STRATEGIC-PLANNING FINANCIAL PERFORMANCE RELATIONSHIPS IN BANKS - A CAUSAL EXAMINATION

An integrative model of relationships among managerial, environmental, and organizational factors, strategic planning intensity, and financi al performance was developed and tested using data from 112 banks. The results suggested that the intensity with which banks engage in the s trategic planning process has a direct, positive effect on banks' fina ncial performance, and mediates the effects of managerial and organiza tional factors on banks' performance. Results also indicated a recipro cal relationship between strategic planning intensity and performance. That is, strategic planning intensity causes better performance and, in turn, better performance causes greater strategic planning intensit y Finally, the results hold implications for other financial services institutions subject to similar conditions that banks must operate und er. (C) 1997 by John Wiley & Sons, Ltd.