A LARGE-SCALE 2ND-ORDER STRUCTURAL EQUATION MODEL OF THE INFLUENCE OFMANAGEMENT PARTICIPATION ON ORGANIZATIONAL PLANNING BENEFITS

This study analyzes the relationship between management participation in strategy formation and organizational planning benefits with the co nstruction and subsequent empirical validation of a large-scale struct ural equation model with 57 items. This model simultaneously considere d first-order and second-order measurement models as well as the struc tural model. Methodological emphasis was placed on developing expanded conceptualizations of these strategy constructs by modeling them as s econd-order factors and expressing their defining constituent domains of content as first-order factors. Results indicate a strong causal li nkage between management participation and two classes of strategic be nefits, suggesting that management participation enhances the effectiv eness of the strategy process.