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.

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.

Keywords

small firm, performance relationship, planning activity, extant literature, four-year period, industrial organization

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Date Posted: 27 November 2017

This document has been peer reviewed.