many past studies; and, they provide evidence concerning the sequence of the relationship between planning and performance.
Keywords
small firm, performance relationship, planning activity, extant literature, four-year period, industrial organization
Recommended Citation
Gibson, B., & Cassar, G. (2005). Longitudinal Analysis of Relationships Between Planning and Performance in Small Firms. Small Business Economics, 25 (3), 207-222. http://dx.doi.org/10.1007/s11187-003-6458-4
Date Posted: 27 November 2017
This document has been peer reviewed.
Comments
Dianne Wingham was a co-author for this article prior to its publication in the Small Business Economics journal. The authors of the final version are Brian Gibson and Gavin Cassar. (This final version version is available online at: http://link.springer.com/article/10.1007%2Fs11187-003-6458-4.