A new model for strategy: The internal dimensions in a strategic plan

Abstract

The aim of this study is to deep into the analysis of strategic planning and its consequences. Particularly, we look at the relationship between the economic performance of firms and their strategic plans. To do so, we gather a new database containing economic information of 150 firms, together with information related to their mission, vision and values. We analyze empirically the relationship between different measures of firm performance with each of these variables through the t-test methodology for independent samples. In addition, linear regression analysis is also performed to control for other variables such as firm size. Findings reveal, in some cases, a positive relation between the mentioned aspects that still hold in most cases when controlling for the number of employees. However, commonly, these relations are not statistically significant, so we cannot conclude that there is a clear and robust positive relationship between strategy, human resources, and processes.