An Analysis on the Effect of Strategic Planning Towards Company Performance in the Effort of Creating Competitive Advantages

Abstract

The purpose of this study is to discover and to analyze the effect of: 1. Managerial factor towards strategic planning, 2. Environmental factor towards strategic planning, 3. Cultural organization factor towards strategic planning, 4. Strategic planning towards the competitive advantages, 5. Company Perfomanc toward  Competitive Advantage.  This study is a causal type of study and this study tested the results using Path Analysis. The measurement of the result used Linkert scale. The population of this study is the entire Micro-, Small-, Medium-scale Enterprise (UMKM) actors. The data gathered were in the form of primary and secondary data. Study result showed that managerial factor insignificantly and negatively affected Strategic Planning. Then, environmental factor significantly and positively affected Strategic Planning. Cultural organization factor insignificanly and positively affected Strategic Planning. As for managerial factor, it directly influenced company performance. Managerial factor, cultural organization factor, and environmental factor influenced, as many as 63,3%, to Company Performance, whereas managerial factor, cultural organization factor, environmental factor, and performance influenced, as many as 88,8%, to competitive advantage.

Keywords: Strategic Planning, Performance, Competitive Advantage

DOI: 10.7176/EJBM/11-35-01

Publication date: December 31^st 2019