Successful Implementation of Strategic Planning Systems a Path Analytic Model

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Successful Implementation of Strategic Planning Systems a Path Analytic Model
N Venkatraman
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P6: The system's capability has a significant effect on perceived implementation success.
The Central Role of System Capability An important premise of the theoretical model is that the system's capability occupies a central role and exerts a positive and significant effect on the effective implementation of strategic planning systems. The underlying logic is that the quality of strategic decisions is considerably enhanced if the system is capable of meeting the various requirements of strategy
... formulation, evaluation, and implementation (Hax and Majluf, 1984; Lorange, 1979; Thompson, 1967).
In addition, a careful analysis of the theoretical model and the propositions derived thus far would indicate that the impact of the dimensions -16- representing the first two stages of the model on IMPL-SOCCESS is both direct and indirect (acting through the third stage represented by SYSTEM-CAPAB) . If the theoretical argument that system capability occupies a central role in the overall strategic management process is to be tested, then the direct effects of the organizational context and the planning orientation on IMPL-SUCCESS will be weaker than their corresponding indirect effects through SYSTEM-CAPAB.


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